ADX Energy Ltd.: Operations Update Welchau-1 Production Testing Progress Report 3

Wien (pta006/04.12.2024/09:49 UTC+1)

"Perforation of the upper part of the Reifling formation has not provided sufficient flow to determine the reservoir fluid composition.

Sampling has recovered black solid particles of unknown composition, which may be affecting well flow.

Further flow analysis and sampling will be undertaken prior to a decision on forward program including reservoir acidization."

Key points:

• ADX holds a 75% economic interest in the Welchau 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 well completions required for testing the Welchau-1 well.
• Following testing of the Steinalm formation, the Steinalm perforations have been isolated with a packer and a new test completion has been run in the well to perforate and test the upper section of the 128 metre thick (vertical thickness) Reifling formation. Three intervals have been perforated in the upper Reifling including (1) 1324 m to 1340 m (16 m), (2) 1346 m to 1351 m (5 m) and (3) 1358 m to 1382 m (24 m), all Measured Depths.
• The shallower Reifling formation was perforated on the 28th of November 2024 and limited inflow was observed at surface. The well was shut in over the weekend to provide enough time for the well to flow a sufficient volume for reservoir fluids to enter the tubing string. The fluid level in the well observed on the 3rd of December indicated limited inflow (less than 1 cubic metre or approx. 6 barrels). Sampling of the well fluid indicated only completion brine and fine solid particles of unknown origin ("Solid Contaminants") were present in the well as shown in Figure 2 at the PDF file. The Solid Contaminants recovered had a petroliferous odour.
• The well has been left shut in to determine if it can flow naturally, analyse the composition of well fluids including the Solid Contaminants recovered to date and potentially flow sufficient formation fluids ("Minimum Flow Volume") to enter the production tubing - by filling the annular space from the perforations to the bottom of the tubing string ("Further Well Flow Information").

The forward program will be determined once Further Well Flow Information is collected and assessed including whether to proceed with the acidization of the reservoir which is common practice for overcoming well bore damage and enhancing productivity in carbonate reservoirs.

For further 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)
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