ADX Energy Ltd.: Welchau Gas Exploration Well Update

Drilling Operations Report No. 3

Wien (pta023/11.03.2024/16:20 UTC+1)

Key points:

• The Welchau-1 gas exploration well was spudded on the 24th of February using the RED Drilling & Services GmbH (RED) E200 drill rig in the ADX-AT-II exploration licence in Upper Austria.
• Operations at 6.00 am Central European Time (CET) on the 10th of March were drilling out of 9 ⅝ inch casing at a depth of 1028 metres in the 8 ½ inch hole.
• Progress since the last report on the 4th of March was drilling 12 ¼ inch hole to a depth of 930 metres, running wireline logging tools, setting and cementing 9 ⅝ inch casing then commence drilling ahead in 8 ½ inch hole.
• The planned forward program is to drill ahead in 8 ½ inch hole to the main target.
• Drilling and logging results to date can be summarised as follows;
  • "Quick look" interpretation of image and dip logs taken in the 12 ¼ inch open hole section confirms that the well intersected a large North-verging anticline close to the crest of the structure.
  • Carbonate formations intersected show evidence of fracturing, faulting and gentle folding, resulting from deformation that was predicted at the crestal location of the Welchau anticline structure. Fractures are important for enhanced productivity in carbonate reservoirs.
  • The 9 ⅝ inch casing has been set in a clay and siltstone section (Lunz Formation) for well integrity that may also provide a seal for an underlying reservoir.
  • Minor hydrocarbon shows were encountered in the carbonate formations. Formation gas shows have increased from 0.0099% to 0.1765% primarily for methane as well as ethane and propane also measured upon entering the Lunz Formation where 9 ⅝ inch casing has been set.
  • Drilling penetration rates are faster than projected and the well is about 4 days ahead of the well plan.

For further Details please see the PDF file.

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Emitter:	ADX Energy Ltd. Ölzeltgasse 3/8 1030 Wien Austria
Contact Person:	Vesna Blazevic
Phone:	+43 676 6893465
E-Mail:	office@adx-energy.at
Website:	www.adx-energy.com
ISIN(s):	AU000000ADX9 (Share)
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Other Stock Exchanges:	Australian Securities Exchange (ASX), Sydney