Adx Energy Ltd · ASX:ADX
Adx Energy — Investor Presentation (April 2024)
36 slides from Adx Energy's investor presentation, Apr 15, 2024
Slide 1: Investor Update – Focussed on Review of Welchau-1 Well Results
“Investor Update – Focussed on Review of Welchau-1 Well Results” An ASX listed European Energy Producer and Explorer “Reliable energy doesn’t need to cost the earth” ASX:ADX I n v e ASX: s t o rADX Update | 1 5 A p r i l 2 0 2 4 | We l c h a u D a t a R e v i e w adx-energy.com
Slide 2: Disclaimer Statement
2 Disclaimer Statement Important notice: This document has been prepared by ADX Energy Ltd (“ADX”) for the purpose of providing information to interested analysts, investors and shareholders. Any statement, opinions, projections, forecasts or other materials contained in this document do not constit
Slide 3: Investment Proposition and Operating Strategy
Investment Proposition and 3 Operating Strategy Increasing Reserves and World-class Value Adding, Operating Active Drilling Operating Production Exploration Complementary Capability Program Cashflow Growth from Portfolio in the Renewable • Ability to • Funded by New Discovery heart of Europe Project
Slide 4: Corporate and Asset Summary
4 Corporate and Asset Summary Positioned for a smarter, cleaner future for Europe Capital Structure Share price as at 11.04.2024 A$ 0.12 Number of shares 438.8 m Number of options 64.3 m Market capitalisation A$ 52.7 m Austria Oil & Gas Assets Austria Clean Energy Projects Vienna Basin fields – 100%
Slide 5: Our focus is on Austria
5 Our focus is on Austria Ideal place to build a diversified energy business Permits & Environment Permiting Approvals & Environmental Approvals (months) Australian Licht Anshof Welchau 0 10 20 30 A significant oil and gas industry 1 billion bbl oil & 2.7 Tcf gas produced to-date 75-Year oil & gas d
Slide 6: Very favourable gas market dynamics
6 Very favourable gas market dynamics Large premium to US & structurally higher long-term prices Fundamental changes to the Dutch TTF vs U.S. natural gas and Asian LNG1 Dutch TTF (USD per MMBtu) European gas market since Russia’s 5(x) price increase due invasion of Ukraine in Feb-22: 45.0 U.S. natur
Slide 7: Recent Highlights
7 Recent Highlights 01 02 04 05 Finance Production Appraisal & Exploration ▪ Share Capital Development ▪ Stable ▪ Drilled Welchau Consolidation production from Gas Prospect of 1 for 10 Vienna Basin ▪ Drilled Anshof-2 ▪ Near Field Gas ▪ Placement & SPP Fields appraisal well prospects A$ 6.4M funds fr
Slide 8: 2024 Near term activities
2024 Near term activities Period of high activity focussed on Welchau resource definition, increasing cash flow and reserves growth Welchau gas Anshof oil field Upper Austria Anshof field Testing & Appraisal Appraisal & Gas Exploration Near field oil follow ups Large resource Development Low risk, a
Slide 9: Vienna Basin Production Assets
9 Vienna Basin Production Assets Stable, high value production with long term potential Vienna Basin Fields (100% interest) A long-term future for Vienna Basin Fields ▪ A unique position – own the land + storage reservoirs + green ✓ Low emission, low decline production delivering power + connected t
Slide 10: Anshof appraisal and development
10 Anshof appraisal and development Anshof-3 discovery well production Anshof-3 drilling with the RED E-202 rig ✓ Long term test production from Oct 2022 to Sep 2023 reaching regulatory in January 2022 limit (36,000 barrels) using production constrained interim facility ✓ Stable water free productio
Slide 11: Anshof appraisal and development
11 Anshof appraisal and development Anshof-2 ST1 - next appraisal / development well “Stable, high value production with ▪ Targeting thicker, better quality reservoir above the oil-water-contact ongoing reserves growth” ▪ Up-dip of Anshof-2 minimising well cost by using existing ANS-2 well and side-
Slide 12: Near Term Exploration Focus
Near Term Exploration Focus 155 Bscf ▪ Welchau discovery evaluation and testing developed gas field ▪ Welchau deepening ▪ Further core area gas exploration ▪ Anshof near field oil potential ▪ Welchau appraisal planning Giant Welchau 100km2 Jurassic anticline IRR-1 gas prospect Refer to Cautionary St
