ADX Energy : Half Year Financial Report - June 2025

About this update from Adx Energy Ltd

ADX Energy Ltd ABN 50 009 058 646 H A L F - Y E A R F I N A N C I A L R E P O R T F O R T H E S I X M O N T H S E N D E D 3 0 J U N E 2 0 2 5 Directors Ian Tchacos (Executive Chairman) Paul Fink (Executive Director) Edouard Etienvre (Non-Executive Director) David Gilbert (Non-Executive Director) Company Secretaries Peter Ironside Amanda Sparks Registered and Principal Office 29 Bay Road Claremont, Western Australia 6010 Telephone: +61 8 9381 4266 Web Page: https://www.adxenergy.com.au Email: [email protected] Share Registry Computershare Investor Services Pty Ltd Level 11 221 St George's Terrace Perth, Western Australia 6000 Telephone: +61 8 9323 2001 Facsimile: +61 8 9323 2033 Solicitors Steinepreis Paganin Level 4, Next Building 16 Milligan Street Perth Western Australia 6000 Bankers Commonwealth Bank of Australia 1254 Hay Street West Perth Western Australia 6005 Stock Exchange Listing Australian Securities Exchange Ltd 152-158 St Georges Terrace Perth Western Australia 6000 ASX Code: ADX Auditors In.Corp Audit & Assurance Pty Ltd Suite 11, 4 Ventnor Avenue West Perth, Western Australia 600 Your Directors submit their report for the half-year ended 30 June 2025. DIRECTORS The names of Directors of the Company during or since the half-year and up to the date of this report are as below. Directors were in office for this entire period unless otherwise stated. Name Position Mr Ian Tchacos Executive Chairman Mr Paul Fink CEO and Executive Director Mr Edouard Etienvre Non-Executive Director Mr David Gilbert Non-Executive Director - appointed 2 June 2025 Previous Director Mr John Begg Non-Executive Director - resigned 2 June 2025 REVIEW AND RESULTS OF OPERATIONS Summary of Financial Performance A summary of key financial indicators for the Group is set out in the following table: Consolidated 6 Months to 30 June 2025 $ Consolidated 6 Months to 30 June 2024 $ Net loss for the half-year after tax attributable to members of the Parent Entity (4,484,362) (3,280,545) Included in loss for the half-year: Operating revenue, net of hedging 6,160,469 4,971,267 Cost of sales - operating costs (4,469,751) (4,228,057) Cost of sales - royalties (417,023) (210,399) Cost of sales - depreciation/amortisation (1,886,682) (1,420,558) Cost of sales - partner share of operations 990 18,177 Restoration expenses - changes in abandonment provision (161,717) (281,439) Exploration expensed (1,752,240) (814,926) Basic (loss) per share (cents) (0.78) (0.70) Net cash from/(used in) operating activities (1,734,611) (1,099,791) Net cash from/(used in) investing activities (2,457,253) (7,968,933) Net cash from/(used in) financing activities (395,867) 13,594,756 Loan Notes: On 10 January 2025, ADX announced that it had entered into deeds of variation with the Loan Note holders in relation to 25 Loan Notes of A$ 50,000 each totalling A$ 1.25 million (Loan Notes). Five (5) Loan Notes of A$ 50,000 each (A$ 250,000 in total) were repaid on the original repayment date of 11 January 2025. Under the revised terms, the repayment period has been extended to 31 March 2026. The revised terms for the Loan Notes are summarised as follows: Face Value of Each Loan Note Loan Note A Loan Note B Total Loan Notes $50,000 $50,000 $50,000 Number of Loan Notes Issued 4 21 25 Total Loans aggregate amount $200,000 $1,050,000 $1,250,000 Loan Repayment Date 31 March 2026 31 March 2026 31 March 2026 Interest Rate per annum (payable quarterly in arrears) 8% 12% 8-12% Free Attaching Unlisted Options with an Exercise Price of $0.05, expiring 31 March 2026 - Per Loan Note 500,000 per Loan Note (2,000,000 in Total) - 2,000,000 in Total Free Attaching Unlisted Options 500,000 1,000,000 23,000,000 with an Exercise Price of $0.055, per Loan Note per Loan Note in Total expiring 31 March 2026 - Per (2,000,000 in Total) (21,000,000 in Total) Loan Note Production (Gross) in Austria was as follows: 6 Months to 6 Months to 30 June 2025 30 June 2024 Crude Oil Sold (Barrels)* 54,790 38,699 Gas Delivered (M 3 ) 405,273 440,994 Total Oil Equivalent (BOE) 57,256 41,386 Average Production Rate (BOEPD) 316 227 * Crude oil sold represents total gross production. This includes 18,441 barrels of crude oil sold from the Anshof-3 and Anshof-2A wells for the six months to 30 June 2025 (2024: 8,369). Refer to note 13 of the financial statements for partnership details for the Anshof-3 and Anshof-2A wells. Operations Review ACTIVITIES OVERVIEW ADX Energy Ltd (ASX: ADX, "ADX" or "the Company") is pleased to provide an update on its activities for the half-year ended 30 June 2025. The Company's focus was on increasing production from its Austrian operations, adding value to its existing assets and continuing to develop its portfolio of assets in Austria and Italy. Highlights for the Half Year Ended 30 June 2025 Increased oil and gas production in Austria from 39,964 BOE (equivalent to 217 BOEPD) during the previous half year ending 31 December 2024 to 49,795 BOE (equivalent to 275 BOEPD) during this half year, an increase of 24.6%. As a result of this production growth, sales revenues rose from A$ 4.362 million during the previous half year to A$ 5.293 million during the half year ended 30 June 2025, net to ADX, an increase of 21%. Facility enhancement at our Vienna Basin Fields with the installation of a CO 2 removal unit to keep gas production within specification without the need for blending with other gas sources. An option was exercised to purchase the Anshof permanent production facility. ADX will take possession of the facility on or before 21 October 2025. The 3000 BPD facility has the capability to process oil from multiple wells including oil exploration near the Anshof field, utilise associated gas for power generation and process oil from other fields discovered in the ADX Upper Austria licences. ADX reached an agreement to acquire Xstate Resources Limited's (Xstate) 20% economic interest in the Anshof Field Area together with its rights and obligations in relation to the Anshof Field Area Partnership. The transaction did not involve any cash outflows for ADX as the consideration of EUR 547,075 was set off in full against unpaid cash calls owing to ADX by Xstate. ADX now holds a 70% economic interest in the Anshof Field Area, all associated production infrastructure and the Anshof-3 well. ADX retains a 60% economic interest in Anshof-2A well. The ADX-AT-I and ADX-AT-II exploration licences in Upper Austria were renewed until year end 2028 and the licence areas were subsequently varied to incorporate multiple shallow gas play prospects. The commencement of permitting and land access to drill up to three (3) low risk, low cost and