ADX Energy Ltd.: Operations Update Welchau-1 Production Testing Progress Report 2

Wien (pta005/27.11.2024/08:52 UTC+1)

"Production log analysis of first Steinalm formation test indicates flow at a single point from the lower perforated interval dominated production with little or no contribution from rest of the 27-metre interval.

Preparations are underway to test upper part of the 128-metre thick Reifling formation."

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.

Further Analysis of the first Steinalm Formation Test

• The Steinalm formation was tested across two perforation intervals between 1452.5 m to 1463.5 m of measured depth (MD) "Upper" and 1474.5 m to 1480 m MD "Lower".
• The perforated intervals are over fractured zones where hydrocarbon shows were observed during drilling and above where oil was recovered from a down hole modular formation dynamic tester (MDT).
• A production logging tool (PLT) has been run in the well to determine the source of the produced mud and formation water.
• PLT results indicate that most of the fluid produced during the first Steinalm test came from the bottom perforations of the Lower interval with little or no contribution from the Upper interval approximately 27 metres above.
• Fluid entry appears to be at a single point at approximately 1478 m MD which was flowing preferentially to the Upper perforated interval. The dominant flow is interpreted to be from a fracture system accessing an oil/water contact lower in the structure.
• The first Steinalm test was not considered to be diagnostic of the presence or absence of hydrocarbons. ADX may re-test the Upper perforated interval at a future time after isolating the Lower perforated interval.

Planned Reifling Formation Testing Program

• The Steinalm test completion has been retrieved and the Steinalm Upper and Lower perforations have been isolated with a packer.
• A new completion will be run in the well to perforate and test the upper section of the 128-m thick Reifling formation. Three intervals will be perforated in the upper Reifling including (1) 1324 m to 1340 m MD (16 m), (2) 1346 m to 1351 m (5 m) and (3) 1358 m to 1382 m (24 m) MD (refer Figure 2).
• Commencement of testing of the Reifling formation is expected to take place by the end of the week commencing 2nd of December.
• The forward testing program after the Reifling formation test will be determined based on further analysis of results from Steinalm and Reifling tests.

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
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