ADX Gets Austrian Endorsement for License Amendments

Austria’s Finance Ministry has agreed to ADX Energy Ltd.’s addition of new contiguous acreage with an equal relinquishment of current area parts in Upper Austria at no additional cost to the company.

The Australian company expects a final area amendment agreement for the ADX-AT-I and ADX-AT-II exploration and production licenses in the second quarter, according to a regulatory filing.

“The area variations have been initiated and designed by ADX to capture multiple asset expansion opportunities with different play types in the basin”, ADX told the Australian Securities Exchange.

“The revised acreage configuration places ADX in an excellent position to diversify and improve its production revenue base in the short term with low-risk and fast-to-develop gas targets as it continues to mature prospects for drilling in its evolving exploration portfolio with larger resource potential”, it added.

“ADX’ immediate focus is on multiple, low-risk and drill-ready shallow gas targets that are expected to provide rapid production and cash flow growth from a proven gas play with strong, identifiable signatures on 3D-seismic”, ADX said.

“These shallow gas targets provide immediate and low-cost drilling opportunities that are close to open access pipeline infrastructure, with multiple follow-ups.

“ADX has more than tripled the number of these prospects within its revised acreage position. The development of this play is attributable to a large extent to detailed 3D seismic AI (‘Artificial Intelligence’) mapping over the last two years”.

For ADX-AT-II, “The Welchau area acreage has been expanded to include a potential extension of the Welchau-1 discovery, greater coverage of the Molln gas appraisal opportunity (previously outside the Company’s acreage) and the follow-up Rossberg prospect”, it said.

“The results of the Welchau-1 and the nearby Molln-1 gas discovery already demonstrate the large resource potential within ADX’ Carbonate Thrust Belt play”.

In 1989 the Molln-1 well was tested up to four million cubic feet a day of gas from a carbonate reservoir of equivalent age to that being tested at Welchau-1, according to ADX. Testing at Welchau-1 has been suspended pending an objection to an existing environmental permit, as confirmed by the company.

For ADX-AT-I, “Additional high-impact oil and gas prospects are being matured which are expected to benefit from upgraded interpretations supported by further new reprocessing of the extensive 3D seismic data”.

ADX also said it is preparing to drill prospects near the Anshof oilfield in ADX-AT-II “to rapidly add production to the existing Anshof Permanent Production facility”.

“ADX is developing an extensive portfolio of appraisal and exploration projects that it plans to pursue during 2025 in conjunction with the ongoing testing of Welchau-1”, it said.

“Using existing funding sources, as well as potential farmouts, the company is planning to engage a drill rig to commence exploration activities, initially targeting its expanding portfolio of low-risk shallow gas prospects along with step-out drilling near its existing Anshof oil field”.

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