Highlights

  • ADX Energy has signed a binding option agreement with AIM-listed Empyrean Energy to fund part of its GOLD Gas Prospect in Upper Austria.
  • Empyrean will earn a 10% economic interest in the GOLD Cluster Area by funding 20% of the costs to drill and test the GOLD-1 well.
  • The deal includes a non-refundable EUR50,000 option fee and an earn-in obligation of EUR555,400, with well costs capped at EUR2,777,000.
  • GOLD-1 is the second well in ADX's shallow gas program, following the HOCH-1 discovery well, and is planned to spud in the fourth quarter of 2026.

ADX Energy Ltd (ASX:ADX) has signed a binding option agreement with AIM-listed Empyrean Energy plc, under which Empyrean will help fund the company's next shallow gas well in Upper Austria in exchange for an economic interest in the surrounding prospect. The deal brings an industry partner onto the GOLD Gas Prospect as ADX prepares to drill its second well in the program later this year.

Terms of the Empyrean Funding Deal

Under the binding option agreement, Empyrean Energy will earn a 10% economic interest in the GOLD Cluster Area, held under the ADX-AT-II licence in Upper Austria, in return for funding 20% of the costs to drill and test the GOLD-1 well. The agreement includes a non-refundable option fee of EUR50,000, with Empyrean's broader earn-in obligation set at EUR555,400, equivalent to its 20% share of the well's costs. Total well costs for drilling, completion and testing are capped at EUR2,777,000. ADX VIE, a Wholly Owned Subsidiary of ADX Energy, remains the operator of the well and the surrounding licence area. The parties have exclusivity to finalise a full Energy Investment Agreement until 16 October 2026, the option's expiry date.

GOLD-1 Follows the HOCH-1 Discovery

GOLD-1 is the second well in ADX's shallow gas exploration program in Upper Austria, following the HOCH-1 discovery well, which is currently in production testing. The GOLD-1 well is planned to spud in the fourth quarter of 2026, targeting the same shallow gas play that delivered the HOCH-1 discovery. Executive Chairman Ian Tchacos is the nominated management contact for the transaction, reflecting the company's direct oversight of the funding arrangement as it moves toward drilling.

What Happens Next

With the option agreement signed, ADX and Empyrean are now working to finalise a full Energy Investment Agreement ahead of the option's expiry on 16 October 2026. ADX has said it will provide further updates to the market as the transaction progresses, including confirmation of the final funding agreement and, subsequently, drilling progress at GOLD-1 once the well is spudded in the December quarter.

Conclusion

The option agreement with Empyrean Energy gives ADX Energy (ASX:ADX) an industry partner to help fund the GOLD-1 well, spreading the cost of testing the GOLD Cluster Area while the company retains operatorship through its ADX VIE subsidiary. With HOCH-1 already in production testing and GOLD-1 due to spud in the December quarter, the coming months should bring further clarity on both the funding arrangement's finalisation and the underlying exploration results. As with any funding agreement tied to a future well outcome, the ultimate value of the deal for both parties will depend on what GOLD-1 finds, and shareholders may want to watch for confirmation of the final Energy Investment Agreement as the near-term milestone.