ADX Energy Ltd.: Anshof-2 Appraisal Well Rig-up Commenced in Preparation for Drilling

Wien (pta019/06.11.2023/10:47 UTC+1)

"The well could provide a unique combination of immediate cash flow growth as well as large reserves increase"

Key points in this release:

• Rig up of the RED Drilling & Services GmbH (RED) E-202 rig on the Anshof-2 well has commenced for a planned 11 November 2023 spud date. The well is located in the Anshof Discovery Area within the ADX-AT-II licence in Upper Austria (refer figure 1 in the PDF file).
• Anshof-2 will target thicker mapped sands with a high angle well (providing a large reservoir intersection) that is expected to result in high production rates. This well is approx. 80 metres down dip of and approx. 1.8 km south-east from the crestal Anshof-3 discovery well. In the success case this would result in a significant increase in proven and probable (2P) reserves (refer figure 2 in the PDF file).
• The well will test the currently prognosed oil water contact defined by an independent audit which corresponds to a 2P reserves base of 5.2 million barrels of gross oil equivalent (BOE)1 reserves – refer to ASX Release dated 31 October 2022. A successful well is expected to extend the field 2P reserves base towards the large independently audited 3P and 3C upside potential of 26 million barrels*.
• Anshof-2 is the second well to be drilled from the same rig site as the successful Anshof-3 discovery well which has produced since October 2022 at a steady rate of approximately 120 barrels of oil per day (facility constrained) through an early production unit (EPU).
• A permanent production facility (PPF) will be mobilised and set up following the drilling of Anshof-2 which will enable the production of Anshof-2 and Anshof-3. The PPF will replace the previous rented EPU. The PPF has a total capacity 3,000 barrels per day which provides ample capacity to efficiently and rapidly scale up the Anshof field development including the Anshof-1 well planned in Q2 2024.
• ADX Energy Ltd (ADX) has a 60% economic interest in the well and ADX' partner MND Austria a.s (MND) will fund the remaining 40%. Xstate Resources Limited (XST) has elected not to participate in the well. ADX and MND will fund XST's share of well costs on 50:50 basis and will in turn retain the right to 60% and 40% respectively of production from the well unless XST opts to buy back into the well at a premium of 400% to the well cost.
• ADX share of drilling, tie-in completion costs will be funded from back costs payments already received from MND as well as drilling cost funding commitments in accordance with the Anshof Investment Agreement with MND announced on 7th of August 2023.

ADX Executive Chairman, Mr Ian Tchacos, said, "The Board of ADX is pleased with the commencement of drilling operations on the Anshof-2 well. The well is an important milestone for the Anshof project and provides ADX with the opportunity to establish a large reserves base as well as a potentially large increase in oil production rate. A successful well at Anshof-2 may provide the reserves base for a multi well development with a potentially large build up in production rate and cashflow. It is particularly pleasing for ADX shareholders that ADX' share of well costs will be funded by Anshof Investment Agreement with MND. The non-participation of XST in the Anshof-2 well provides the opportunity for ADX to increase its interest in the well alongside our new partner MND.

*Proved and Probable Development Justified Reserves including associated gas produced from the field assessed in accordance with SPE-PRMS 2018 Petroleum Resources Management System.

For more details please view the PDF file.

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Emitter:	ADX Energy Ltd. Ölzeltgasse 3/8 1030 Wien Austria
Contact Person:	DI Paul Fink
Phone:	+43 (0)676 6893465
E-Mail:	paul.fink@adx-energy.at
Website:	www.adx-energy.com
ISIN(s):	AU000000ADX9 (Share)
Stock Exchange(s):	Free Market in Berlin, Frankfurt, Hamburg, Munich, Stuttgart, Tradegate
Other Stock Exchanges:	Australian Securities Exchange (ASX), Sydney