ADX Energy Limited (ASX:ADX, OTC:ADXRF) has encountered gas-filled sands in the Hall Formation while drilling the Hochfeld-1 (HOCH-1) shallow gas exploration well in Upper Austria.
Gas-filled sands were first intersected at about 1,350 metres measured depth, with the well drilling ahead at 1,367 metres as of 6.00am CET on May 6, 2026.
Additional gas shows encountered while drilling have prompted ADX to deepen the well to at least 1,550 metres.
The interpretation of biogenic gas-filled reservoirs is based on drill cuttings, mud logs, compositional gas analysis and high total gas concentrations.
A high resolution 3D seismic X section showing Hall gas reservoirs intersected in the HOCH-1 well which correlate closely with the pre-drill 3D seismic depth prediction and gas filled reservoirs based on DHI’s (direct hydrocarbon indicators). Note TG means total Gas and C1 means methane.
“The Board of ADX is pleased and encouraged by the initial drilling results indicating that HOCH-1 is a gas discovery in line with our predrill expectations. We expect that a planned wireline logging program and initial quick look interpretation over the next few days will confirm the drilling results to date. If the logging results are positive, we will run casing and complete the well prior to well testing a soon as practically possible. Well testing will provide important productivity data and the reserves potential of the discovery," ADX executive chairman, Ian Tchacos, said.
“Importantly the excellent pre-drill 3D seismic prediction provides confidence in the potential of the shallow gas play, our large number of matured prospects and increases the expectation of success for the permitted GOLD and SCHOEN prospects which are planned to be drilled in 2026.
“We look forward to further reporting in relation to the logging program over the next few days and in all likelihood a testing program within a few weeks.”
What it means for the shallow gas play
The result is significant because the Hall Formation reservoirs encountered in HOCH-1 correlate closely with ADX’s pre-drill 3D seismic predictions.
That alignment provides further support for the company’s shallow gas model in Upper Austria, where ADX is targeting Miocene-aged sandstone reservoirs that have delivered strong production rates in nearby wells.
Similar Hall Formation wells have recorded initial production rates of up to 9 million cubic feet per day, or about 1,500 barrels of oil equivalent per day.
Builds on HOCH resource case
HOCH-1 is the first of 3 permitted shallow gas targets ADX plans to drill in 2026.
The HOCH prospect has a mean prospective resource of 8 billion cubic feet and a high-case prospective resource of 17.3 billion cubic feet.
ADX operates the well and holds a 50% economic interest in the HOCH prospect within the ADX-AT-I exploration licence.
What’s next
ADX plans to run wireline logs to confirm reservoir quality, net reservoir thickness and gas saturation.
A quick-look log analysis will follow. If logging confirms the drilling results, the well will be cased and completed ahead of production testing.
Testing would then be used to assess deliverability and support reserves estimates for the discovery.