Start further tests

ADX now suspects crude oil in Molln instead of gas

Gas was originally drilled in Molln on a trial basis.

(Bild: Haijes Jack)

Following the discovery of gas in March during test drilling in Molln near the Kalkalpen National Park, ADX Vie GmbH is now preparing further tests as the responsible nature conservation authority gave the green light on Friday. According to initial analyses, the discovery is light crude oil, not natural gas as originally assumed.

"With the planned tests, ADX Energy wants to determine the quality, nature and quantity of the hydrocarbon deposits found in the spring," explained ADX Austria CEO Alan Reingruber. In March, the subsidiary of the Australian-listed exploration company ADX Energy was forced to suspend its work - which was opposed by environmentalists - due to nature conservation regulations (among other things, all drilling and testing work was ordered to be completed by March 31).

Last Friday, it received a positive decision from the responsible nature conservation authority for the outstanding tests at the Welchau-1 exploratory well in Molln.

Data situation is uncertain
In spring, hydrocarbons were detected over a drilling distance of 450 meters. According to initial analyses, this was probably light crude oil with an API density of 43.6° and associated gas, and not liquid-rich natural gas, as originally assumed on the basis of the historic Molln-1 well, the company said. Due to the uncertain data situation, ADX is unable to provide a definitive resource range for the time being.

Further tests should provide clarity
In the upcoming tests, the two larger reservoirs (Steinalm and Reifling formations) are to be examined and analyzed in order to confirm the detailed hydrocarbon properties, determine the well productivity and volumes and support an estimate of the potential resource volumes, among other things.

"The high quality oil now expected in Welchau could be very valuable in commercial quantities, as the drilling depth is shallow and the deposit is locally close to the required infrastructure," says ADX CEO Ian Tchacos.