ADX's Welchau-1 well discovers condensate rich gas in Austria

Australia's ADX Energy on March 18 announced it had encountered a liquids-rich gas column at the Welchau-1 well, situated within the ADX-AT-II exploration license area in Austria.

The Welchau-1 well encountered a 115-meter column of liquids-rich gas within the primary target Steinalm formation, spanning depths from 1,452 meters to 1,567 meters measured depth (MD). 

“The Welchau gas discovery has the potential to yield an exceptional gas resource for ADX, its partner MCF and the Republic of Austria,” said ADX executive chairman Ian Tchacos.

The Welchau-1 well is positioned to target the mid-Triassic age Steinalm formation, which has previously shown promising gas reserves in the nearby Molln-1 well, ADX said. The expected total drill depth is between 1500 metres to 1900 metres measured depth (MD). The main target depth is between 1100 metres and 1800 metres measured depth.

ADX Energy has entered into an agreement with MCF Energy to co-fund 50% of the Welchau-1 well costs, up to a cap of €5.1mn. In return, MCF Energy will earn a 25% economic interest in the Welchau investment area, which is part of ADX's ADX-AT-II license in Upper Austria. Upon fulfilling its funding obligations, MCF Energy's stake will stand at 25%, while ADX Energy will retain a 75% interest in the area.