ADX Energy HOCH-1 Discovers Six Additional Gas Intervals in Upper Austria

ADX Energy HOCH-1 Well Discovers Six Additional Gas Intervals in Upper Austria

ADX Energy Ltd (ASX: ADX) has delivered another encouraging update from its Hochfeld-1 ("HOCH-1") shallow gas exploration well in Upper Austria, announcing the discovery of six additional gas-bearing sand intervals below the previously reported primary target. The ADX Energy HOCH-1 well discovers six additional gas intervals in Upper Austria, marking a significant milestone as drilling reaches a measured depth of 1,619 metres, with wireline logging now underway to confirm the commercial significance of what is shaping up as a potentially multi-layered gas discovery.

The development is notable not just for confirming the primary Hall Formation target but for revealing what could be meaningful bonus pay across a deeper zone that was not included in pre-drill resource estimates. Furthermore, this adds an unquantified upside dimension to a prospect that already carries a Mean Prospective Resource of 8.0 BCF and a High Case of 17.3 BCF.

More Gas Than Expected: What Has the Drilling Found?

HOCH-1 commenced drilling on 16 April 2026, targeting Miocene-aged sandstone reservoirs within the Hall Formation — a well-understood, highly productive horizon in the Upper Austrian basin. The primary target interval was intersected between 1,354 and 1,368 metres MD, as previously reported.

In the latest phase of operations, the well was deepened beyond the primary target, drilling from 1,367 metres to 1,619 metres in the 6⅛-inch hole section. What the team found was unexpected upside: six additional thin gas sand intervals, each approximately 1 to 2 metres gross thickness, identified through drilling cuttings and elevated gas concentrations recorded in the drilling mud.

These intervals — referred to as the "Base Hall" formations — are distinct from the primary 3D seismic-defined Basin Floor target. Importantly, they were not captured in the pre-drill prospective resource estimates, meaning any contribution they make to production or reserves would represent incremental value above what was already modelled.

"The deeper, thinner Base Hall formations encountered within the well below the 3D seismic well-defined primary (Basin Floor) target are of economic interest. Analogous Base Hall reservoirs have provided meaningful contributions to production rates and reserves in other nearby wells in the basin."

— Ian Tchacos, Executive Chairman, ADX Energy

What Comes Next: Logging, Casing, and Production Testing

The wireline logging programme — the critical next step in confirming whether these gas shows translate into commercial volumes — was scheduled for 8 May 2026, with a quick-look analysis expected to be available by 9 May 2026. The slight delay from the original schedule was a direct result of the decision to deepen the well to investigate the additional gas intervals, reflecting management's confidence in what the drill bit was encountering.

The path forward, assuming logging confirms the drilling results, is clearly defined:

1. Wireline logging (8 May) — confirms reservoir quality, net thickness, and gas saturation across both the primary Hall Formation and the six Base Hall intervals
2. Quick-look log analysis (expected 9 May) — provides an early read on reservoir parameters
3. Casing and completion — well cased and prepared for production testing if logging results are positive
4. Production testing — to determine reservoir productivity and establish minimum reserves potential; requires mobilisation of a testing spread, expected within a few weeks

Understanding the Resource Potential: What Do the Numbers Mean?

To appreciate the significance of HOCH-1, it helps to understand the pre-drill resource estimates and the context of the broader programme.

Drill-Ready Shallow Gas Prospects — ADX-AT-I Licence (Prospective Resources, BCF)

ADX holds a 50% economic interest — net figures are half the gross estimates above.

ADX's stake in HOCH alone carries a net Mean Prospective Resource of 4.0 BCF and a net High Case of 8.65 BCF. Across both HOCH and SCHOE, the combined net Mean resource reaches 7.2 BCF with a High Case of 14.75 BCF net to ADX.

At current European gas prices, the company has indicated that an 8 BCF discovery would generate in excess of EUR 120 million in gross revenue — a striking figure for what are relatively shallow, low-cost wells in a region with established infrastructure.

A Closer Look: What Are "Base Hall" Intervals and Why Do They Matter?

What Are Base Hall Intervals?

The Hall Formation is a Miocene-aged sandstone unit in the Upper Austrian basin — a geologic layer deposited roughly 5 to 23 million years ago — known to contain biogenic gas (approximately 99% methane). The "Base Hall" intervals are thinner, deeper sandstone layers sitting below the primary Hall Formation reservoir that was the main drilling target.

Why Do They Matter to Investors?

In nearby wells across the same basin, analogous Base Hall reservoirs have contributed to both production rates and reserves. Because these intervals sit below the 3D seismic-defined primary target, they were not included in HOCH's pre-drill resource estimates.

