ADX Energy HOCH-1 Delivers 2.8 MMcf/d Gas Flow in Upper Austria

ADX Energy's HOCH-1 Well Delivers Encouraging First-Zone Flow Rates in Upper Austria

ADX Energy Ltd (ASX: ADX) has reported a positive production testing result from the Hochfeld-1 (HOCH-1) shallow gas exploration well in Upper Austria. The ADX Energy HOCH-1 gas flow results in Upper Austria represent a notable early milestone, with the first gas sand interval perforated delivering a clean-up flow rate of 2.8 million cubic feet per day (equivalent to 467 boepd) on a 16/64 inch choke, with flowing wellhead pressure of 940 psi and rising.

According to the ASX release on 18 June 2026, this initial result is an early indicator for a broader, multi-zone testing and appraisal campaign within the ADX-AT-I exploration licence, where ADX Energy Ltd is operator and holds a 50% economic interest in the HOCH prospect.

HOCH-1 key test result (Zone 1):

According to ADX Energy Ltd, the water-free gas flow and increasing wellhead pressure from Zone 1 indicate good inflow performance from the tested sand.

"The water free flow rate and flowing pressure is very encouraging indicating good inflow performance for the sand interval."
– ADX Energy Ltd, ASX release, 18 June 2026

First Zone Out of the Gate – and the Metrics Behind the Test

The HOCH-1 shallow gas exploration well was drilled, cased and completed on 15 May 2026 within the ADX-AT-I exploration licence in Upper Austria. It is the first of three shallow gas prospects planned for drilling in the area, with two additional gas prospects already permitted for drilling in 2026.

Zone 1, the first interval selected for testing, is a Basin Floor Fan (BFF) reservoir perforated at approximately 1,465 metres. The testing to date represents a clean-up flow, meaning the well is in the early stages of production testing and is still clearing residual drilling and completion fluids.

The following technical points are highlighted in the ASX announcement:

• The test was run on a small choke (16/64 inch), which deliberately restricts flow.
• Average rate of 2.8 MMcf/d gas, or approximately 467 boepd equivalent.
• Wellhead pressure of 940 psi and rising, suggesting continued support from the reservoir.
• No water was produced during the test.

From an investor perspective, several aspects are of interest:

• A clean-up flow is generally not optimised for maximum rate, so the reported flow is a conservative early indicator of deliverability.
• The absence of water suggests that, at this stage, the gas zone is not producing formation water, which can otherwise impact operating costs and long-term performance.
• An increasing flowing pressure tends to suggest that the reservoir is still building pressure response during the test period, rather than rapidly depleting.

What Comes Next: A Structured, Multi-Zone Testing Programme

Production testing at HOCH-1 is being conducted in two phases, according to ADX Energy Ltd:

• Phase 1 – Focused on the upper Hall formation, targeting:
  • Up to three firm zones, plus
  • A potential fourth contingent zone

• Phase 2 – Focused on the lower Base Hall formation

Following the initial clean-up of Zone 1, the planned next steps reported by the company are:

1. Run downhole pressure gauges into the well to record accurate reservoir pressures during flow and shut-in.
2. Flow Zone 1 at a stable rate (or rates) for approximately 14 hours to establish more representative production conditions.
3. Shut in the well for approximately two weeks to record a pressure build-up response.
4. Use the downhole pressure data to estimate the reserves potential of this BFF gas sand interval before testing further zones.

This process is a standard methodology in gas well appraisal. Furthermore, the stable flow period provides information on how the well behaves under controlled production, whilst the pressure build-up during shut-in helps estimate how far the reservoir extends, how well connected the gas-containing rock is, and how much gas could potentially be recoverable from the tested interval.

ADX has also outlined that the remaining sand intervals will be perforated sequentially, each followed by brief clean-up flows. The perforation sequence and flow periods will be adjusted based on the inflow performance of each zone, meaning that test design will be refined as more data is collected.

Understanding Basin Floor Fan Reservoirs: Why the Geology Matters

What Is a Basin Floor Fan (BFF)?

