Overview of Welchau-1 Well Discovery

ADX Energy Ltd (ASX: $ADX) has announced the discovery of condensate rich gas at the Welchau-1 well in the ADX-AT-II exploration licence in Upper Austria. The well has intersected 115 metres of condensate rich gas shows in the primary target formation at a depth close to the pre-drill prognosis. The drilling operations commenced on the 24th of February using the RED Drilling & Services GmbH (RED) E200 drill rig, reaching a total depth of 1733 metres measured depth (MD) by the 17th of March.

Executive Commentary on Welchau-1 Well Discovery

The Welchau gas discovery has the potential to yield an exceptional gas resource for ADX, its partner MCF, and the Republic of Austria. The results are in line with pre-drill expectations, confirming the exceptional geological and technical work by our Vienna team supported by local and international experts. Over the coming week, ADX plans to execute its success case evaluation program for the well, including electric line logging, down hole sampling, inflow testing, and pressure measurement required to confirm the reservoir characteristics and the hydrocarbon composition.

Summary of Welchau-1 Well Discovery

The Welchau-1 well has encountered 115 metres of liquids rich gas column within the primary target 'Steinalm Formation' at a depth between 1452 metres and 1567 metres measured depth (MD). The well has also encountered 380 metres of effective seal 'The Lunz Formation' above the main target, mitigating the key risk of seal quality and thickness. The structure of the Welchau well is as predicted, and the gas composition is similar to that tested at the nearby Molln-1 well. ADX has executed an Energy Investment Agreement with MCF Energy Ltd. to fund 50% of Welchau-1 well costs up to a well cost cap of EUR 5.1 million to earn a 25% economic interest in the Welchau Investment Area. Upon completion of MCF's funding obligations, ADX will hold a 75% economic interest in the Welchau Investment Area.