Wien (pta/01.03.2023/11:27 UTC+1)
"MCF Energy Ltd have elected not to take up an option to fund a further 50% of ADX' Welchau-1 exploration well to earn a further 20% economic interest in the Welchau Investment Area.
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) entered into an Energy Investment Agreement for the Welchau Investment Area with Canadian TSX Venture Exchange ("TSXV") listed MCF Energy Ltd. (TSXV – MCF.V) ("MCF Energy"), formerly Kepis & Pobe Financial Group Inc, on the 29th of November 2022.
Under the terms of the Energy Investment Agreement ("EIA"), MCF Energy will fund 50% of the Welchau-1 well drilling costs to earn a 20% economic interest in the Welchau Farmin Area. By the payment of a non-refundable EUR 100,000 Option Fee , MCF Energy was granted the Option to fund a further 50% of the Welchau-1 well cost to earn a further 20% economic interest in the Welchau Investment Area on or before 21 January 2023. The Optionwas subsequently extended to the 28th February 2023 on the same terms as previously agreed by the parties.
MCF Energy has elected not to exercise the additional participation Option. At the completion of MCF Energy's funding obligation under the EIA for 50% of the cost of the Welchau-1 well , MCF Energy will hold 20% economic interest and ADX will retain a 80% economic interest in the Welchau Investment Area (refer to Appendix 1, Figure 1 at the end of this release). The Welchau-1 well cost is estimated to be EUR 3,810,000 (A$ 5,910,000).
Welchau-1 Well Planning
ADX recently executed a land access and rental agreement for the Welchau-1 surface drilling location with the Austrian Forestry Ministry. ADX is undertaking well planning and the permitting for the Welchau-1 well with a view to commence well site preparation and drilling during the third quarter 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).
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|