Wien (pta/23.01.2023/10:45 UTC+1)
Welchau Gas Prospect Farmin Agreement Assigned to TSXV Listed MCF Energy Ltd. and Further Farm-in InterestOption Extended
"Kepis & Pobe Financial Group Inc. have assigned their interest in the agreement to fund 50% of the cost of ADX' Welchau-1 exploration well to earn a 20% interest and the parties have agreed to extend the option to earn a further 20% interest to 28 February 2023."
ADX Executive Chairman, Mr Ian Tchacos, said, "The Board of ADX is pleased to have MCF Energy Ltd. as its highly experienced and European gas focussed partner to participate in the drilling of the large Welchau gas prospect in Upper 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 Kepis & Pobe Financial Group Inc.("KPFG") have assigned their interest in the Welchau farmin agreement to Canadian TSX Venture Exchange ("TSXV") listed MCF Energy Ltd. (TSXV – MCF.V) ("MCF Energy").
Under the terms of the Energy Investment Agreement, MCF Energy will fund 50% of the Welchau-1 well drilling expenditure to earn a 20% economic interest in the Welchau Farmin Area. By the payment of the EUR 100,000 Option Fee (received in December 2022), MCF Energy was granted the option to fund a further 50% of the Welchau-1 well drilling cost to earn a further 20% economic interest in the Welchau Farmin Area on or before 21 January 2023 (refer ASX Release dated 29 November 2022).
The Option election date has been extended from 21 January 2023 to 28 February 2023 on the same terms as previously agreed by the parties. Prior to the Option election MCF Energy must provide proof of financial capability to perform its additional obligations under the Option. The Welchau-1 well drilling expenditures are budgeted at up to EUR 3,810,000 (A$ 5,910,000).
If MCF Energy exercises the Option to fund the entire Welchau-1 well cost, at the completion of its farmin obligations, MCF Energy will hold 40% economic interest and ADX will retain a 60% economic interest in the Welchau Farmin Area (refer to Appendix 1, Figure 1 at the end of the PDF-file of this release).
Welchau-1 Well Updates
ADX will provide regular updates in relation to well planning and permitting for the Welchau-1 well. ADX recently executed a land access and rental agreement for the Welchau-1 surface drilling location with the Austrian Forestry Ministry (refer ASX Release dated 14 December 2022).
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).
ADX Energy Ltd.
|Contact Person:||DI Paul Fink|
|Phone:||+43 (0)50 724 5666|
|Stock Exchange(s):||Free Market in Berlin, Frankfurt, Hamburg, Munich, Stuttgart, Tradegate|
|Other Stock Exchanges:||Australian Securities Exchange (ASX), Sydney|