ADX Energy closing in on gas targets at its LICHT-1 exploration well

ADX Energy is preparing to drill towards shallower Oligocene reservoirs within its LICHT-1 exploration well that could host additional gas.

• ADX Energy’s LICHT-1 gas exploration well is drilling ahead as planned

• Drilling is expected to take 30 days to reach planned total depth of ~2900m

• Success could unlock a number of similar follow up prospects  in close proximity

Special Report: Drilling of ADX Energy’s Lichtenberg-1 (LICHT-1) exploration well in its ADX-AT-I licence in Upper Austria, to test a prospective reservoir that could host 21.1 billion cubic feet of gas, is progressing as planned.

Drilling has reached a depth of 1905m, with the current plan to run and cement seven inch casing before setting up for and drilling ahead in a six inch hole.

LICHT-1 is expected to take 30 days to reach its planned total depth of ~2900m, with ADX Energy (ASX:ADX) expecting to hit shallower Oligocene reservoirs that are geologically similar to the primary target reservoir from about 2000m.

The primary target reservoir, which hosts the best estimate prospective resources of 21.1Bcf gas, is expected to be intersected from a depth of ~2500m.

Should drilling be successful, the company expects detailed logging, casing and suspension of the well for future testing to take a further 10 days.

Location of the LICHT-1 gas exploration well and the successful Anshof-2A oil appraisal well recently drilled. Picture: ADX

First of many

Drilling of LICHT-1 is estimated to cost ~$8.5m, though this is largely covered by partner MND Austria’s commitment to fund €4.5 million ($7.4m) to earn 50% of the MND Investment area within the ADX-AT-I licence.

The well is the first of several similar prospects such as GOLL, HERR and STOET in the same licence that are covered by high quality 3D seismic to be tested by ADX.

Should it be successful, it will de-risk these prospects, some of which are significantly larger than LICHT-1. This could as much as triple gas resources in this area of the ADX-AT-I licence.

There is also potential for more gas to be found within the shallower reservoirs at LICHT-1.

If successful the LICHT prospects will  benefit from its close proximity to existing gas pipelines, enabling a quick and cost effective pathway to market.

This article was developed in collaboration with ADX Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.