ADX Energy Ltd.: Drilling Permit Secured for Giant Welchau Gas Prospect in Upper Austria

Wien (pta017/16.08.2023/11:07 UTC+2)

Welchau has exceptional gas resource potential, located in the heart of Europe at relatively shallow drill depth and proximal to gas pipelines. Drilling planned in the fourth quarter of 2023

Key points:

• The drilling permit for the Welchau-1 well has been issued by the Mining Authority on behalf of the ministry of finance of the Republic of Austria (Bundesministerium für Finanzen) (BMF). The drilling permit followed the submission of drilling program documentation, expert opinions and a public hearing at the Welchau drill site where there were no major objections.
• The permit allows drilling and testing of the Welchau-1 well, as well as a longer-term production test if required.
• Drilling and testing must be conducted during the winter period (between 1 October 2023 and 31 March 2024) utilising two pre agreed drilling and workover rigs which satisfy the required safety, noise and environmental emission standards.
• Drilling operations are expected to commence during the fourth quarter of 2023 after receipt of an environmental clearance.
• The Welchau gas prospect has best technical Prospective Resources of 807 BCFE (134 MMBOE)¹.Welchau is targeting the same reservoirs as the nearby Molln-1 well which tested pipeline quality gas in 1989.

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 Executive Chairman, Mr Ian Tchacos, said,"The Board of ADX is very impressed and encouraged by the transparent and efficient permitting process conducted by the Austrian Mining Authority for evaluating extensive technical, legal and environmental documentation, as well as openly addressing relevant stakeholder and community interests. The Welchau exploration project is an exceptional domestic energy supply and economic opportunity for the State of Austria. ADX and our partner MCF Energy Ltd are committed to responsible gas exploration. We look forward to the ongoing engagement with our stakeholders and the local community based on factual information in relation to the project's environmental impact, the relevant safeguards deployed, as well as the potential social and economic benefits if the well is successful."

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¹ Best Technical Prospective Resources Prospective resources reporting date 22.06.2023

ADX Energy Ltd (ASX Code: ADX) is pleased to advise that a permit has been issued by the Mining Authority on behalf of the ministry of finance of the Republic of Austria (Bundesministerium für Finanzen) (BMF) for the drilling of the Welchau-1 well in ADX-AT-II licence in Upper Austria (Drilling Permit). The Drilling Permit follows the review of extensive technical, legal and environmental documentation together with expert opinions and a public hearing on the 28th of June 2023 at which no major objections were received.

The Drilling Permit allows ADX to drill and test the Welchau-1 well and undertake a longer-term production test production if required. The Drilling Permit is tied to two specific rig types including a drilling rig and a work over rig provided by drilling contractor RED Drilling & Services GmbH (RED) with whom ADX has a rig services contract in place. Under the terms of the Drilling Permit, the Welchau-1 well can be drilled any time during the term of the exploration license providing it is drilled during a period between 1 October to 31 March (winter period).

The final stage of the permitting process is the receipt of an environmental clearance which is based on an independent expert's environmental report (Environmental Clearance). The clearance process is based on the evaluation of a report by a government nominated expert which has been completed and submitted to the local Upper Austrian governing body. The process will include a stakeholder hearing period similar to drilling permit process.

Drilling operations are expected to commence during the fourth quarter of 2023 after receipt of the Environmental Clearance. The success case drilling program is expected to take approximately 39 days.

Operational Readiness

ADX has purchased all the necessary long lead items to drill the Welchau-1 well. The drilling of the well will be under an existing rig services contract with RED. ADX used the RED drilling rig to drill the Company's first exploration well in Austria at Anshof-3. Anshof-3 was drilled without any lost time safety incidents and within budget. The drilling services and other contracted services will be almost exclusively provided by highly trained local staff from Upper Austria as was the case for the Anshof-3 well. ADX has endeavoured to maximise local content where there is an excellent past record of safety, environmental protection and reliable project execution. ADX intends to finalise a drilling rig slot with RED following granting of the Environmental Clearance.

MCF Energy Ltd.'s Economic Participation

Canadian TSX Venture Exchange ("TSXV") listed MCF Energy Ltd., under an energy investment agreement, has agreed to fund 50% of the cost of the Welchau-1 well to earn a 20% economic interest in the Welchau Investment Area. ADX retains an 80% economic interest in the Welchau Investment Area.

Refer to Appendix 1 in the PDF file for a technical summary of the Welchau prospect.

For further details please contact:

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 Prospective Resources 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 30 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).

Previous Estimates of Reserves and Resources:

ADX confirms that it is not aware of any new information or data that may materially affect the information included in the relevant market announcements for reserves or resources and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.

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Emitter:	ADX Energy Ltd. Canovagasse 5 1010 Wien Austria
Contact Person:	DI Paul Fink
Phone:	+43 (0)50 724 5666
E-Mail:	paul.fink@adx-energy.at
Website:	www.adx-energy.com
ISIN(s):	AU000000ADX9 (Share)
Stock Exchange(s):	Free Market in Berlin, Frankfurt, Hamburg, Munich, Stuttgart, Tradegate
Other Stock Exchanges:	Australian Securities Exchange (ASX), Sydney