ADX Energy Ltd (ASX: $ADX) Welchau-1 Gas Exploration Well Update

ADX Energy Ltd (ASX: $ADX) has commenced drilling the Welchau-1 gas exploration well using the RED Drilling & Services GmbH (RED) E200 drill rig in the ADX-AT-II exploration licence in Upper Austria. The well was spudded on the 24th of February and as of 6.00 am Central European Time (CET) on the 25th of February, drilling operations were underway at a depth of 60 metres.

Executive Chairman's Commentary on Welchau-1 Gas Exploration Well

The Board of ADX is very pleased to confirm the commencement of drilling at the Welchau-1 well. The Welchau-1 well has attracted extensive media attention, with positive reports in Austrian news due to the growing recognition of the importance of gas exploration in Austria. This is seen as a means to provide security of supply, economic benefit, and lessen the dependence on Russian gas imports.

Summary of Welchau-1 Gas Exploration Well Update

ADX Energy Ltd (ASX: $ADX) has initiated drilling at the Welchau-1 gas exploration well, targeting the mid Triassic age Steinalm formation with exceptional gas resource potential. The well is located in Upper Austria and is proximal to gas pipelines, with estimated best technical Prospective Resources of 807 BCFE (134 MMBOE). The project has received extensive media exposure and environmental clearance, with overwhelming support from the local community. ADX has executed an Energy Investment Agreement with MCF Energy Ltd. to fund 50% of the well costs, aiming to earn a 25% economic interest in the Welchau Investment Area. The company is committed to ensuring that natural gas exploration and potential production align with environmental protection and local tourism. The drilling and evaluation program is expected to take approximately 39 days, with the main target depth between 1100m and 1800m measured depth. Further exploration appraisal and evaluation are required to determine the existence of significant moveable hydrocarbons. ADX confirms that the technical and reserves information relating to Austria contained in this release has been reviewed by a qualified geophysicist with 30 years of technical, commercial, and management experience in exploration for oil and gas resources. The company is reporting reserves and resources in accordance with the Petroleum Resources Management System (PRMS) and prospective resource classifications. The estimates have associated risks of discovery and development, and further exploration is needed to confirm the recoverable quantities. ADX aims to reduce dependency on Russian natural gas imports, increase gas supply security, diversify gas supply, and fulfill the Austrian federal mandate to explore and produce hydrocarbons.