ADX Energy Ltd (ASX: $ADX) has issued a detailed update on its ongoing operations at the Lichtenberg-1 (LICHT-1) gas exploration well, located in its ADX-AT-I license in Upper Austria. The drilling campaign, which began on September 26, 2024, is leveraging the technical capabilities of the RED Drilling & Services GmbH (RED) E-202 rig, the same rig used for the recent Anshof-2A oil appraisal well.
Current Developments and Operational Highlights
As of the morning of October 14, 2024, the LICHT-1 well had reached a measured depth of 1905 meters. The operation is currently transitioning to a critical phase where electric line logs will be run in the 8 ½ inch hole, followed by the deployment of a 7 inch casing. This setup will pave the way for further drilling to reach the proposed total depth of approximately 2900 meters. The well targets primarily an Upper Oligocene sandstone reservoir, along with two slightly shallower reservoirs, both of similar geological characteristics. These targets are based on positive data from offset production wells, which have shown high productivity levels.
Strategic Implications for ADX Energy
ADX Energy retains a 50% economic interest in the well and the broader MND Investment Area, expected to rise upon the completion of farmin obligations by MND Austria a.s. This strategic holding increases to a 100% interest in the remainder of the ADX-AT-I license, encompassing several other promising gas exploration prospects.
Market and Future Prospects
The significance of the LICHT-1 well extends beyond its immediate drilling outcomes. Successful extraction and subsequent operations could potentially de-risk and upgrade three nearby prospects, which, based on 3D seismic mappings, exhibit a high probability of containing marine sandstones of Oligocene age. These prospects—GOLL, HERR, and STOET—are posited to possess a resource potential that could substantially enhance ADX's reserve base and long-term gas production.
Conclusion: A Pivotal Moment for ADX and its Stakeholders
The exploration activities at LICHT-1 represent a pivotal moment for ADX Energy, with the potential to significantly bolster the company's resource portfolio and market standing. Investors and market watchers are keenly observing the developments, as success here could not only provide a substantial boost to ADX's operational outputs but also strengthen its position in the European energy sector. With further updates anticipated in the coming weeks, the industry awaits to see how these exploratory efforts will unfold, potentially setting the stage for a new era of energy production for ADX Energy Ltd.
