ADX Energy has secured approval to drill in the Welchau Gas Prospect located in ADX-AT-II licence in Upper Austria.
The drilling permit was issued by the local mining authority on behalf of the Republic of Austria’s ministry of finance.
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With the permit, ADX Energy can drill and test the Welchau-1 well and if necessary, start a longer-term production test.
According to the drilling permit, the Welchau-1 well may be drilled at any time during the exploration license’s duration if it is done so between 1 October and 31 March.
Receiving an environmental clearance, which is based on an environmental assessment done by an independent expert, is the last step in the permitting process.
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Following receipt of the environmental clearance, drilling activities are anticipated to start during the fourth quarter of 2023.
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By GlobalDataADX Energy’s technical prospective resources estimate suggest that the Welchau gas prospect has 807 billion cubic feet of gas equivalent.
A gas find at the Molln-1 well, which OMV drilled and thoroughly tested in the late 1980s, may be related to this development, ADX Energy said.
MCF Energy has agreed to pay 50% of the Welchau-1 well’s expense in exchange for a 20% stake in the Welchau Investment Area, with ADX Energy holding the remaining 80% stake.
ADX Energy executive chairman Ian Tchacos said: “The Welchau exploration project is an exceptional domestic energy supply and economic opportunity for the State of Austria. We look forward to the ongoing engagement with our stakeholders and the local community based on factual information in relation to the project’s environmental impact, the relevant safeguards deployed, as well as the potential social and economic benefits if the well is successful.”
In March this year, the ASX-listed company received production licence for Anshof oil field in Austria’s ADX-AT-II exploration licence.