A Basin Floor Fan is a type of sedimentary deposit formed when sand and other material move down a slope and spread out across the bottom of a sedimentary basin. Over time, these deposits are buried and turned into rock.

In the subsurface, BFF deposits:

• Are often laterally extensive, meaning they can cover a large area.
• Tend to have consistent rock properties across that area.
• Can form effective reservoirs for hydrocarbons, such as gas.

HOCH-1 Zone 1 is described by ADX Energy Ltd as a BFF reservoir that is expected to be deposited over an extensive area.

Why Is BFF Geology Relevant for Investors?

For investors following the ADX Energy HOCH-1 gas flow results in Upper Austria, the BFF classification is particularly relevant for several reasons:

• Scale potential: Laterally extensive reservoirs can sometimes host larger connected gas volumes compared with very localised traps.
• Predictability: BFF deposits can have more consistent thickness and rock quality, which may simplify well placement and resource modelling.
• Data leverage: A successful test in one well may provide useful information to guide future drilling and testing across the same fan system.

However, the actual recoverable volumes will depend on measured pressure behaviour, gas properties, and further zone testing. Consequently, the planned pressure build-up analysis at HOCH-1 is a central data point for refining estimates.

Educational Section: How Gas Well Testing and Pressure Build-Up Work

To understand the HOCH-1 update from ADX Energy Ltd, it is useful to clarify some of the main technical terms and processes referenced in the ASX announcement.

Clean-Up Flow

• After drilling and completing a well, there are often fluids and debris left in the wellbore and near the reservoir.
• A clean-up flow is an initial production period where the well is opened to allow these fluids and solids to flow out.
• Reported rates during clean-up are informative but not final, as the reservoir may not yet be flowing at stable conditions.

Choke Size

• A choke is a device at the surface used to control the flow rate from a well.
• A 16/64 inch choke is relatively small, meaning the well is intentionally constrained.
• Increasing the choke size generally allows a higher flow rate, subject to reservoir capacity and operating limits.

Downhole Pressure Gauges and Pressure Build-Up

• Downhole pressure gauges are instruments placed deep in the well to record pressure and sometimes temperature.
• During a flow period, the reservoir pressure near the well drops as gas flows.
• After the well is shut in, pressure begins to rise again as gas moves back towards the wellbore.
• By analysing this pressure build-up curve, reservoir engineers can estimate how easily gas flows through the rock, whether the reservoir seems large and well connected, and the approximate reserves potential associated with the tested interval.

Key Terms Mini Glossary

For investors, understanding these concepts helps interpret what early test results such as those from HOCH-1 may signal about potential future production and reserves.

Three Prospects, Eight Reservoirs, One Active Drill Bit

According to ADX Energy Ltd, HOCH-1 is part of a broader shallow gas exploration programme in Upper Austria. Key facts from the ASX release include the following:

• HOCH-1 is the first of three shallow gas prospects to be drilled.
• Two additional gas prospects are permitted for drilling in 2026.
• In HOCH-1, drilling and logging identified up to eight gas reservoirs within the Hall formation and Base Hall formation.

The testing strategy has been set up in a structured way. Phase 1 focuses on the upper Hall formation, covering up to three firm gas zones and a fourth contingent zone subject to results. Phase 2, in turn, focuses on the lower Base Hall formation.

The company has indicated that sand intervals will be perforated one after another, with each zone receiving a brief clean-up flow. The order of perforation and duration of flow for each zone will be determined by the inflow performance observed, allowing ADX Energy Ltd to prioritise zones that demonstrate better deliverability and build up a clearer picture of the overall gas potential of the HOCH-1 well.

HOCH-1 and programme snapshot

Investment Context: Why the HOCH-1 Result Matters

While the HOCH-1 programme remains at an appraisal stage, the ASX release from ADX Energy Ltd highlights several points that may be relevant to investors assessing the company.

1. First-Zone Flow Rate Suggests Potential Deliverability

The 2.8 MMcf/d (467 boepd equivalent) clean-up flow on a small 16/64 inch choke indicates that Zone 1 has the capacity to deliver gas at rates that may be commercially meaningful, subject to costs, infrastructure and market conditions.

