ADX Energy Ltd.: Operations Update

Structural Cross Section Wel-1 and Molln-1; ADX Energy Ltd.

[ Report ]

Wien (pta010/06.11.2024/09:40) - "Workover rig and testing equipment has been mobilised to prepare the Welchau-1 discovery well for production testing"

Key points:

* ADX holds an 75% economic interest in the Welchau-1 discovery and other emerging prospects in the Welchau Investment Area located in ADX' ADX-AT-II licence in Upper Austria.
* All necessary approvals have been received to commence flow testing operations on the Welchau-1 discovery well for the period commencing from the 30th of October 2024 until 31st of March 2025.
* A workover rig was mobilised to the Welchau-1 drill site to start well completion operations prior to well flow testing which is expected to commence during the second half of November 2024. The planned program is to test the two major Triassic – Mesozoic age reservoirs encountered by the Welchau-1 well, starting with the deeper Steinalm formation and then the shallower Reifling Formation.
* The Welchau-1 well encountered hydrocarbon shows over a 450-metre interval intersecting three primary carbonate reservoirs that are considered promising for testing and ongoing appraisal. Operations were suspended on 28th of March 2024 to comply with the conditions of environmental permits limiting drilling and testing operations to the Austrian winter months from 1st of October 2023 to 31st of March 2024.
* Data recovered from the well during drilling and the subsequent evaluation program has been used to assess the potential of the Welchau discovery and design the upcoming test program.
* The hydrocarbons discovered at Welchau are likely to be a high gravity (43.6° API) light oil with associated gas rather than a liquids-rich gas discovery as it was predicted prior to drilling.
* A revised range of Prospective Resources has been estimated using a probabilistic methodology for oil and associated gas in million of barrels of oil equivalent (MMBOE) (refer ASX reporting date 26 September 2024).

(1)Prospective Resourcesare those estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) related to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

* ADX will provide weekly operations updates to shareholders and testing results as they become available.

For further details please see the PDF file.

(Ende)