Empyrean Energy plc (AIM: EME) has signed an Exploration and Investment Agreement with ADX VIE GmbH to acquire a 10% economic interest in the GOLD Cluster gas prospects in Upper Austria, ahead of a planned drilling programme targeting 8.3 billion cubic feet of natural gas in January 2027.
The agreement, executed on 30 October 2026, will see Empyrean fund 20% of the drilling and testing costs for the GOLD-1 well, equivalent to €555,400, in exchange for a 10% economic interest in the wider GOLD Cluster Area.
The transaction provides Empyrean with exposure to three shallow gas prospects — GOLD, ZAUN and GRAB — covering approximately 73 square kilometres within the ADX-AT-II exploration licence in Austria’s Molasse Basin.
GOLD-1 is scheduled to begin drilling during the first week of January 2027, with operator ADX having secured a drilling rig and commenced construction of the well site.
The well will target a mean prospective gas resource of 8.3 billion cubic feet (Bcf), although drilling will be required to establish whether commercially recoverable gas is present.
The programme follows the successful drilling of ADX’s nearby HOCH-1 gas discovery in May 2026, which has subsequently tested at approximately 3.4 million standard cubic feet of gas per day, equivalent to around 565 barrels of oil equivalent per day.
The HOCH-1 results have provided encouragement for the broader shallow gas exploration programme, although they do not guarantee a similar outcome at GOLD-1.
The GOLD Cluster is located close to existing gas infrastructure, potentially providing development advantages should exploration establish commercially viable resources.
The agreement comes against a backdrop of elevated European natural gas prices, with Empyrean citing prices of approximately €105 per megawatt-hour, the highest levels since 2022.
European gas storage levels were also reported at approximately 75% of capacity, their lowest for this time of year since 2017, highlighting continued concerns about regional energy security.
Under the agreement, Empyrean’s initial €555,400 funding commitment represents 20% of the capped €2.777 million drilling, completion and testing budget for GOLD-1.
Once Empyrean has fulfilled its earn-in obligations, it will hold a 10% participating interest in a partnership established to explore, develop and potentially produce gas from the GOLD Cluster.
Following completion of the earn-in, Empyrean will be responsible for 10% of subsequent costs incurred by the partnership.
Any unused portion of its initial funding commitment can be applied towards Empyrean’s share of a future well within the licence area.
Empyrean is required to make an initial payment of €70,600 within five days of the agreement, reflecting its share of pre-drilling expenditure after deducting the €50,000 option fee already paid.
The remaining funding will support drilling, completion and testing activities as the GOLD-1 programme advances.
Chief Executive Gaz Bisht described the agreement as an important milestone in Empyrean’s strategy of securing exposure to near-term gas exploration and development opportunities.
He highlighted the commercial structure, which provides the company with an interest in the entire GOLD Cluster rather than solely the initial exploration well.
Bisht also pointed to the encouraging HOCH-1 discovery and the opportunity to participate in potential European gas production and future revenues.
For investors, the agreement provides Empyrean with a defined entry into an Austrian gas exploration programme at a relatively modest initial funding commitment, while offering exposure to additional prospects across the wider licence area.
However, the 8.3 Bcf GOLD-1 target remains prospective rather than a confirmed resource or reserve, and commercial success will depend on drilling results, reservoir performance, gas prices and future development expenditure.
Attention will now turn to completion of GOLD-1 site preparations and the planned January 2027 drilling campaign, as Empyrean Energy seeks to establish a new source of potential European gas production alongside its existing exploration interests.