high reward shallow gas prospects. The continued development and renewal of the ADX Upper Austrian Prospect Inventory including the extension of the Welchau carbonate play to include the Rossberg follow up prospect and the Welchau Deep prospect. Welchau Deep can be drilled at relatively low cost by deepening the existing Welchau-1 well. The Sicily Channel C.R.150.AU permit, offshore Italy was awarded after the reporting date creating an exciting new growth pathway for ADX in Europe. The testing of Welchau was suspended due to objections by environmental lobby groups in relation to environmental clearances provided to ADX by the designated environmental authority. The validity of the objections to the environmental clearances for drilling and testing are yet to be determined by the State Administrative Court of Upper Austria. Figure 1: Map showing ADX production and exploration assets in Austria The Board of ADX is proud to report that no lost time incidents (LTI) were recorded during the reporting period for safety or environmental causes at ADX' Vienna Basin Fields, the Anshof Field or the Company's exploration licences. In addition to meeting the Company's existing environmental obligations, ADX has continued planning for the precise measurement, quantification, monitoring, reporting, and verification of methane emissions. This work is necessary for the Company's operations to comply with new methane emission regulations which came into force late last year within the European Union (EU) which have a three-year phasing in period. Figure 2: Group cash movements showing inflows and outflows by category during the 6 months ending 30 June 2025 During the reporting period, A$ 5.6 million was generated from production operations and other operating income. The revenue from operations exceeded operations costs together with corporate and administration costs. The most notable expenditures related to exploration costs of A$ 1.7 million and capital costs of approximately A$ 2.0 million for drilling expenditures, CO 2 removal equipment and production well expenditures. During the period, energy markets in Europe have remained volatile. However, ADX is well placed in Austria where we receive premium Brent pricing for our oil production and CEGH (Central European Gas Hub) pricing for gas production. CEGH prices remained elevated (EUR 43.55 per MWh or approx. US$ 14.87 per MMBTU on average over the period). Gas storage in Europe as at 30 June 2025 was approximately 58% full which is in the lower end of the 10-year historical average. Operating and licencing conditions have remained favourable in Europe where there is an increasing awareness of the longer-term need for both oil and gas as well as the recognition of the strategic and environmental importance of locally produced hydrocarbons. The award of ADX' Sicily Channel C.R.150.AU permit is an example of this change of sentiment towards locally produced hydrocarbons. In addition to our oil and gas operations, we continue to investigate the opportunity for value-adding and additional complementary energy projects. It remains ADX' long-term plan to enhance the value and life of its Vienna Basin Fields through the transformation of the assets into a multi-energy hub combining the existing low emissions oil and gas production operations with a solar park for power utilisation and hydrogen storage is depleted reservoirs. The GMU prospect, located in the Eastern part of the ADX-AT-I exploration licence in Upper Austria (Molasse basin), combines a geothermal opportunity (fractured Jurassic limestone with 110°C reservoir temperature) and stacked overlying oil and gas targets defined on high quality 3D seismic. An ongoing ministerial review of geothermal regulations is expected to enhance the potential of the project. Strategic Objectives The Company's strategic objectives during the past reporting period and the near term can be summarised as follows: Optimise existing cash flow from existing production assets in Austria; Focus immediately term on low-risk, rapid commercialisation opportunities in Upper Austria such as the Shallow Gas Play exploration and development; Increase oil production and profitability in Upper Austria from near field appraisal and low risk exploration that can be tied in to existing ADX infrastructure (the Anshof permanent production facility); Leverage the Company's extensive exploration portfolio in Austria and Italy by maturing and enhance prospects in the portfolio through technical definition including further Shallow Gas Play Prospects generation, the Welchau play prospects, the deeper sub-thrust play in Upper Austria and the recently awarded offshore Sicily Channel gas prospects; and Introduce investment partners to provide funding for ongoing exploration, reduce risk exposure and provide equity investor validation for ongoing exploration. Figure 3: Map showing ADX' prospect inventory in Upper Austria The Company's operational activities during the remainder of 2025 will focus on ADX' Upper Austria licences and our Sicily Channel exploration permit as follows: . Anshof Oil Field Purchase the Anshof permanent production facility in accordance with the lease-purchase agreement between ADX VIE GmbH and Oneo GmbH & Co KG. The transfer from lease to ownership will take place after the conclusion of the rental period on or before 21 October 2025. Upper Austria Exploration Licences - Shallow Gas Play Shallow Gas Play preparation for drilling including land access, permitting, long lead items and rig contracting for three (3) prospects to be drilled in the first quarter of 2026; Ongoing new prospect generation in 100% equity held ADX-AT-I varied licence area; and Ongoing farmout discussions for GOLD prospect and the GOLD cluster in the ADX-AT-II varied licence area. Upper Austria Exploration Licences - Welchau Play Area Re-commence Welchau-1 flow testing upon resolution of Environmental Clearance objections. Welchau Play Area exploration including finalisation for the drilling of Welchau Deep and Rossberg Prospects. Upper Austria Exploration Licences - Anshof Near Field Oil Appraisal and Exploration Permit the SGB nearfield oil appraisal prospect for drilling and continue ongoing prospect maturation. Upper Austria Exploration Licences - High Impact Exploration Ongoing maturation of Jurassic aged oil and gas plays utilising reprocessed 3D seismic pre-stacked depth migration (PSDM). Sicily Channel permit offshore Sicily Purchase of additional existing 2D seismic across permit area; Gas prospect update incorporating additional data; and Commission independent prospect resources evaluation. The Board of ADX looks forward to reporting our progress in Upper Austria and the Sicily Channel