Slide 13: Exploration Activity in Upper Austria
13 Exploration Activity in Upper Austria High impact, drill ready portfolio in the heart of Europe Welchau gas discovery to be 1020 km2 1 acreage tested in Q4 2024. Large resource potential to be appraised 20 Prospects High Impact Gas Prospects & 3 3500 km2 2 High Value Shallow gas play 4 3D Seismic
Slide 14: Welchau Gas Liquids Discovery
14 Welchau Gas Liquids Discovery Overview of potential “A potentially transformational resource in the heart of Europe. Our confidence in Welchau’s potential remains undiminished. The evaluation and testing of Welchau is a core focus and value driver for ADX” Welchau-1 Molln-1 ADX predrill estimate
Slide 15: Welchau Gas Liquids Discovery: Results to date and next steps
15 Welchau Gas Liquids Discovery Results to date and next steps Key findings from drilling phase ▪ 450m of hydrocarbons shows in a giant 100 “Next Steps” km2 structure (refer Well Data Review) ▪ Structural interpretation on prognosis ▪ Data QC ▪ Confirmed good trap seal quality which was a major pre
Slide 16: Indicative economics and profitability benchmarking
16 Welchau Gas Liquids Discovery Indicative economics and profitability benchmarking Indicative Economic Potential Compelling potential Welchau Profitability Index Ratio2 vs (EUR mil.) at EUR 30/MWh gas price ▪ Large gas and liquid resource other gas projects in Europe potential at an onshore locati
Slide 17: Welchau’s potential is of national significance
17 Welchau’s potential is of national significance Austria’s gas supplies remain highly vulnerable & Russia dependent "Our dependence on Russian natural gas threatens the Russian Imports as a Percentage of Total prosperity, security and future of our country. Our goal is to get Russian imports as a
Slide 18: Welchau Gas Liquids Discovery Challenges and Opportunities
18 Welchau Gas Liquids Discovery Challenges and Opportunities “Welchau is a resource of potential national significance ◊ With additional evaluation can come increasing value and reduced risk ◊ We are starting from a very encouraging place” Challenges The RED E200 drill rig prior to well spud at the
Slide 19: Complementary renewable energy projects
19 Complementary renewable energy projects Complementary projects with in ADX acreage Green H2 project Green H2 project Solar power Gmunden pilot phase scaleup phase project geothermal project (Vienna Basin) (Vienna Basin) (Vienna Basin) (Upper Austria) Production & storage of green Production & sto
Slide 20: ADX role in European energy transition
20 ADX role in European energy transition Ideally positioned in the near term and the longer term Growth in Global Energy Demand ➢ Oil & gas demand continues to increase The transition to renewables is taking longer than expected Pace of Transition to Date ➢ Gas is a transition fuel in the EU Financ
Slide 21: Appendix 1: Welchau-1 Gas Liquids Discovery Well Data Review
Appendix 1: Welchau-1 Gas Liquids Discovery Well Data Review 21
Slide 22: Welchau-1 data review
22 Welchau-1 data review Overview of the Discovery Well Welchau Status Summary » Welchau-1 well is a fractured carbonate hydrocarbon discovery with significant potential, meeting key measures proving: o hydrocarbon charge, a trapping mechanism, a reservoir for storage and a sealing mechanism, with o
Slide 23: Welchau-1 data review: Trap prediction
23 Welchau-1 data review: Trap prediction Pre-drill Structure Prediction » Trap ✓ o Located in the foothills of the Austrian Alps o Pre-drill the trap was mapped as a thrust anticline (outcrop mapping, balanced cross section, 2D seismic along dip and down dip well Molln- 1 well) with an estimated ar
Slide 24: Welchau-1 data review: Presence of seal
24 Welchau-1 data review: Presence of seal » Seal ✓ o Seal was the single biggest risk in Welchau-1’s 20% probability of technical success (i.e. geological discovery) o Seal is composed of the thick Lunz formation (350m MD) with the Partnach formation (43m MD) immediately above top reservoir o The P
Slide 25: Welchau-1 data review: Carbonate vs Sandstone Reservoirs
