Following the submission of drilling program documentation, expert opinions and a public hearing at the Welchau drill site in Upper Austria, the Mining Authority has issued a drilling permit for the Welchau-1 well on behalf of the Ministry of Finance of the Republic of Austria (Bundesministerium für Finanzen) (BMF).

This permit will allow ADX Energy Ltd to proceed with the drilling and testing of the Welchau-1 well and a longer-term production test — if required.

Once the project has received an environmental clearance from an independent expert, ADX Energy Ltd can proceed with the company’s plan to commence drilling in Q4 2023.

All drilling and testing activities must take place between 1 October 2023 and 31 March 2024, utilising two pre-approved drilling and workover rigs that have cleared safety and noise requirements as well as meet environmental emission standards.

The well has a best technical Prospective Resource of 807 billion cubic feet of gas equivalent and is close in proximity to the Moln-1 well that resulted in positive reports of quality gas in 1989.

ADX Executive Chairman Ian Tchacos said: “The Board of ADX is very impressed and encouraged by the transparent and efficient permitting process conducted by the Austrian Mining Authority for evaluating extensive technical, legal and environmental documentation, as well as openly addressing relevant stakeholder and community interests.

“The Welchau exploration project is an exceptional domestic energy supply and economic opportunity for the State of Austria. ADX and our partner MCF Energy Ltd are committed to responsible gas exploration. 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,” said Tchacos.

The program is expected to last for approximately 39 days.