ADX Energy Ltd.:
European Industry Partner, MND to fund the Anshof Oil Development Program
"MND also intends to finalise agreements to fund a Gas Exploration program in ADX' ADX-AT-I licence"
At completion, MND Austria a.s. (MND) will pay back costs of EUR 1.335 million (A$ 2.225 million) to ADX VIE GmbH (ADX) and subsequently fund EUR 5.28 million (A$ 8.80 million) for the drilling, completion and tie-in of the Anshof-2 and Anshof-1 wells to earn a 30% economic interest in the Anshof Field Area in the ADX-AT-II license, in Upper Austria.
The transaction includes further contingent Success Payments of EUR 1.335 million (A$ 2.225 million) payable to ADX and EUR 3.57 million (A$5.95 million) of further development funding if the Anshof-2 well meets agreed production performance criteria. Total firm and contingent investment obligation is EUR 11.52 million (A$19.20 million).
MND's economic interest is limited to the Anshof Field Area shown in figure 1 of the PDF file.
Completion of the transaction is subject to confirmation of acceptance of the Anshof Field Area partnership documentation by the Austrian designated authority.
ADX intends to drill the Anshof-2 appraisal & development well during the fourth quarter of 2023 which, subject to completion, will be MND's first investment in the Anshof Field Area. The Anshof field has been independently assessed to contain 5.2 million barrels of gross oil equivalent (BOE) reserves – refer ASX release dated 31 October 2022. The field is currently producing from the Anshof-3 discovery well at approximately 120 barrels of oil per day (BOPD).
At completion of the transaction, ADX will remain operator and retain a 50% economic interest in Anshof Field Area but has retained a 100% interest in adjacent oil prospects of similar resource potential to the Anshof field, such as the GRB appraisal project.
MND a.s., the parent of MND, is a highly credentialled European explorer, producer and oil services group that generated approx. EUR 8.5 billion of revenue in 2022.
MND and ADX have agreed, subject to contract, to conclude a further gas exploration investment in an area within the ADX-AT-I licence.
For more information please see the PDF file.
For further details please contact:
Chief Executive Officer
+61 (08) 9381 4266
+61 (08) 9381 4266
Authorised for lodgement by Ian Tchacos, Executive Chairman