during the second half of 2025. We are positioning the Company for near term cashflow with a low risk, three (3) well Shallow Gas Play drilling program at the beginning of 2026 while we continue to develop our high impact portfolio in Upper Austria and the Sicily Channel. ASSET ACTIVITIES SUMMARY Production Assets, Vienna Basin Fields and Anshof Field - Onshore Austria ADX is operator and holds a 100% interest in the Vienna Basin production licences. ADX is operator and holds a 70% economic interest in the Anshof Field Area (including the Anshof-3 production well) and a 60% economic interest in Anshof-2A well. The Anshof Field and the Vienna Basin Fields production rate, net to ADX, during the half year averaged approximately 275 BOEPD compared to 217 BOEPD for the six months to December 2024. The 27% daily production increase was primarily due to a 29% increase in the Vienna Basin Fields oil production following a successful well workover program together with an increase in net Anshof oil production as a result of the purchase of the Xstate's 20% economic interest in the Anshof Field Area. The well work over program at the Vienna Basin Fields mentioned above was completed during the quarter ended 31 March with production in the quarter ended 30 June benefiting from the increased well uptime and higher production rates. The program comprised of five (5) well interventions to repair subsurface equipment failures, clean out a down hole sand control installation and perforation of a new oil production zone in a well. Figure 4: Showing Anshof Field and Vienna Basin Fields net monthly oil equivalent production and net average daily oil equivalent production rate. Field Revenues and Product Pricing, Vienna Basin Fields and Anshof Field Oil and gas sales revenues during the six-month period totalled A$ 5.3 million, net to ADX, an increase of 21% compared to the previous six months ending 31 December 2024 when sales revenues totalled A$ 4.4 million. The increase in revenue was largely due to the higher oil quantities discussed in the previous section. Oil prices remained relatively stable during the reporting period. The average crude Brent sales price during the half year was US$ 71.74 per barrel compared to US$ 77.44 per barrel for the previous six months ending 31 December 2024. Gas prices strengthened to EUR 43.55 per MWh during half year compared to EUR 36.30 per MWh for the previous six months ending 31 December 2024. Oil proceeds contributed to 93% of sales during half year as was the case for the previous six months ended 31 December 2024. Oil and gas sales revenues increased despite a weakening in the oil pricing of 7% due to a 25% increase in production over the six-month period. Figure 5: Showing Anshof and Vienna Basin fields monthly oil and gas sales revenue European Methane Emissions Compliance ADX is committed to achieving and exceeding its environmental obligations, including the reduction of greenhouse gas emissions. Methane is the second-largest contributor to climate change after carbon dioxide (CO 2 ), accounting for about one-third of current global warming. Atmospheric methane levels have risen significantly over the past decade. The first-ever European Union (EU) regulation on methane emissions reduction in the energy sector came into force on 4 August 2024. This regulation aims to meet the EU's commitment to the "Global Methane Pledge" of reducing global methane emissions by at least 30% from 2020 levels by 2030. The regulation applies to the exploration and production of crude oil, natural gas and coal within the EU, as well as importers of these fossil fuels into the EU. This ensures equal conditions for all fossil fuel producers supplying the EU's energy market ensuring domestic production is not disadvantaged by cheaper poorly regulated imports. The regulation establishes guidelines for the precise measurement, quantification, monitoring, reporting and verification of methane emissions in the EU's energy sector. Additionally, it sets out measures for reducing these emissions, including leak detection and repair surveys, repair obligations, and restrictions on venting and flaring. It mandates that re-injecting or utilising methane on-site, or directing it to market, must always take precedence over venting or flaring. The regulation provides rules for transparency related to methane emissions. The requirements of the regulation will be phased in over the next three years. During the reporting period, ADX proactively commenced taking the necessary steps to implement these measures. A leak detection and repair (LDAR) program was produced by preparing piping and instrumentation diagrams and lists for points of measurements for methane emissions. The Austrian Mining Authority, who is expected to be nominated as the competent authority for the implementation and monitoring of the EU Methane Regulation in Austria, approved the LDAR program during the reporting period and the program was implemented on site in August 2025. Hedging ADX' approach is to deploy a rolling hedging strategy seeking to provide stable near-term revenue generation during volatile market conditions. ADX entered into Put and Call Option Agreements to hedge approx. 100 BOPD of crude oil production for the period 1 April to 31 July 2025. The option pricing terms were as follows: Put Option Strike Price: USD 65.00 per bbl (Platts Dated Brent); and Call Option Strike Price: USD 75.20 per bbl (Platts Dated Brent). The hedge was designed to minimise downside risk in oil pricing. The hedge had only a small positive financial impact during the quarter since Brent crude oil mostly traded within the Put and Call range. The balance of the crude oil production from the Vienna Basin Fields and Anshof production remains unhedged during the period allowing ADX to maintain exposure to upside in Brent crude oil pricing. Gas production from the Vienna Basin Fields is not hedged. ADX continues to monitor market conditions for further hedging during 2025. Production and Development Activities Anshof Eocene Oil Project - Anshof Field Area, ADX-AT-II Licence, Upper Austria ADX is operator and holds a 70% economic interest in the Anshof Field Area (including the Anshof-3 production well) and a 60% economic interest in Anshof-2A well. ADX is operator of the ADX-AT-II exploration licence and holds a 100% interest in the licence other than the Anshof Field Area, Anshof-2A well and the Welchau Investment Area. Figure 6: Location map for the Anshof Field Area within the ADX-AT-II licence and the nearby low-risk follow up satellite oil prospects (ADX 100% economic interest) Anshof Field Area Economic Interest During the half year, ADX reached an agreement to acquire Xstate's 20% economic