Wien (pta037/23.01.2023/18:29) - Dear Shareholders,
There have been recent reports in the Austrian press in relation to ADX's planned Welchau well. The well has a large gas potential and is located in a relatively under explored area in the Austrian Alps. Predictably, the drilling project is attracting both government and community interest, at a time when security of energy supply in Europe is critical.
The Austrian Federal Ministry of Finance (ministry in charge of mining and energy) stated last week in response to media reports that "The events (Note: in the context the significant energy price increases and the shut off from Russian gas is meant) during the last months have shown that Austria needs to increase its energy security through diversification of its energy sources. The acquisition of new sources of energy, including domestic resources, and their evaluation and open discussion is in the interest of the national Austrian security of energy supply." (Source: public written statement by the Finance Ministry on Austrian National television (ORF) on 17th January 2023).
However, there has also been some misleading information circulated that incorrectly states that Welchau is about to be developed as a gas field, or that Welchau is located within a national park. These statements have created some confusion amongst the local community of Molln where the well site is located. In addition, there have been requests for information about whether gas from Welchau would be exported or sold into the Austrian market to ensure security of domestic gas supply with some poorly informed sources stating that Welchau gas may be transported for sale to Australia.
It should be recognised that ADX is a newcomer in the Austrian energy sector which has been dominated by two companies for over 70 years. While the majority of our staff are Austrian nationals with extensive oil and gas experience in Austria, ADX, as a company, is relatively unknown in the general community despite having an excellent rapport with the Ministry and the local community in the Zistersdorf area. At Zistersdorf, ADX is an important employer that reliably and safely produces oil and gas to high environmental standards. ADX has expanded its activities to Upper Austria where Welchau is located and where ADX recently made the Anshof oil discovery which is now being produced under a long-term test.
In addition to ADX oil and gas production operations and exploration activities which are intended to provide increasing, reliable energy in the near term, ADX is pursuing a number of complimentary renewable energy projects which we hope will provide longer term low carbon energy production. These renewable projects are highlighted in the Company's website.
In order to provide clarity in relation to the Welchau drilling project and ADX's activities in Austria generally, ADX made the attached Press Release in Austria on the 20th of January 2023 (English translation of German release attached as PDF). The Press Release is intended to ensure that the Company's stakeholders and the community are informed with factual information about planned well operations, the permitting process, the resource potential at Welchau and, if successful, the strategic importance of Welchau gas.
As reported in an ASX release dated 14 December 2022, the Welchau well is now at the permitting stage for drilling of the well following the recent execution of a land access and rental agreement for the Welchau-1 drill site with the Austrian Forestry Ministry. ADX believes that the necessary permits can be achieved within a four to six month time frame. ADX was able to execute the Anshof project from governmental approval application to drilling to production in just over a year, this demonstrates that oil and gas projects can be executed efficiently and reliably in Austria, including the engagement with many affected stakeholders from property owners to environmental agencies.
ADX will continue to inform its shareholders, stakeholders and the community in which we operate in relation to our ongoing activities at the Welchau gas prospect as well as the other planned drilling projects such as the new Anshof oil field development wells.
|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|