ADX Energy Ltd.: Sicily Channel Permit Award

[ Report ]

Wien (pta009/22.01.2025/09:37) - "The maximum permit area has been offered and accepted. Final formal award is expected during Q1 2025."

Key points:

* ADX Energy Ltd via its 100% subsidiary Audax Energy S.r.l. made an application at a 100% interest to the Italian Ministry of Environment and Energy Security (Ministry) for the "d 363 C.R-.AX" permit (Permit) in the Sicily Channel, Offshore Italy. The application has been delayed since 2018 due to a moratorium on the award of new exploration licenses in Italy.
* Reflecting current national energy supply priorities, the Ministry has now verified the technical, organisational and economic capacity of Audax, offering the Permit with the maximum area of 346 km2. The Permit has been offered and accepted in accordance with the current regulatory framework focusing on gas exploration. The formal approval of the Permit is expected within the next two months.
* ADX has previously advised that the best technical prospective resource potential of five high graded gas prospects was 369 BCF (refer ASX announcement 30 August 2022).
* The Permit is highly prospective for clean pure gas and future discoveries are likely to be commercially attractive. The key attributes for the Permit can be summarised as follows :
* Proven existence of sweet gas in the Permit confirmed by several historical wells (i.e. Nilde-2 a historic well targeting deeper oil production).
* Highly productive sandstone reservoirs with shallow drill (700 to 1300 m) and moderate water depths (100 m).
* Availability of a large, high quality historical 2D seismic data set that can be reprocessed.
* Attractive fiscal terms (10% royalty + 29% Effective Tax Rate), in conjunction with strong demand for Clean Gas (Note 1) that is subject to the high prevailing gas prices in Italy and Europe generally.

Note 1: Clean Gas is hydrocarbon gas that is produced and processed to high European Union environmental standards limiting both CO2 and Methane emissions.

* There are flexible permitting terms and low financial commitments.
* There are two proximal and geologically similar producing field areas (one onshore and one offshore), contributing to excellent local gas pipeline infrastructure (refer Figures 1 and 2), and;
* Italy has a positive, pro-development political environment in effect which supports European Clean Gas since the election of Giorgia Meloni and the formation of a centre-right coalition.

For further details please see the PDF file.

(Ende)