interest in the Anshof Field Area, including all related rights and obligations under the Anshof Field Area partnership. Consent from ADX' remaining partner, MND Austria a.s. (MND), was received after the reporting date. The transaction required no cash outflow from ADX, as the consideration (EUR 547,075) was fully offset against unpaid cash calls owed by XST to ADX. Following completion of the acquisition, ADX now holds a 70% economic interest in the Anshof Field Area, encompassing all associated production infrastructure and the Anshof-3 well. ADX continues to hold a 60% economic interest in the Anshof-2A well. MND retains the remaining 30% economic interest in the Anshof Field Area, comprising a 30% interest in Anshof-3 and a 40% interest in Anshof-2A. Anshof Field Production The total Anshof field production was 18,819 barrels during the half-year. At the end of the reporting period the field production was at 107 BOPD. Anshof-3 was producing 57 BOPD and Anshof-2A was producing 50 BOPD. Field water-cut remained stable during the quarter at 31%. The Anshof-3 well and the Anshof-2A well had production uptimes of 99.6% and 95.6% respectively for the reporting period. Anshof Reservoir Management The dynamic pressure response observed in Anshof-3 from production in Anshof-2A confirmed that the wells are located in a continuous oil pool with pressure communication (refer to the figure below). During the reporting period, the production rates for each of the wells were optimised to support reservoir management objectives, ensuring that the bottom hole flowing pressure for both wells remain above the oil's bubble point pressure i.e. the pressure threshold below which gas begins to come out of solution from the oil in the reservoir. The wells continue to perform very well. Figure 7: Anshof field outline and areas of greater Eocene reservoir thickness with interpreted field oil-water-contact (OWC) at 1593 m TVDSS, with the bottom hole location of the Anshof-3 discovery well, the Anshof-2A sidetrack well and the Anshof-2 well Permanent Production Facility (PPF) The PPF continued to perform very well with both Anshof-3 and Anshof-2A producing into the PPF during the entire reporting period. The PPF has the capacity to process oil from multiple wells with production capacity of approximately 3000 BPD. It is mostly unmanned and operates 24 hours per day with wireless data transmission. Oil production from the PPF is trucked to a nearby train loading facility and associated gas is used for power generation and process heat. Produced water is currently trucked and disposed of at ADX's facility in Zistersdorf in the Vienna Basin. ADX continues to pursue a technically and commercially viable alternative for disposing of Anshof's produced water, potentially replacing the current disposal solution at the Vienna Basin Fields with one nearer to Anshof. Key development and operations activities during the reporting period were as follows: The Mining Authority approved the Anshof-2A well operation to fall under the PPF licence rather than the restricted drilling licence; and confirmed that the PPF and ANS-002A production well met all operating conditions and granted full compliance approval. Following a site inspection on 19 May 2025, the Nature Conservation Authority requested the creation of wetland biotopes within the retention and seepage pits and confirmed these are to be permanently preserved. The PPF provides the following opportunities to optimise field production at Anshof: increased production capacity (3000 BPD); capability to process oil from multiple wells; additional oil storage capacity; use of associated gas for power generation and process heat; enhanced automation requiring less manual operations; and utilisation of the facility to process oil from other fields discovered in the area. Figure 8: Photograph showing the Anshof-3 well (left side, photo) and the Anshof-2A well (right side, photo) producing into the PPF Anshof Permanent Production Facility Purchase Option During the quarter ADX exercised its option to purchase the PPF in accordance with the lease-purchase agreement between ADX VIE GmbH and Oneo GmbH & Co KG. The transfer from lease to ownership will take place after the conclusion of the rental period on or before 21 October 2025. The total lease payments of EUR 400,000 over the 24-month term, together with the amounts incurred by ADX to remedy the PPF's defects, will be set-off against the purchase price of EUR 1,000,000. As a result, the expected final payment for the acquisition of the PPF is anticipated to be approximately EUR 550,000. ADX's share of the final payment is 70%. The purchase of the PPF is an attractive option from a commercial and operating perspective for the ongoing production of the Anshof field. The PPF is required to continue production from the Anshof-3 and Anshof-2A wells. In addition to current Anshof production, the PPF can be used to process further production from planned nearfield appraisal and exploration programmes as well as to potentially process oil from other future discoveries within ADX' Upper Austria exploration licences. EXPLORATION ACTIVITIES Upper Austria AGS Licenses - Molasse Basin - Onshore Austria ADX is operator and holds the following interests in Upper Austria: ADX-AT-I: ADX holds a 100% interest in the ADX-AT-I exploration licence, except as follows: ADX' interest in part of this licence, the MND Investment Area, has reduced to 50% after completion of MND's investment obligations under the energy investment agreement relating to the MND Investment Area with the funding of the LICHT-1 well. ADX-AT-II: ADX holds a 100% interest in the ADX-AT-II exploration licence, except as follows: ADX holds a 75% interest in the Welchau Area; and ADX holds a 70% economic interest in the Anshof Field Area other than the Anshof-2A well in which ADX holds a 60% economic interest (refer ASX release dated 4 th June 2025). Upper Austria Licence Renewal and Area Variation The renewal of the ADX-AT-I and ADX-AT-II exploration licences was granted by the Austrian Ministry of Finance, until year end 2028 (refer ASX release dated 12 th February 2025). A licence area variation was also granted with a focus on increasing the number of Shallow Gas prospects and an extension of the Welchau-1 discovery area to accommodate Welchau follow up prospects such as Welchau Deep and Rossberg. Summary of six months to June 2025 main activities During the reporting period exploration and appraisal work in Upper Austria focussed on the following activities: Increasing the number of Shallow Gas prospects in the newly varied ADX-ATI and ADX-II areas, delivering eight (8) "ready to drill" prospects and several additional