ADX grows oil and gas opportunities with Austrian licence expansion

ADX Energy has secured variations to its exploration and production licence areas in Upper Austria, allowing for multiple new growth opportunities without the company sustaining any additional expenses.

The strategic changes have tripled the number of ADX’s drill-ready shallow gas targets and expanded its Welchau oil and gas play, positioning the company to rapidly increase production and cash flow from a proven gas play, amid Europe’s highest gas prices in two years.

The position should strengthen ADX’s short-term revenue base and long-term resource potential.

ADX initiated and designed the licence variations to seize multiple asset expansion opportunities with different play types in the basin. These include multiple immediate, low-risk and drill-ready shallow gas targets.

Austria’s Finance Ministry and ADX have agreed on the variations to the company’s AT-I and AT_II exploration and production licence areas, with a final area amendment agreement expected during the second quarter of 2025.

The company has been building an inventory of low-risk gas prospects for some time by leveraging our knowledge of a proven and commercially successful play that is present across the basin.

The ASX-listed oil and gas explorer/producer operates primarily in Austria and Italy, with interests in the Vienna Basin and the Sicily Channel. It banked $2.3 million in sales for the last quarter from its Austrian oil and gas projects, with net production averaging 218 barrels of oil equivalent per day.

The company started commercial production from its Anshof-2A sidetrack oil appraisal well in Upper Austria in December last year and has been testing the Welchau-1 gas discovery.

As well as enhancing its exploration portfolio, ADX is looking to form partnerships for some of its near-term drilling prospects, aiming to create shareholder value.

It is proactively developing its Austrian asset base and exploring new opportunities in energy-starved Europe. It will likely have no shortage of customers when the Welchau-1 prospect is brought into production given Austria imports about 92 per cent of its crude oil requirements.

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