ADX Energy (ASX: $ADX) drilling update

ADX Energy Ltd (ASX: $ADX) is set to commence drilling operations at the Welchau gas exploration project in the ADX-AT-II licence in Upper Austria. The well site construction at the Welchau-1 drill site is complete, and the RED Drilling & Services GmbH (RED) E202 drilling rig is expected to become available to ADX at the end of next week. The drilling is anticipated to commence during the following week and is estimated to take approximately 39 days. Additionally, MCF Energy Ltd. will fund 50% of the well costs up to a cap of EUR 5.1 million to earn a 25% economic interest in the Welchau Investment Area, with ADX retaining a 75% economic interest upon completion of MCF's funding obligations.

Executive commentary on Welchau gas prospect

We are poised to commence operations at Welchau. On behalf of the Board, I would like to thank our Austrian team for their diligence in securing all the necessary regulatory approvals and achieving operational readiness to drill this important gas well. Achieving regulatory approvals at Welchau has exceeded the usual less than 6 month licensing process in Austria due to greater environmental sensitivities at the Welchau location as a result of its proximity to an area of touristic interest and a small nature protection area. Despite these additional environmental and community considerations, the licensing process in Austria has been far more predictable and timely than other jurisdictions such as many other parts of Europe, the U.K. and Australia where such approvals can take up to two years.

Summary of ADX Energy's drilling update

ADX Energy Ltd (ASX: $ADX) is making significant progress in its drilling operations at the Welchau gas exploration project. The completion of well site construction and the imminent mobilisation of the RED E-202 drilling rig indicate the company's commitment to advancing its exploration activities. With the support of MCF Energy Ltd., ADX is well-positioned to fund the drilling costs and secure a substantial economic interest in the Welchau Investment Area. The Welchau gas prospect, with its exceptional gas resource potential and proximity to gas pipelines, presents a promising opportunity for ADX. The company's focus on local content and adherence to safety and environmental standards further underscores its dedication to responsible and efficient operations. As ADX prepares to commence drilling, the successful execution of this phase could significantly impact the company's future prospects and contribute to its corporate strategy of expanding its presence in the energy sector.