ADX Energy Ltd.: Sicily Channel Permit Gazettal

ADX formally awarded new C.R150.AU Exploration Permit, Offshore Italy

Location map Sicily Channel permit and nearby producing fields; ADX Energy Ltd.

Wien (pta009/18.08.2025/09:41 UTC+2)

"A very promising exploration permit in an emerging and newly producing offshore gas province, which is supported by historic data that enhances the likelihood of gas discoveries in shallow water and shallow drill depths"

Key points:

• ADX Energy Ltd, via its 100% subsidiary Audax Energy S.r.l., has been formally awarded the C.R150.AU Exploration Permit ("Permit") at a 100% equity interest
• Historic Data including offshore seismic and drilling results for deeper oil has enabled ADX to identify prospects similar to recently producing gas fields such as nearby Argo-Cassiopea (offshore) and analogous to Lippone-Mazara (onshore) where stacked pay results in large resource potential in a relatively small area ("Play Type")
• Resource Potential previously advised by ADX is 369 BCF best technical prospective resources from five (5) high graded gas prospects(refer ASX announcement 30 August 2022)

Cautionary Statement: 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 exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially recoverable hydrocarbons.

• Economic Viability of a potential discovery in this Permit is enhanced by:
  • Shallow water depths and drill depths of approximately 100 metres and less than 2000 metres respectively, with several leads and prospects shallower than 1500 meters,
  • Proximity to infrastructure access tie in point onshore at Mazara (less than 50km from the Permit) connected to the TRANSMED pipeline - a major import route for gas into Italy,
  • Stacked pay and productive sands yielding peak well production rates of 20 to 30 MMSCFPD based on Argo-Cassiopea fields,
  • Sweet biogenic gas (99% methane) is likely based on gas recovered from the historic Nilde-2 well in the Permit and the analogous, nearby Lippone-Mazara field,
  • Favourable fiscal terms with 10% royalty and 28% corporate tax, and
  • Excellent gas pricing in Italy currently EUR 34.2 per MWhr (equivalent to US$11.7 per mcf)
• Regional Knowledge has been developed applicable to the Permit from previous exploration programs in the Mediterranean by ADX in Tunisia to the south of the Permit
• Resources Update following the purchase of additional, available seismic and well data. This will be followed by further gas prospect maturation work and commissioning an independent expert's report
• Shareholder Webinar will be held in early September providing additional commercial and technical information regarding the Permit's potential

ADX Executive Chairman, Mr Ian Tchacos, said, "The Board of ADX is delighted by this exciting new country entry and the addition of the Sicily Channel Permit to the ADX portfolio at a time when energy security and the demand for gas in Europe is at a premium. Persistence and geological knowledge of the area has paid off for ADX. Our Chief Executive, Mr Paul Fink identified the potential of the area for oil and then subsequently for gas following our exploration work and state of the art 3D seismic acquired in both Tunisian and Italian waters to the south of this Permit.

"As is the case for the Shallow Gas Play we are pursuing in Upper Austria, the availability of historic, high quality 2D seismic data and production well data has strengthened our confidence in the potential of the Sicily Channel Permit. The availability of data also reduces the exploration timeline significantly for this proven gas play. The Permit which was previously the focus of oil production is totally under explored for gas but is ideally located in terms of water depth, distance from shore and availability of gas export infrastructure. The recent, nearby shallow gas discoveries and field developments by ENI has opened up the Sicily Channel for gas exploration.

"Of further significance for ADX, we are now a qualified operator in Italy having demonstrated our financial capacity and technical competency in a pro-development jurisdiction supporting the exploration for and the development of gas since the election of Ms Giorgia Meloni and the formation of a center-right coalition.

"We now look forward to further studies utilising additional seismic and drilling data which will be purchased to further evaluate the prospectivity of the Sicily Channel Permit and provide further updates to our shareholders."

For more 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)
Stock Exchange(s):	Free Market in Berlin, Frankfurt, Hamburg, Munich, Stuttgart, Tradegate
Other Stock Exchanges:	Australian Securities Exchange (ASX), Sydney