ADX Energy Ltd.: Anshof Oil Project Update

ANS-3 and ANS-2A at Anshof permanent production facility; ADX Energy Ltd.

[ Report ]

Wien (pta022/12.12.2024/10:46) - Anshof-2A Commencement of Production

* On 17th of September 2024 ADX announced that the Anshof-2A ("ANS-2A") appraisal well intersected a 6.5-metre ("m") net vertical oil column in high quality Eocene aged sandstone reservoirs. ADX is the operator and has a 60% economic interest in the well.
* The oil intersection at ANS-2A is approximately 3 times that of the Anshof-3 ("ANS-3") discovery well which has been producing at approximately 105 barrels per day since October 2022.
* The ANS-2A well has been completed as a production well, a rod pump has been installed and the well has been tied in to Anshof permanent production facility. Installation work includes the tie-in to a telemetry control system which enables the entire Anshof production system to operate unmanned.
* The ANS-2A well has commenced production at an oil rate of 70 barrels per day and a water rate of 134 barrels per day increasing current Anshof Oil Field production to an oil rate of approximately 170 barrels per day including the existing production from the ANS-3 well,100 bopd net to ADX*.
* The flow performance of ANS-2A (oil and water) is excellent however initial water rate is considered to be relatively high given the oil column thickness encountered in the well above the oil water contact. ADX will monitor ANS-2A to determine the long-term production trend over time with a view to increasing oil production.

Anshof Area Appraisal and Exploration Opportunities

* ADX is also pursuing further production growth from appraisal potential within the Anshof Field Area ("Anshof Appraisal Potential") and near field exploration in the ADX-AT-II exploration licence ("Near Field Exploration") which is proximal to the Anshof field but outside the Anshof Field Area.
* ADX continues to assess Anshof Appraisal Potential with its partner MND. In accordance with the Energy Investment Agreement relating to the Anshof Field Area completed on the 18th of September 2023; MND is committed to fund 60% of a further appraisal well within the Anshof Field Area.
* ADX has mapped a number of Near Field Exploration prospects held at 100% equity which ADX is maturing for drilling. These prospects may be co-funded via future energy investment partnership arrangements.
* Anshof Appraisal Potential and Near Field Exploration provides high value growth potential that can be rapidly translated into additional oil production and cash flow for ADX.

*ADX receives 60% of gross production from ANS-3 and ANS-2A. ADX will receive 60% of ANS-3 production until the repayment of capital investments including the permanent production facility made by ADX on behalf of XST.

For more details please see the PDF file.

(Ende)