leads (refer ASX release dated 12 th February 2025); Commencement of farmout discussions for the first "drill ready" prospect (GOLD) in the ADX-AT-II varied area as well as follow up prospects adjacent to GOLD; Drill sites were secured and approved for three (3) back-to-back Shallow Gas wells in the ADX-AT-I ADX-AT-II licences; Mature the SGB and LIND prospects for drilling with a view to tie in to the nearby 3000 BPD Anshof PPF; and Following the suspension of further Welchau-1 flow testing due to Environmental Clearance objections, the main exploration activities efforts focused on the Welchau Deep prospect and the Rossberg prospect. The key exploration prospect maturation activities during the reporting period are highlighted in Figure 9 below. Figure 9: Upper Austrian ADX exploration and production licences showing the inventory of 24 prospects largely finalised in the first half year. Four focus areas are highlighted (2 Shallow Gas areas, the Anshof near field appraisal and exploration and Welchau follow-up prospects) ADX-AT-I and ADX-AT-II licence Shallow Gas Exploration Shallow Gas play exploration activities during the reporting period included: The finalisation of several new Shallow Gas prospects within the newly varied ADX-AT-I and ADX-AT-II licence areas; Data room preparation for the farmout of prospects held by ADX at a 100% economic interest as well as discussions with potential partners; and Permitting the first three (3) Shallow Gas prospects for drilling in the first quarter of 2026. The ASX release dated 31 July 2025 provides a detailed summary of the increasing number of Shallow Gas prospects. The focus was to finalise resources and risking for "drill ready" Shallow Gas prospects and further increase the number of new leads most of which will be matured to "drill ready" status within the next half year. Figure 10 below summarises the resource potential of matured Shallow Gas prospects. The first drilling target will be the GOLD prospect in the ADX-AT-II licence. The second target will most likely be the HOCH prospect likely to be followed by the nearby SHOE prospect (both located in the MND Investment Area within the ADX-AT-I licence) (See Figure 9 for map locations). Drill Ready Shallow Gas Prospects - Prospective Resources Estimates 1 (in Billion cubic feet) Licence Cluster / Prospect ADX Interest Low Best Mean High Chance of Geological Success CoS Gross Net ADX Gross Net ADX Gross Net ADX Gross Net ADX ADX-AT-II GOLD Cluster GOLD (A & C) 2 GOLD (B) 2 ZAUN GRAB 100% 100% 100% 100% 3.5 0.6 1.7 1.2 3.5 0.6 1.7 1.2 6.4 1.1 2.7 1.9 6.4 1.1 2.7 1.9 7.1 1.2 3 2 7.1 1.2 3 2 11.5 1.9 4.7 2.9 11.5 1.9 4.7 2.9 77% 81% 55% 55% Sub-total 7 7 12.1 12.1 13.3 13.3 21 21 OTHER ADX-AT-II STEY PIC 100% 100% 1.2 2.2 1.2 2.2 2.4 5.1 2.4 5.1 2.7 5.4 2.7 5.4 4.6 9 4.6 9 68% 75% Sub-total 3.4 3.4 7.5 7.5 8.1 8.1 13.6 13.6 ADX-AT-I HOCH Cluster HOCH SCHOE 50% 50% 1.5 1.9 0.8 1.0 5.2 5.3 2.6 2.7 8.0 6.4 4.0 3.2 17.3 12.2 8.7 6.1 62% 51% Sub-total 3.4 1.7 10.5 5.3 14.4 7.2 29.5 14.8 TOTAL Arithmetic Summation 13.8 12.1 30.1 24.9 35.8 28.6 64.1 49.4 Figure 10: Upper Austrian Drill Ready Shallow Gas Prospects. The GOLD, HOCH and SCHOE are likely to be the first shallow gas prospects drilled during the first quarter of 2026 1 Prospective Resource Estimates are unrisked recoverable. They have been estimated using probabilistic methodology in accordance with SPE-PRMS (2018). All totals are aggregated arithmetically. No further technical work is required for these prospects. 2 The GOLD-1 well is expected to target the A and C sands. The GOLD (B) sand is an additional target with a high Chance of Success of 81% that is a likely follow up to GOLD-1 well. The GOLD A, B and C sands are considered as one prospect. Cautionary Statement: Prospective Resources are those estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both a 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. ADX has executed agreements with landowners for the GOLD, HOCH and SHOE prospects' drill site locations in order to meet its drilling schedule (first quarter 2026). The Company's activities during the remainder of 2025 will focus on: Ongoing farmout discussions for GOLD prospect in ADX-AT-II varied licence area; Permitting, purchasing of long lead items and rig contracting for three (3) Shallow Gas prospects; and Ongoing new prospect generation in 100% equity held ADX-AT-I varied licence area. ADX-AT-II licence, Anshof Near Field Appraisal and Exploration Anshof Near Field Appraisal and Exploration activities during the reporting period included: Maturing two (2) exploration prospects near to the PPF for drilling in 2026 with a view to enhancing production from the Anshof near field area. The SGB and LIND prospects contain structural elements which are considered appraisal nature due to the proximity of nearby Eocene oil production wells. The prospective resource determined for seven (7) nearfield oil exploration prospects arithmetically added resulted in aggregate best technical estimate of 10.8 MMBOE 1 (Ref. ASX Release dated 27 August 2025); and Secure drill sites and permits for the drilling of the SGB and LIND prospects. Figure 11: Map showing exploration and appraisal targets (SGB, LIND and WIND) near the Anshof Field Area (Red coloured prospect names indicate appraisal nature) The Company's activities during the remainder of 2025 will focus on the following: Secure all drilling approvals for at least one (1) nearfield exploration / appraisal well, either the SGB or the LIND prospect with a view to drilling in mid-2026; and Finalise, risk and mature for drilling further Anshof near field oil prospects relatively close to the Anshof production area. The GRB and PERG prospects shown above have significant prospective resources upside which may enhance their potential as future exploration prospects. New prospects may also be matured from already identified leads (not discussed at this time). Welchau Investment Area Exploration ADX holds a 75% economic interest in the Welchau Investment Area. The exploration activities within the Welchau Investment Area undertaken during the reporting period included: The preparation for further testing of the Welchau-1 well following Administrative Court decision in relation environmental objections; Providing necessary permitting data including the Austrian Ministry for Finance (BMF) approvals to the local Upper Austrian Administrative Court to secure a decision in relation to objections with respect to environmental clearances previously received by ADX with respect to the Welchau-1 well (refer 30 June 2025 Quarterly Report and ASX release dated 31 st July 2025); Reprocessing (and depth conversion) of existing 2D seismic data incorporating