Drilling of ADX Energy’s Welchau-1 gas exploration well progressing faster than expected
Fracturing noted in carbonate reservoirs, a good sign for future productivity
Minor hydrocarbon shows noted in the shallower Lunz Formation
Special Report: Drilling of ADX Energy’s potentially transformational Welchau-1 gas exploration well in the ADX-AT-II exploration licence in Upper Austria is progressing faster than expected.
Welchau has a best technical prospective resource of 807 billion cubic feet equivalent (Bcfe) of gas and is hosted in relatively shallow reservoirs updip of the nearby Moln-1 gas discovery that flowed 4 million cubic feet of pipeline quality gas per day during testing.
ADX Energy’s (ASX:ADX) drill costs are partly funded by partner MCF Energy, which is paying up to half to a cap of €5.1 million in return for a 25% interest in the Welchau Investment Area, reducing the company’s drill risk.
Any successful discovery is expected to result in a development decision as Europe is keen to purchase gas from domestic sources rather than relying on imports.
Positive signs
Welchau-1 is currently at a depth of 1,028m – about four days ahead of the well plan due to better than expected drilling penetration rates.
“Quick look” interpretation of image and dip logs taken in the 12 1/4 inch open hole section confirms the well intersected a large north-verging anticline close to the crest of the structure.
Notably, carbonate formations intersected to date have demonstrated evidence of fracturing, faulting and gentle folding which is the result of deformation predicted at the crestal location of the Welchau anticline structure.
This is promising as fractures are essential for enhanced productivity in carbonate reservoirs.
Adding further interest, minor hydrocarbon shows have been encountered in the carbonate formations with up to 0.1765% methane, ethane and propane noted in the Lunz Formation where 9 5/8 inch casing has been set.
The plan ahead
ADX is currently drilling out of the 9 5/8 inch casing at a depth of 1,028m in the 8 1/2 inch hole.
It will then drill ahead to the main target which is between 1,100m and 1,800m measured depth.
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
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