ADX Energy’s hunt for 807 billion cubic feet (Bcf) of European gas is continuing to gather steam, with the drilling of its Welchau-1 exploration well in Austria nearing the company’s targeted geological structure.

Management confirmed this morning that its drilling at the site had now reached 640m beneath the surface, edging closer to its target depth of between 1100m and 1800m where gas reservoirs could be lurking.

The drilling is aiming to intercept the mid-Triassic age Steinalm formation where gas was discovered at the nearby Molln-1 well back in 1989, yielding condensate-rich, pipeline-quality gas at a rate of 4 million standard cubic feet (MMscf) per day. The Welchau well was spudded on February 24 and is being drilled within the company’s “ADX-AT-II” exploration licence with RED Drilling & Services’ “E200” rig.

Management believes Welchau represents a “world-class” prospect that is characterised by exceptional potential to host gas resources at a relatively shallow depth and in proximity to existing gas pipelines. Including Welchau, ADX has identified no less than 20 oil and gas prospects across its 1020-square-kilometre tenure in Upper Austria.

The drilling of Welchau-1 falls under a farm-in agreement with MCF Energy, which will fund 50 per cent of the well up to €5.1 million (AU$8.5 million) to earn a 25 per cent interest in a section of the landholdings known as the Welchau Investment Area.

ADX will hold a 75 per cent interest in the Welchau Investment Area once MCF has met its funding obligations. The company will retain full ownership of its remaining exploration licenses in Upper Austria, except for ground that surrounds its Anshof well discovery.

Welchau-1 is expected to drill to a total depth of between 1500m and 1900m, with the campaign projected to last about 39 days from its launch.

ADX’s hunt for gas appears to be perfectly timed with energy security becoming one of the most important issues in Europe following Russia’s invasion of Ukraine.

According to the company, Austria imports nearly 90 per cent of its overall gas requirements, with the majority still sourced from Russia. So, a new gas discovery in the heart of Europe could be transformational for the region and has the potential to propel ADX onto a few radars should its drilling at Welchau hit the mark.

Management expects to be in a position to deliver a further update next Monday.