detailed Welchau-1 logging and well test data; Undertaking petroleum system modelling and surface geology work together with the University of Vienna to improve understanding of the Welchau-1 oil and condensate discovery; and Incorporating geological studies into prospect maturation work for two (2) follow-up prospects (Welchau Deep and Rossberg). The exploration work described above (which incorporated new seismic reprocessing) has enhanced the Welchau Deep and Rossberg prospects. The Welchau Deep prospect is proximal in depth to the historic Molln-1 gas discovery which tested gas and condensate in 1989. The results of Welchau-1 and the proximity to Molln-1 have improved probability of success for Welchau Deep. The Company's activities during the remainder of 2025 will focus on the following: Further define the highly attractive Welchau Deep prospect in terms of faulting, fracturing and proven hydrocarbon migration; Surface geology studies especially for the shallow and relatively low cost to drill Rossberg prospect are required to reduce the top seal risk. This has been partially achieved by mapping of the Lunz sealing sediments over a large area. Plan newly developed, modern and cost-effective 2D seismic acquisition which is expected to further increase the probability of success for the Welchau Deep prospect by improving imaging of duplex structures. Figure 12 below shows the reprocessed and re-interpreted seismic line over the two Molln-1 gas reservoirs and the Welchau-1 intersection together with the Welchau Deep and the Rossberg prospects. Figure 12: Cross section showing the Welchau-1 top structure, the Welchau Deep prospect, the Rossberg prospect and the historic Molln gas discovery (which tested gas condensate in 1989) Parta Exploration Permit and the Iecea Mare Production Licence - Onshore Romania ADX holds a 49.2% shareholding in Danube Petroleum Limited (Danube). The remaining shareholding in Danube is held by Reabold Resources Plc. Danube via its wholly owned subsidiary, ADX Energy Panonia S.R.L., holds a 100% interest in the Parta Exploration license (including a 100% interest in the Parta Appraisal Sole Risk Project) and a 100% interest in the Iecea Mare Production license. ADX is the operator of the permit pursuant to a services agreement with Danube. Activities during the reporting period included: Reviewing the potential to utilise the Iecea Mica -1 well within the Iecea Mare production licence for geothermal energy production. Discussions with the National Agency for Resources and Minerals ("NAMR") regarding the approval of ADX Energy Panonia S.R.L as a recognized operator in Romania. Discussions with NAMR regarding potential work program alternatives for the Parta Exploration license rather than a new extension which would require extensive Ministerial approvals. Sicily Channel C.R150.AU Exploration Permit - Offshore Italy ADX is operator and holds a 100% interest in the C.R150.AU Exploration Permit The Permit was formally awarded to ADX in August 2025 by the Italian Ministry of Environment and Energy Security (Ministry) (refer ASX Release dated 17 August 2025). Exploration activities during the reporting period included: Providing the Ministry with all required legal, technical and financial data to obtain the final approvals as qualified operator and secure award of the permit for an initial period of up to six (6) years; Technical update of gas prospects identified by ADX so far, incorporating recent geological data available from analogous fields at Argo-Cassiopea (operated by ENI) which commenced production in August 2024; and Review exploration project economics based on a potential subsea development tied into nearby onshore infrastructure using productivity assumptions from analogous Upper Miocene to Pliocene sandstone reservoirs. The key outcomes from the above activities were: The formal award subsequent to the reporting period of the C.R150.AU Exploration Permit and ADX' qualification as an operator of exploration and production in Italy (refer ASX release dated 17 August 2025); and Confirmation of potentially low CO 2 biogenic gas recorded in historic wells which potentially intersected highly productivity gas sandstone reservoirs that may be present within five (5) mapped prospects with an estimated arithmetic total of 369 BCF 1 best technical prospective resources (refer ASX release dated 30 August 2022); and 1 Cautionary Statement: Prospective Resources are those estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both a 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. Identified potential for increased resources due to stacked gas sands seen in wells at the Argo-Cassiopea fields which are possibly present in the C.R150.AU Exploration Permit area. The Company's activities during the remainder of 2025 will focus on the following: Purchase of additional historical high quality 2D seismic which was acquired by ENI when exploring for deeper oil prospects in the permit area; Acquire additional well data including older oil production and exploration wells from ENI; Update prospect analysis and resources estimates utilising both the historic Sicily Channel 2D seismic data from ENI and the newer and close by modern dual sensor 3D seismic previously acquired by ADX in Tunisia and Italy (see Figure 13 below); and Commission a third-party competent persons report to provide independent resources estimates based on additional mapping developed by ADX incorporating all available data. Figure 13: Location map showing the C.R150.AU Exploration Permit, water depth, nearby Argo-Cassiopea (offshore) and Lippone (onshore) producing fields, as well as local gas pipeline infrastructures and the ADX acquitted Tunisia-Italy 3D seismic PERMITS AND LICENCES LIST Permits and Licences held at the beginning and the end of the half year reporting period as per below table: Permit % held at the beginning of the Year % held at 30 June 2025 % change Onshore Austria, Zistersdorf and Gaiselberg Production Licence 100% 100% - Upper Austria ADX-AT-I AGS Licence (a) 100% 100% - Upper Austria ADX-AT-II AGS Licence (b) 100% 100% - Onshore Romania, Parta (c) 100% 100% - Onshore Romania, Iecea Mare Production Licence (c) 100% 100% - Offshore Italy, C.R150.AU Exploration Permit (d) 100% 100% - Note a: ADX-AT-I Concession agreement for exploration, production and gas storage in Upper Austria. ADX holds a 100% interest in the ADX-AT-I exploration licence. ADX' interest in part of this licence, the MND Investment Area, has reduced to 50% due to the completion of MND's investment obligations under the energy investment agreement relating to the MND Investment Area with the funding of the LICHT-1 well (Ref. ASX release dated 8 January 