Map ADX-AT-I, ADX-AT-II, Anshof
Wien (pta/18.09.2023/12:03 UTC+2)
"Payment of EUR 1.93 million by MND to ADX for past costs and long lead drilling equipment satisfies final transaction condition"
ADX Energy Ltd (ASX Code: ADX) is pleased to advise that the final precedent condition has been satisfied for the Energy Investment Agreement (EIA) for the Anshof Field Area between ADX' wholly owned subsidiary ADX VIE GmbH (ADX VIE) and MND Austria a.s. (MND). MND has made completion payments to ADX VIE of EUR 1,335,000 for back costs and EUR 597,353 for Anshof-1 and Anshof-2 well long lead items. The total firm and contingent investment payment obligations by MND are up to EUR 11,520,000. (Refer to the ASX release dated 7 August 2023). Under the terms of EIA, MND has secured 30% economic interest in the Anshof Field Area by the payment of past costs as well as the payment of firm and contingent investment obligations.
ADX VIE, MND and existing partner Xstate Resources Limited (XST) have finalised partnership and operating agreements covering the Anshof Field Area following the announced clearance of documentation between ADX VIE, MND and existing partner XST by the ministry of finance of the Republic of Austria (Bundesministerium für Finanzen) (BMF).
ADX is the operator and retains a 50% economic interest in the Anshof Field Area with partners MND and XST holding a 30% and 20% economic interest respectively in the partnership. ADX will retain a 100% interest in the remainder of the ADX-AT-II exploration area other than the Welchau Area where ADX holds an 80% economic interest. Of particular relevance to the potential expansion of Anshof, ADX has retained a 100% interest in adjacent oil prospects such as GRB which has similar resource potential to Anshof (see picture of the Map).
ADX will progress with the drilling of the Anshof-2 appraisal and development well during the fourth quarter of 2023 with funding to be provided by MND under the terms of the EIA. Success at the Anshof-2 well will result in a substantial increase in oil rate from the field as well as a Success Payment from MND. The Anshof-1 development well is planned to be drilled in 2024. The combination of Anshof-1, Anshof-2 and Anshof-3 is expected to deliver in aggregate an oil rate of approximately 750 to 1,000 BOPD assisted by high angle wells which are expected to result in high productivity and reserves recovery per well.
The partnership documentation developed by ADX for the Anshof Field Area transaction, which has been accepted by the BMF, can be used further for co-investment opportunities in ADX' Upper Austrian exploration acreage such as the Welchau Investment Area and the planned but not yet finalised gas exploration investment program by MND in part of the ADX-AT-I licence area.
Co-investment transactions within ADX' Upper Austrian exploration acreage are an important element of ADX' funding and risk mitigation strategy for exploration. ADX has an extensive portfolio of drillable prospects which is attracting industry attention for future co-investment.
The parent company of MND is MND a.s., a highly credentialled European energy company that generated approx. EUR 8.5 billion in revenue in 2022. MND a.s. businesses include Production & Exploration, Drilling and Services, Energy Storage and Energy Trading. The Company is active in the Czech Republic, Germany, Ukraine, Austria, Hungary, Slovakia and Hungary. Austria is a new country entry for their Exploration and Production Business.
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
End of this Release
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|