Welchau-1 well surface location flat ground and road access, ADX
Wien (pta029/14.12.2022/14:34) - "Kepis & Pobe Financial Group Inc. has satisfied completion conditions including the payment of initial farmin funds. In addition, ADX has signed a land access agreement for the Welchau-1 drill site with the Austrian Forestry Ministry".
ADX Executive Chairman, Mr Ian Tchacos, said, "The Board of ADX is delighted to report that drilling of Welchau gas prospect has gained increased certainty with the confirmation of farmin funding from Kepis & Pobe Financial Group Inc. and the agreement for land access with the Austrian Forestry Ministry at our preferred drilling location. At a time when certainty of access for exploration and development operations is becoming increasingly uncertain in many jurisdictions, ADX is very fortunate to be operating in oil and gas friendly Austria".
*Note 1: The prospective resource estimates in this release are classified and reported in accordance with the PRMS – SPE Guidelines for the exploration licenses ADX-AT-I and ADX-AT-II, in the Molasse Basin, Austria. Refer to the end of this release for an explanation of prospective resource classifications used and the basis on which the prospective resources were estimated. Prospective Resources are those estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) related to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further explorations appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
ADX Energy Ltd (ASX Code: ADX) is pleased to advise that an initial agreed payment has been made by Kepis & Pobe Financial Group Inc.(KPFG) to fund 50% of the Pre-drill Well Costs of EUR 197,000 (A$ 305,000) for the Welchau-1 well and an option fee of EUR 100,000 (A$ 155,000) in accordance with a Joint Development Agreement (JDA) signed on the 28th of November 2022 to fund the drilling of the Welchau gas prospect in ADX-AT-II exploration license in Upper Austria. The Welchau-1 well drilling expenditure is budgeted at up to EUR 3,810,000 (A$ 5,910,000).
Under the terms of the JDA, KPFG will fund 50% of the Welchau-1 well drilling expenditure to earn a 20% equity interest in the Welchau Farmin Area. By the payment of the Option Fee, KPFG may elect to fund a further 50% of the Welchau-1 well drilling cost to earn a further 20% equity interest in the Welchau Farmin Area on or before 21 January 2023 (refer ASX Release dated 29 November 2022).
Assuming KPFG exercises the Option to fund the entire Welchau-1 well cost, at the completion of its farmin obligations, KPFG will hold 40% equity interest and ADX will retain a 60% equity interest in the Welchau Farmin Area (refer ASX Release dated 29 November 2022, Figure 1).
In addition to the to completion of the farmin agreement with KPFG, ADX has executed a land access and rental agreement for the Welchau-1 surface drilling location with the Austrian Forestry Ministry. The finalisation of the land access agreement for the Welchau-1 well site in combination with the procurement of long lead items required for the drilling of the well provides ADX with the certainty to progress the process of obtaining regulatory approvals from the Austrian Mining Authority and all relevant local authorities together with the commitment to a drilling rig slot for the large Welchau gas prospect. (Refer Photograph of the Welchau-1 well surface location showing relatively flat ground and excellent road access. The site is ideally located in terms of the trajectory for the well's bottom hole location.)
Welchau Well Planning and Approvals
ADX will provide regular updates in relation to well planning and permitting for the Welchau-1 well. ADX is seeking to obtain the necessary regulatory approvals and access to a drilling rig slot to enable drilling the Welchau-1 well during the first half of 2023.
For further details please contact:
|Paul Fink||Ian Tchacos|
|Chief Executive Officer||Executive Chairman|
|+61 (08) 9381 4266||+61 (08) 9381 4266|
Authorised for lodgement by Ian Tchacos, Executive Chairman
Persons compiling information about Hydrocarbons:
Pursuant to the requirements of the ASX Listing Rule 5.31, 5.41 and 5.42 the technical and reserves information relating to Austria contained in this release has been reviewed by Paul Fink as part of the due diligence process on behalf of ADX. Mr. Fink is Technical Director of ADX Energy Ltd is a qualified geophysicist with 25 years of technical, commercial and management experience in exploration for, appraisal and development of oil and gas resources. Mr. Fink has reviewed the results, procedures and data contained in this release and considers the resource estimates to be fairly represented. Mr. Fink has consented to the inclusion of this information in the form and context in which it appears. Mr. Fink is a member of the EAGE (European Association of Geoscientists & Engineers) and FIDIC (Federation of Consulting Engineers).(end)
|Emitter:||ADX Energy Ltd.|
|Contact Person:||DI Paul Fink|
|Phone:||+43 (0)50 724 5666|
|Stock Exchanges:||open market (free market) in Frankfurt, free market in Hamburg, free market in Munich, free market in Stuttgart; open market in Berlin, Tradegate|
|Other Stock Exchanges:||Australian Securities Exchange (ASX), Sydney|