ADX Energy Ltd.: Operations Update: Welchau-1 Production Testing Progress Report

Wien (pta007/20.11.2024/09:34 UTC+1)

"Initial flows from first test interval yields a combination of drilling mud, formation water, gas and traces of oil at a liquid rate between 240 to 290 barrels per day."

Key points:

• ADX holds an 75% economic interest in the Welchau-1 discovery and other emerging prospects in the Welchau Investment Area located in ADX' ADX-AT-II licence in Upper Austria.
• The RED Drilling & Services W-102 workover rig (Workover Rig) has been set up and used to install a testing completion string in the Welchau-1 well.
• The well has been perforated over two intervals in the Steinalm Formation between 1452.5 metres to 1663.5 metres Measured Depth (MD) and 1474.5 metres to 1480 metres MD. The perforations were carried out underbalance (i.e. with a pressure drawdown) using high perforation density casing guns with a pre-flow conducted to clean up the well ahead of further testing.
• Following well perforation, gas was observed at surface followed by an unassisted sustained stable rate of liquid flow of drilling mud, likely contaminated formation water and some oil traces. The observed liquid rate has been between 240 to 290 barrels per day from the unstimulated perforated intervals.
• The perforated intervals are over fractured zones in the Steinalm Formation where hydrocarbon shows were observed during drilling and above where oil was recovered from a down hole modular formation dynamic tester (MDT), intervals where hydrocarbon influxes were observed whilst drilling as well as the interval where a formation core was recovered with fluorescence.
• The well is being flowed during daylight hours, surface fluid sampling is ongoing and a down hole production logging tool (PLT) is being run in the well to diagnose flow contributions from perforations, pressures and fluid gradients.
• Surface sampling and analysis of fluids recovered as well as PLT results analysis is ongoing to determine the type and flow of liquids produced into the well at this level. This analysis is required to understand fracture system flow behaviour, recovery of mud losses from drilling, source and extent of formation water and hydrocarbon charge in the complex Steinalm Formation fracture system.
• The lack of hydrocarbons encountered in the well at this interval is disappointing and contrasts with hydrocarbon shows recorded while drilling the well and oil samples recovered from the MDT tester. More analysis is required to understand what appears to be a productive, extensive, well-connected and permeable fracture system in this part of the Steinalm Formation that is now interpreted to be drawing formation water into the well.
• The current forward plan is to complete the acquisition of the PLT data followed by the testing of the shallower Reifling Formation while evaluating the results to date from the Steinalm Formation test interval.

For more details please see the PDF file.

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Emitter:	ADX Energy Ltd. Ölzeltgasse 3/8 1030 Wien Austria
Contact Person:	Vesna Blazevic
Phone:	+43 676 6893465
E-Mail:	office@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