ADX Energy encounters hydrocarbons in Upper Austria

ADX Energy Ltd. encountered oil and gas in the Anshof-3 exploration well in the ADX-AT-II license in Upper Austria, based on preliminary results from drilling data including measurement while drilling and mud logging.

The well reached a depth of about 2,400 m in 8 ½-in. hole on Jan. 4, 2022, using the RED Drilling & Services GmbH E-200 rig on day 17 of drilling operations. The well is drilling ahead to the basement at about 2,500 m TD and may intersect Cenomanian sandstones, a secondary oil target, prior to reaching total depth. ADX is planning an electric line logging program for the hole to further evaluate potential of the hydrocarbon intervals encountered.

Preliminary results from Anshof-3 drilling data includes a 9 m gross interval encountered at the primary Eocene oil target and a 20 m gross interval with potentially good reservoir quality with strong gas shows encountered within imbricated Miocene formations. The intervals exhibited hydrocarbon shows indicative of moveable hydrocarbons based on experience within the basin. The Eocene oil reservoir and other geological markers such as Top Oligocene and Top Cretaceous have been encountered as predicted, further confirming the presence of a large structure as mapped predrill on 3D seismic.

Anshof is a well-defined modern 3D seismic covered Eocene - Cenomanian prospect located up-dip and on trend from existing oil production from adjacent fields. ADX developed a structural model constraining nearby producing Voitsdorf, Bad Hall, and Pfarrkirchen oil fields which has resulted in identification of on trend prospects and appraisal opportunities. Success at Anshof-3 will validate the new structural model and de-risk multiple follow up prospects.

Anshof-3 has a best technical case prospective resource potential of 6.6 MMboe with upside potential in the primary Eocene sandstone reservoir objective. The well plan includes a deeper Cenomanian secondary target with a best technical resource potential of 2.1 MMboe.

ADX will earn 20% participating interest in the prospect based on farm-in funding from Xstate Resources Ltd. of 40% of Anshof-3 well costs. Post farm-in to Anshof and a second well, ADX will retain 80% interest in the prospect area and the Anshof farmin area. ADX will retain a 100% interest in the remainder of the ADXAT-II exploration license and the entire ADX-AT-I exploration license.