New Natural Gas Well in Upper Austria: ADX Expands Exploration Area in Molln
The Australian-Austrian energy company ADX Energy has received approval from the Austrian authorities to significantly expand its exploration area in the Upper Austrian district of Kirchdorf an der Krems. The measure relates in particular to the so-called Welchau area in the municipality of Molln, which had already come into focus last year with an initial well.
The energy company ADX has received permission to expand its exploration areas in Upper Austria. / Picture: © Wikimedia Commons, Christoph Waghubinger, CC BY-SA 3.0 Austria
According to a recent company announcement, the Austrian Ministry of Finance (BMF)—responsible for mining rights—has approved the reallocation and expansion of concession areas. ADX speaks of a “significant improvement in prospectivity,” as the now extended area is considered particularly promising based on seismic and geological data. A further well is to be drilled in the coming months. However, ADX is currently withholding precise details about the location.
New concession, new opportunities
With the current decision, ADX was able to substantially expand its rights in the “Welchau Anticline” area. This geological structure in the Limestone Alps region had already provided indications of potentially commercially exploitable natural gas deposits in earlier investigations. The new license allows the company to carry out seismic surveys and test drilling over a significantly larger area than before.
According to the company, the Welchau area was upgraded at the same time, while a less promising area was relinquished as part of the license negotiations. According to ADX, this restructuring has almost tripled the area with a high geological prospectivity. The ongoing soil analyses and seismic studies will now decide exactly where to drill. A decision on the exact drilling location is expected in the course of the summer.
Discretion due to public debate
The company was cautious about details of possible drilling locations. The reason: in the past, vague hints about planned drilling activities had already led to intense discussions in the affected communities. Criticism arose in the town of Molln in particular when ADX drilled its first exploratory well there last year. Critics not only fear interference with the landscape but also express concerns about possible effects on groundwater and ecosystems.
ADX, on the other hand, emphasizes that all measures are carried out by the highest environmental standards. Efforts are being made to inform the public transparently, but a certain degree of confidentiality must be maintained in the early planning phase so as not to jeopardize objective processes through emotional debates.
Regional reactions: Between hope and skepticism
While some local voices emphasize the economic potential of drilling - for example in terms of jobs and municipal revenue - others express considerable concerns. Representatives of the municipality of Molln are therefore calling for regular public information events and independent environmental impact assessments. Environmental organizations such as GLOBAL 2000 and the Nature Conservation Association have also announced that they will keep a close eye on the project.
The drilling site is located near the Kalkalpen National Park. Greenpeace, Umweltdachverband, Alpenverein, and Naturschutzbund had lodged an appeal against the approval of the test drilling by the nature conservation authority with the Upper Austrian Provincial Administrative Court.
Natural gas as a strategic raw material
In the geopolitical context, the debate about domestic gas production has taken on new urgency. Following the decline in Russian imports since the war of aggression against Ukraine in 2022, Austria - like many European countries - is increasingly seeking to diversify its energy sources. While a phase-out of fossil fuels is planned in the long term, natural gas is still considered an important energy source in the transition phase.
In this transition phase, ADX is positioning itself as a potential supplier of “regional and reliable energy”. The coming months will show whether the Welchau project can fulfill this claim. The first test well could be drilled by the end of this year.