2024). Note b: ADX-AT-II Concession agreement for exploration, production and gas storage in Upper Austria. ADX holds a 100% interest in the ADX-AT-II exploration licence, except as follows: ADX holds a 75% economic interest in the Welchau Area of the ADX-AT-II licence; and ADX holds a 70% economic interest in Anshof Field Area of the ADX-AT-II licence other than the Anshof-2A well where ADX holds a 60% economic interest. Note c: ADX holds a 49.2% shareholding in Danube Petroleum Limited (Danube). The remaining shareholding in Danube is held by Reabold Resources Plc. Danube via ADX Energy Panonia holds a 100% interest in the Parta Exploration licence (including a 100% interest in the Parta Appraisal Sole Risk Project) and a 100% interest in the Iecea Mare Production licence. ADX is the operator of the permit pursuant to a Services Agreement with Danube. Note d: After the reporting date ADX was formally awarded the C.R150.AU Exploration Permit by the Italian Designated Authority and ADX has accepted the permit as a gas exploration permit. The permit was previously named as "d363C.R- .AX permit". Persons compiling information about Hydrocarbons: Pursuant to the requirements of the ASX Listing Rule 5.31, 5.41 and 5.42 the technical and reserves information relating to Austria and Italy contained in this release has been reviewed by Paul Fink as part of the due diligence process on behalf of ADX. Mr Fink is Technical Director of ADX Energy Ltd is a qualified geophysicist with 30 years of technical, commercial and management experience in exploration for, appraisal and development of oil and gas resources. Mr Fink has reviewed the results, procedures and data contained in this report and considers the resource estimates to be fairly represented. Mr Fink has consented to the inclusion of this information in the form and context in which it appears. Mr Fink is a member of the EAGE (European Association of Geoscientists & Engineers) and FIDIC (Federation of Consulting Engineers). Previous Estimates of Reserves and Resources: ADX confirms that it is not aware of any new information or data that may materially affect the information included in the relevant market announcements for reserves or resources and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. SUBSEQUENT EVENTS Equity Issues in Lieu of Remuneration On 4 August 2025, ADX issued the following shares and options. These amounts were accrued in the 30 June 2025 financial statements: 574,282 shares ($16,654) issued pursuant to ADX's Directors' Share Plan, approved by Shareholders on 22 May 2025. The shares were issued to directors in consideration of remuneration elected to be paid via shares for the quarter ended 30 June 2025. 2,404,218 shares ($68,765) issued to ADX's Company Secretaries and consultants in consideration of remuneration elected to be paid via shares for the quarter ended 30 June 2025. 1,005,387 Options ($29,156) granted to Directors Ian Tchacos and Paul Fink, as approved by Shareholders on 22 May 2025. The options were granted in consideration of consultancy fees remuneration elected to be paid via options for the quarter ended 30 June 2025. The options have a nil exercise price and expire on 31 July 2029. No other matter or circumstance has arisen since 30 June 2025 that has significantly affected or may significantly affect the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity, in subsequent financial years. AUDITOR'S INDEPENDENCE DECLARATION A copy of the auditor's independence declaration as required by section 307C of the Corporations Act 2001 is set out on page 25. This report is made in accordance with a resolution of the directors. Ian Tchacos Executive Chairman Perth, Western Australia, 11 September 2025 D I R E C T O R S ' D E C L A R A T I O N In accordance with a resolution of the Directors of ADX Energy Ltd, I state that: In the opinion of the directors: The financial statements and notes are in accordance with the Corporations Act 2001, including: giving a true and fair view of the Group's financial position as at 30 June 2025 and of its performance for the half-year ended on that date; and complying with Australian Accounting Standard 134 Interim Financial Reporting and the Corporations Regulations 2001; and there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. This declaration has been made after receiving the declarations required to be made to the directors in accordance with Section 295A of the Corporations Act 2001 for the half-year ended 30 June 2025. This declaration is signed in accordance with a resolution of the Board of Directors. Ian Tchacos Executive Chairman Perth, Western Australia, 11 September 2025 AUDITOR'S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 In.Corp Audit & Assurance Pty Ltd ABN 14 129 769 151 To the directors of ADX Energy Ltd: As lead auditor of the review of ADX Energy Ltd for the half-year ended 30 June 2025, I declare that, to the best of my knowledge and belief,there have been: no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and no contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of ADX Energy Ltd and the entities it controlled during the half-year. Level 1 6-10 O'Connell Street SYDNEY NSW 2000 Suite 11, Level 1 4 Ventnor Avenue WEST PERTH WA 6005 GPO BOX 542 SYDNEY NSW 2001 T +61 2 8999 1199 E [email protected] W incorpadvisory.au In.Corp Audit & Assurance Pty Ltd Graham Webb Director 11 September 2025 Liability limited by a scheme approved under Professional Standards Legislation 25 Half-year ended 30 June 2025 $ 6,160,469 (6,772,467) Half-year ended 30 June 2024 $ 4,971,267 (5,840,837) (611,998) (869,570) 362,825 263,239 (2,140,855) (1,854,905) (1,752,240) (814,926) (235,418) (202,499) (161,717) (281,439) (4,290,230) (3,153,769) (4,539,403) (3,760,100) (429) 434,152 (4,539,832) (3,325,948) (4,484,362) (3,280,545) (55,470) (45,403) (4,539,832) (3,325,948) 1,179,151 32,483 - 13,672 1,179,151 46,155 (3,360,681) (3,279,793) (4,149,915) (3,242,583) 789,234 (37,210) (3,360,681) (3,279,793) Cents Per Share (0.78) Cents Per Share (0.70) Note Operating revenue 3 Cost of sales 3 Gross profit/(loss) Other income 3 Other Expenses: Administration, staff and corporate expenses, 3 net of recoveries from exploration projects Exploration expensed Finance costs 3 Restoration expenses - changes in abandonment provision 9 Total other expenses Loss before income tax Income tax (expense)/benefit 5 Net loss for the half-year Loss is attributable to: Owners of ADX Energy Ltd Non-Controlling Interest 12 Other Comprehensive Income Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations Hedge accounting Other comprehensive income for the period, net of tax Total comprehensive income for the period Total comprehensive