ADX Energy Ltd (ASX:ADX) announces commencement of Lichtenberg-1 gas exploration well drilling

ADX Energy Ltd (ASX:ADX) has announced the commencement of drilling for the Lichtenberg-1 gas exploration well in Upper Austria. The well, located within the ADX-AT-I exploration licence, was spudded at 07:00 am Central European Time on the 26th of September 2024. MND Austria a.s. (MND) will fund the first EUR 4.5 million of well costs in addition to a previous EUR 0.4 million cash payment to earn a 50% interest in the well and part of the ADX-AT-I licence.

Executive Commentary on Lichtenberg-1 Gas Exploration Well

The Board of ADX is delighted to follow on from the successful drilling of the Anshof-2A oil appraisal well with the first gas prospect to be drilled in the ADX-AT-I exploration licence targeting potentially high productivity Oligocene sandstone reservoirs. Success at LICHT-1 could lead to a rapid development of a new production and revenue stream for ADX and its partner MND. ADX believes there is a high chance of success at LICHT-1. Moreover, several near-by, follow up exploration prospects could lead to very significant reserves growth and long-term gas production.

Summary of Lichtenberg-1 Gas Exploration Well Commencement

The commencement of drilling for the Lichtenberg-1 gas exploration well marks a significant milestone for ADX Energy Ltd (ASX:ADX) as it targets potentially high productivity Oligocene sandstone reservoirs. MND Austria a.s. will fund the initial EUR 4.5 million of well costs in exchange for a 50% interest in the well and part of the ADX-AT-I licence. The well is expected to take approximately 30 days to drill to a total measured depth of approximately 2900 metres, with the first Oligocene reservoirs expected from around 2000 metres. Success at LICHT-1 could lead to a rapid development of a new production and revenue stream for ADX and its partner MND, with the potential for significant reserves growth and long-term gas production. The company's ambitions include reducing Austria's high reliance on imported Russian gas, and the success at LICHT-1 and its follow-up prospects could significantly impact ADX' gas reserves and production.