ADX Energy Ltd.: Operations Update

Welchau-1 Production Testing affected by a Court Decision

Wien (pta013/14.01.2025/09:13 UTC+1)

"An interruption to testing operations is likely while an objection to existing Environmental Clearances for the drilling and testing is resolved."

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.
• ADX drilled the Welchau-1 well during the first quarter of 2024 in accordance with Drilling Permits issued in November 2023 by the Austrian State Ministry of Finance and an Environmental Clearance granted by the local Upper Austrian State Government authority (Environmental Authority) responsible for the Nature Conservation.
• On the 18th of March 2024 ADX announced the Welchau-1 well had encountered liquids rich gas shows in the Steinalm Formation. The well was evaluated including further zones of interest with a wire line logging and sampling program. On the 28th of March 2024, well operations were suspended to comply Environmental Clearance conditions (limiting drilling and testing operations to the Austrian winter months from 1 October 2023 to 31 March 2024). Casing was run in the well and cemented in preparation for future testing operations.
• Based on the evaluation of drilling and logging results the well intersected three primary carbonate reservoirs that were considered promising for testing and ongoing appraisal. ADX announced the commencement of testing operations with the mobilisation of a workover rig to the Welchau-1 well site on the 5th of November 2024 following the receipt of a further Environmental Clearance for testing operations. The planned program was to test the two major reservoirs encountered by the Welchau-1 well, starting with the deeper Steinalm Formation and then the shallower Reifling Formation.
• The ongoing testing of the Steinalm Formation and Reifling Formation was undertaken. The well was shut in following an initial flow test of the Reifling Formation due to limited inflow. The well has been monitored with a view to allowing a sufficient volume for reservoir fluids to enter the tubing string that can be sampled before a decision is taken whether to acidise the well and continue testing operations.
• ADX has continued to undertake testing operations lawfully and in accordance with Environmental Clearance provisions at all times.
• Four registered Austrian environmental groups (NGOs) objected to the Environmental Clearance by submitting an appeal to the Relevant Environmental Authority as well as seeking a suspension of operations. The suspension of operations was rejected by the Relevant Environmental Authority ("Rejection"). Testing operations at Welchau-1 were conducted despite the appeal process on the basis of the existing regulations that such appeals do not have a suspensive effect.
• The Rejection was forwarded to the State Administrative Court of Upper Austria which in turn referred the Rejection to Austrian Constitutional Court to examine the legal basis (Judicial Review) for the article which prevented the suspension of operations for the period during which an objection is considered (Suspensive Effect Article). Following the Judicial Review, the Austrian Constitutional Court determined to repeal the Suspensive Effect Article on the basis that it was not constitutional.
• Based on advice received to date by ADX' lawyers, the testing of Welchau-1 should be suspended until the State Administrative Court of Upper Austria clarifies the approval situation.
• ADX will advise as soon as possible the likely interruption to testing operations. At present the well continues to be monitored to evaluate the rate of pressure build up with a view to determining the nature of fluid flow into the well.

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)
Stock Exchange(s):	Free Market in Berlin, Frankfurt, Hamburg, Munich, Stuttgart, Tradegate
Other Stock Exchanges:	Australian Securities Exchange (ASX), Sydney