As the well has not yet undergone a sustained, optimised flow period, there is still uncertainty around long-term deliverability, which the planned 14-hour stable flow and pressure build-up analysis are designed to address.

2. Water-Free Gas Flow Is Positive from a Reservoir Perspective

The company reports a water-free flow from Zone 1 during the clean-up. For gas wells, persistent early water production can sometimes indicate proximity to a water contact or potential for water encroachment under production.

In contrast, gas without water at this stage can suggest a cleaner gas reservoir interval, although longer-term behaviour still needs to be monitored through extended testing and, if applicable, production.

3. Multiple Zones and Prospects Provide Additional Optionality

With up to eight gas reservoirs identified in HOCH-1, and two additional shallow gas prospects permitted for drilling in 2026, the programme outlined by ADX Energy Ltd provides several upcoming technical catalysts:

• Results from pressure build-up and reserves estimation for Zone 1.
• Test outcomes from additional zones in the Hall formation and potentially the Base Hall formation.
• Future drilling and testing on the other shallow gas prospects.

Each step may refine the understanding of gas potential within the ADX-AT-I licence.

4. Basin Floor Fan Setting Supports Scale Potential, Subject to Data

The description of Zone 1 as a BFF reservoir deposited over an extensive area suggests that, if pressure data indicates good connectivity and reservoir quality, the volume of connected gas associated with this interval could be material. However, this remains dependent on results of pressure build-up analysis, testing of additional zones, and further drilling within the same geological setting.

Upcoming Catalysts to Monitor

According to the ASX announcement, the following operational steps at HOCH-1 are expected in the near term:

• Stable flow test for Zone 1 – approximately 14 hours at a controlled rate, with downhole pressure gauges in place.
• Two-week shut-in period – to record pressure build-up and define the extent and connected volume of the reservoir supplying the well.
• Reserves potential estimate for Zone 1 – based on analysis of pressure data recorded in the downhole gauges.
• Testing of further zones – up to three firm zones plus one contingent zone in the Hall formation during Phase 1, followed by Phase 2 testing in the Base Hall formation.
• Further programme activity – drilling of two additional permitted shallow gas prospects in 2026.

For investors following ADX Energy Ltd, each of these steps is likely to be reported through further ASX releases and may affect the technical and commercial interpretation of the HOCH-1 well.

Why ADX Energy Ltd Warrants Investor Attention at This Stage

The ADX Energy HOCH-1 gas flow results in Upper Austria present ADX Energy Ltd as an active operator in a European onshore gas exploration setting. In summary, the key highlights include:

• A successful initial clean-up flow from Zone 1 at 2.8 MMcf/d on a small choke.
• Water-free gas and rising wellhead pressure, which the company interprets as indicating good inflow performance.
• Up to eight gas reservoirs identified within the Hall and Base Hall formations.
• A phased, multi-zone testing programme, with pressure build-up analysis aimed at providing an estimate of reserves potential for the BFF gas sand interval in Zone 1.
• A broader three-well shallow gas prospect programme in Upper Austria, with HOCH-1 as the first well drilled.

With oversight of technical information by a qualified geophysicist with 30 years of experience, as stated in the ASX announcement, the data and interpretations presented by ADX Energy Ltd will be further refined as testing progresses.

For investors monitoring small-cap energy companies with active drilling and near-term operational updates, the ADX Energy HOCH-1 gas flow results in Upper Austria represent a developing story that may warrant ongoing attention as further testing milestones are reached.

Want to Follow the HOCH-1 Story as It Develops?

ADX Energy Ltd (ASX: ADX) is actively testing up to eight gas reservoirs at HOCH-1 in Upper Austria, with two additional shallow gas prospects already permitted for drilling in 2026. With Zone 1 delivering encouraging early clean-up flow rates and a structured multi-zone testing programme underway, there are several near-term operational milestones that investors may wish to track closely. To learn more about ADX Energy's projects, exploration licence, and investment case, visit the company's official website at adx-energy.com.