Overview of Welchau-1 well operations

ADX Energy Ltd (ASX: $ADX) has successfully concluded the drilling operations for the Welchau-1 well in the ADX-AT-II exploration licence in Upper Austria. The well, which was drilled using the RED E200 drill rig, has been cased and temporarily suspended for future testing. Preliminary data analysis of recovered hydrocarbons from downhole sampling indicates condensate rich gas to light oil from the Steinalm formation.

Executive Commentary on Welchau-1 Well Operations

The importance of successfully drilling, evaluating and temporarily suspending the Welchau-1 well for future testing ahead of schedule and below budget by our operations team cannot be underestimated. ADX has now commenced a programme of extensive analysis work that will culminate in post drill analysis of the resource potential for the Welchau discovery. Recovering hydrocarbons from the impaired down hole sampling programme provides further valuable data. We will continue to provide data analysis from the drilling of the Welchau-1 well, as we look forward to the flow testing of the exceptionally important discovery on behalf of the Republic of Austria.

Summary of Welchau-1 Well Operations

ADX Energy Ltd has successfully concluded the drilling operations for the Welchau-1 well, which was carried out using the RED E200 drill rig in the ADX-AT-II exploration licence in Upper Austria. The well has been cased and temporarily suspended for future testing, with preliminary data analysis indicating condensate rich gas to light oil from the Steinalm formation. Extensive analysis work has commenced on well data, including hydrocarbon shows, formation cuttings, petrophysical borehole log data, formation fluid samples, and formation core. The results of the analysis will be used to update the resource range for the Welchau discovery and design the testing program for the Welchau-1 well. ADX has also 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. The planned Welchau-1 well test in Q4 2024 is expected to confirm the hydrocarbon characteristics, determine the well productivity, the potential connected volumes to the well, and ultimately estimate recoverable resource volumes from future potential development wells.