ADX Energy Ltd.: Lichtenberg-1 Gas Exploration Well Commences Drilling in Upper Austria

LICHT drill site; ADX Energy Ltd.

[ Report ]

Wien (pta022/27.09.2024/12:55) - "Potential for significant gas production and net cash flow growth within a year of discovery. Several follow up and close by 3D seismic defined gas prospects could further increase the targeted gas reserves."

"MND Austria a.s. (MND) will fund the first EUR 4.5 million of Lichtenberg well costs in addition to a previous EUR 0.4 million cash payment to earn a 50% interest in the well and part of the ADX-AT-I licence."

Key points:

* The Lichtenberg-1 ("LICHT-1") gas exploration well, located in the ADX-AT-I licence in Upper Austria (refer to Figure 1 in the PDF file), spudded at 07:00 am Central European Time on the 26th of September 2024. ADX is the operator and will retain a 50% economic interest in the well and the MND Investment Area after completion of earn in obligations by MND. ADX will retain a 100% interest in the remainder of the ADX-AT-I licence (refer to Figure 1 in the PDF file).
* The RED Drilling & Services GmbH (RED) E-202 rig is being used to drill the LICHT-1 well (refer to Figure 2 in the PDF file). The same rig was recently used to drill the successful Anhof-2A oil appraisal well. The LICHT-1 well is the second of a two well program which follows the Anshof-2A well in the ADX-AT-II licence (refer to Figure 6 in the PDF file).
* The LICHT-1 well will target an Upper Oligocene sandstone reservoir and two slightly shallower, geologically similar reservoirs. The targeted sandstone reservoirs can be highly productive based on offset production wells in the area.
* The LICHT-1 well is expected to take approximately 30 days to drill to a total measured depth ("MD") of approximately 2900 metres. The first Oligocene reservoirs are expected from around 2000 metres MD, with the main target reservoir expected from approx. 2500 metres MD. If successful the detailed logging, casing and suspension of the well will take approximately another 10 days.
* In addition to the LICHT Prospect there are multiple, similar, close by, follow-up prospects which are also covered by high quality 3D seismic. These could be follow up drilling targets that would allow ADX and its partner to develop a large reserve with long term gas production.
* Economics for successful gas exploration at this location are potentially excellent due to high productivity reservoirs, close proximity to open access pipelines (approx. 4 km) and excellent central European gas pricing (approx. US$15 per MCF equivalent).
* An Operations Update Report will be provided on weekly basis. Well drilling results will be provided as they become available.

For further details please see the PDF file.

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