25 Welchau-1 data review: Carbonate vs Sandstone Reservoirs » Carbonate reservoir characteristics Carbonate Porosity Types o Reservoir characterisation is more complicated in carbonates than sandstones o In sandstone reservoirs, depositional stratigraphy is the dominant control on reservoir petrophy
Slide 26: Welchau-1 data review: Reservoir quality
26 Welchau-1 data review : Reservoir quality » Reservoir ✓ o Presence of reservoir was not seen as a significant risk to Welchau-1 success. The uncertainty is in relation to the storage volume (Stor in table below) and recoverable volume or permeability (Perm in table below). The table below is qual
Slide 27: Welchau-1 data review: Reservoir quality (evidence of fractures)
27 Welchau-1 data review : Reservoir quality (evidence of fractures) » Reservoir ✓ o In fractured carbonate reservoirs the fracture network extent is not fully evident in a near-vertical Core longitudinal section CT images borehole • The Steinalm core Computerised Tomographs Micro Fractures Borehole
Slide 28: Welchau-1 data review: Presence of hydrocarbons
28 Welchau-1 data review : Presence of hydrocarbons » Hydrocarbon charge ✓ o Steinalm formation (118m MD, Primary Target): Downhole Sample Recovery • MDT down hole sample of ‘light oil’ - direct evidence of producible hydrocarbons despite significant mud losses to high permeable fractured formation
Slide 29: Welchau-1 data review: Hydrocarbon system (Preliminary)
29 Welchau-1 data review : Hydrocarbon system (Preliminary) Formation (450m MD) ‘In-borehole’ Direct Evidence* GAS ANALYSIS REPORT Storage Productivity Well name: Sample Source: DBG Sample Depth (m): WEL-1 1368 SAMPLE NUMBER: 9 Cromatography T. Partnach 1281m Partnach (43m) C1 C2 C3 IC4 NC4 IC5 NC5
Slide 30: Welchau-1 data review: Data analysis program
30 Welchau-1 data review: Data analysis program Complete Dataset (Well drill data/Gas Log/Wireline Logs) HC Storage Parameters ‘Updated’ Resource Estimate Structure Size - Structure - Reifling / Steinalm / Gutenstein / Reichenhall - Structure Analysis / Molln-1 Correlation - Porosity (Matrix / Fract
Slide 31: Welchau-1 data review: Resource estimation certainty
31 Welchau-1 data review : Resource estimation certainty » The Welchau-1 hydrocarbon discovery has i) eliminated the risk of a discovery and ii) reclassified most of the pre- drill resource estimate from ‘prospective’ to ‘contingent’, as per the “Petroleum Resources Management System” 1 Gas to conde
Slide 32: Welchau-1 data review: Follow up lead inventory
32 Welchau-1 data review: Follow up lead inventory “Welchau-1 is a play opening discovery - 11 follow up leads have been defined based on structural modelling undertaken during the maturation of the Welchau prospect” 1 Rossberg LCC upper duplex 5 Breitenau Steinalm 10 Scheiblingau Steinalm 2 Rossber
Slide 33: Welchau-1 data review: Drilling operations overview
33 Welchau-1 data review : Drilling operations overview Pre-drill vs’s Post drill time versus depth » Drilling performance and cost o Welchau-1 penetration rates exceeded pre drill estimates by approximately 30% to 40% o The actual dry hole drill time was 35% less than the planned drill time. o The
Slide 34: Welchau-1 data review: Gas export infrastructure options
34 Welchau-1 data review : Gas export infrastructure options Option 1: Welchau Pipeline Tie-In to (High Pressure) National Transmission Gas Grid National Gas Grid (OD: 16“ | OP: 50 bar ) Pipeline tie-in: 17 km National Gas Grid Service Station ‚Klaus‘ WELCHAU 1 Investor Presentation – 15 April 2024
Slide 35: Welchau-1 data review: Gas export infrastructure options
35 Welchau-1 data review : Gas export infrastructure options Option 2: Welchau Pipeline Tie-In to (Low Pressure) Local Gas Grid National Gas Grid (OD: 16“ | OP: 50 bar ) Local Gas Grid Tie-in point Molln (Pipeline operating pressure: 6 bar) Pipeline tie-in: 15 km WELCHAU 1 Investor Presentation – 15
Slide 36: The ADX Team
The ADX Team 36 Experience of our Board and Management Team Connect with Us Better energy Ian Tchacos Executive Chairman A cleaner smarter future for Europe ian.tchacos@adxenergy.com.au adx-energy.com Mr Ian Tchacos, Executive Chairman Ms Amanda Sparks, Finance Manager & Co Company Secretary 35 year