income is attributable to: Owners of ADX Energy Ltd Non-Controlling Interest Earnings per share for loss attributable to the ordinary equity holders of the Company: Basic loss per share The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes. As at As at 30 June 31 December 2025 2024 $ $ 4,782,787 9,081,597 2,851,774 3,457,664 3,028,783 2,898,333 10,663,344 15,437,594 1,221,607 1,142,417 35,742,905 33,570,401 1,131,207 1,122,392 38,095,719 35,835,210 48,759,063 51,272,804 4,255,700 4,869,630 1,203,879 1,890,571 121,518 113,626 409,959 307,398 5,991,056 7,181,225 1,046,789 1,035,614 21,944,612 20,318,163 22,991,401 21,353,777 28,982,457 28,535,002 19,776,606 22,737,802 105,349,887 105,161,657 6,460,312 5,914,610 (100,625,241) (96,140,879) 11,184,959 14,935,388 8,591,648 7,802,414 19,776,606 22,737,802 Note ASSETS Current Assets Cash and cash equivalents Trade and other receivables Inventories Total Current Assets Non-Current Assets Other receivables Oil and gas properties 7 Right of use assets Total Non-Current Assets Total Assets LIABILITIES Current Liabilities Trade and other payables Borrowings 8 Lease liabilities - right of use assets Provisions 9 Total Current Liabilities Non-Current Liabilities Lease liabilities - right of use assets Provisions 9 Total Non-Current Liabilities Total Liabilities Net Assets EQUITY Issued capital 10 Reserves 11 Accumulated losses Capital and reserves attributable to owners of ADX Energy Ltd Non-controlling interests 12 Total Equity The above consolidated statement of financial position should be read in conjunction with the accompanying notes. Issued Capital Reserves Accumulated Losses Non-controlling Interests Total Equity $ $ $ $ $ At 1 January 2024 90,503,290 5,399,490 (88,273,347) 8,112,092 15,741,525 Loss for the half-year Other comprehensive income - - -37,962 (3,280,545) - (45,403) 8,193 (3,325,948) 46,155 Total comprehensive income for the period, net of tax - 37,962 (3,280,545) (37,210) (3,279,793) Transactions with owners in their capacity as owners: Issue of share capital 14,946,570 - - - 14,946,570 Share-based payments - options - 49,225 - - 49,225 Share issue costs (819,884) - - - (819,884) 14,126,686 49,225 - - 14,175,911 At 30 June 2024 104,629,976 5,486,677 (91,553,892) 8,074,882 26,637,643 At 1 January 2025 Loss for the half-year Other comprehensive income 105,161,657 - - 5,914,610 -334,447 (96,140,879) (4,484,362) - 7,802,414 (55,470) 844,704 22,737,802 (4,539,832) 1,179,151 Total comprehensive income for the period, net of tax - 334,447 (4,484,362) 789,234 (3,360,681) Transactions with owners in their capacity as owners: Issue of share capital 188,230 - - - 188,230 Costs of issue of share capital - - - - - Share based payments - options (note 11) - 211,255 - - 211,255 188,230 211,255 - - 399,485 At 30 June 2025 105,349,887 6,460,312 (100,625,241) 8,591,648 19,776,606 The above-consolidated statement of changes in equity should be read in conjunction with the accompanying notes. Half-year Half-year ended ended 30 June 2025 30 June 2024 $ $ 6,444,651 7,046,565 (8,156,649) (8,233,672) 70,048 26,512 (92,661) (78,916) - 139,720 (1,734,611) (1,099,791) (1,982,852) (13,534,299) - (76,502) - 6,586,916 (474,401) (945,048) (2,457,253) (7,968,933) - 13,500,000 - 1,296,611 - (819,908) (250,000) (303,959) 267,334 - (82,301) (77,988) (330,900) - (395,867) 13,594,756 (4,587,731) 4,526,032 9,081,597 8,007,441 288,921 46,158 4,782,787 12,579,631 CONSOLIDATED Cash Flows from Operating Activities Receipts in the ordinary course of activities, including net GST refunds Payments to suppliers and employees, including exploration expenses Interest received Interest paid Income taxes paid Net cash flows from/(used in) operating activities Cash Flows from Investing Activities Payments for oil and gas properties - Austrian facilities Payments for oil and gas properties - appraisal/development Receipts from farmouts/partners Payments to partners Net cash flows from/(used in) investing activities Cash Flows from Financing Activities Proceeds from the issue of shares Proceeds from the exercise of options Payment of share issue costs Loan notes repaid Advance from shareholder in subsidiary Danube Petroleum Payment of lease liabilities (right-of-use assets) Insurance funding repayments Net cash flows from/(used in) financing activities Net (Decrease)/Increase In Cash and Cash Equivalents Cash and Cash Equivalents at the beginning of half-year Effect of foreign exchange rates Cash and Cash Equivalents at the end of half-year The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. A D X E N E R G Y L T D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 5 1. BASIS OF PREPARATION OF HALF-YEAR FINANCIAL STATEMENTS ADX Energy Ltd is a company limited by shares, domiciled and incorporated in Australia. Its shares are publicly traded on the Australian Stock Exchange. This consolidated financial report for the half-year ended 30 June 2025 has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001. The half-year financial report does not include all notes of the type normally included within the Annual Financial Report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report. The half-year financial report should be read in conjunction with the annual financial report for the year ended 31 December 2024 and any public announcements made by ADX Energy Ltd during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period. ADX Energy Ltd is a for-profit entity for the purpose of preparing the half-year financial statements. The half year consolidated financial statements comprise the financial statements of ADX Energy Ltd and its subsidiaries ("Group") as at 30 June 2025. Functional and presentation currency ADX Energy Ltd has identified Australian dollars as its functional currency on the basis that all fundraising is in Australian dollars, and loans to subsidiary companies are made from Australian dollars. ADX's subsidiaries have the following functional currencies: AuDAX Energy Srl - EUR Bull Petroleum Pty Ltd - AUD Danube Petroleum Limited - GBP ADX Energy Panonia Srl - EUR Terra Energy Limited - GBP ADX VIE GmbH - EUR Kathari Energia Limited - GBP Kathari Energia GmbH - EUR The presentation currency of the Group is Australian dollars (AUD). Adoption of New or Revised Standards The accounting policies and methods of computation are the same as those adopted in the most recent annual financial report. All new and amended Accounting Standards and Interpretations effective from 1 January 2025 have been adopted. None of these amended standards had a material impact on the ADX Group. The Group has not elected to early adopt any new standards or amendments. 30

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