If wireline logging confirms gas saturation and sufficient reservoir quality across some or all of the six newly identified intervals, their contribution to the overall resource picture would represent upside not previously accounted for in published estimates.

Even thin gas sands — at 1 to 2 metres gross thickness each — can be commercially meaningful when stacked across multiple intervals, particularly in a setting with high initial production rates, proximity to pipeline infrastructure, and favourable gas pricing.

Key Terms Explained

• BCF (Billion Cubic Feet): A standard unit for measuring natural gas volumes. 1 BCF is roughly equivalent to approximately 167,000 barrels of oil equivalent.
• Measured Depth (MD): The total length of the wellbore as drilled, which may differ from vertical depth in a directional well.
• Wireline Logging: A process where instruments are lowered into the wellbore on a wire to measure rock and fluid properties — the critical tool for converting gas shows into quantified resource estimates.
• AVO (Amplitude Variation with Offset): A seismic analysis technique used to detect the presence of hydrocarbons. A "Class 3 AVO" response, as observed at HOCH, is a direct hydrocarbon indicator.
• DHI (Direct Hydrocarbon Indication): Seismic evidence that suggests the presence of hydrocarbons directly, rather than inferring it from structural traps alone.
• mmscf/d: Million standard cubic feet per day — a measure of gas production rate.

The Broader Opportunity: A Three-Well Programme With Multiple Layers of Upside

HOCH-1 does not exist in isolation. It is the first of three permitted shallow gas wells ADX plans to drill across its Upper Austrian licences in 2026, with GOLD-1 and SCHOE-1 following in sequence. Beyond these three, ADX has identified up to ten shallow gas prospects across the ADX-AT-I and ADX-AT-II exploration licences — a substantial inventory of drilling targets generated from high-resolution 3D seismic data.

The economics of the programme are strengthened by several structural advantages:

• Shallow drilling depths keep well costs relatively low
• Proximity to open-access pipeline infrastructure — a tie-in to the Upper Austrian pipeline grid is approximately 2 kilometres from the HOCH drill site
• Cluster development potential — a combined HOCH/SCHOE development could share a single gas processing facility, improving capital efficiency
• High European gas prices — the company cites current pricing as a meaningful contributor to project economics
• Analogous well performance — nearby Hall Formation wells have recorded initial production rates of up to 9 mmscf/d (approximately 1,500 barrels of oil equivalent per day)

Why Investors Should Watch ADX Energy Closely

Several elements converge to make the coming weeks a potentially significant period for ADX shareholders. The confirmation that the ADX Energy HOCH-1 well discovers six additional gas intervals in Upper Austria adds a compelling layer of interest for those monitoring the company's progress.

The quick-look log analysis expected around 9 May will be the first substantive data point on whether the gas shows — across both the primary Hall target and the six newly identified Base Hall intervals — translate into commercially quantifiable resources.

A positive logging result triggers casing and completion, consequently moving the well rapidly toward production testing — the step that establishes actual reservoir productivity and minimum reserves. The Base Hall intervals discovered during deepening represent unmodelled upside that was not captured in published prospective resource estimates, meaning positive results there could prompt a re-evaluation of the prospect's resource potential.

With two more wells permitted for 2026, each additional well represents a separate catalyst for the stock, and a cluster development scenario across HOCH and SCHOE could unlock shared infrastructure economics. The 50% operating interest held by ADX means the company retains meaningful economic exposure to any success.

Key Investment Takeaway:

ADX Energy has positioned itself at a potentially significant inflection point in its Upper Austrian shallow gas programme. With wireline logging results imminent, six bonus gas intervals discovered beyond the primary target, and two more wells queued for 2026, the next few weeks could materially reshape the market's understanding of HOCH-1's resource potential. Investors with an interest in European gas exploration should watch developments closely as logging and production test results emerge.

Prospective Resources are those estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relating to undiscovered accumulations. These estimates have both a risk of discovery and a risk of development. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially recoverable hydrocarbons. Resource estimates are unrisked and have been estimated using probabilistic methodology in accordance with SPE-PRMS (2018). The technical information in this article has been reviewed by Paul Fink, Technical Director of ADX Energy Ltd, a qualified geophysicist with 30 years of experience, and a member of EAGE and FIDIC.

Ready to Dig Deeper Into ADX Energy's Austrian Gas Programme?

With wireline logging results imminent, six bonus gas intervals discovered beyond the primary target, and two further wells scheduled for 2026, ADX Energy (ASX: ADX) is approaching what could be a pivotal period for the company. Investors seeking to understand the full scope of HOCH-1's potential, the broader three-well programme, and ADX's growing inventory of Upper Austrian gas prospects can find further details directly from the source. Visit the ADX Energy website to explore the company's projects, licence holdings, and the latest investor updates.