ADX Energy targets next phase of gas exploration drilling later this year after locking away MND funding deal
Special Report: ADX Energy has completed its investment agreement with MND providing a €0.45 million and guarantees up to €4.5 million for exploration drilling within the ADX-AT-I licence in Upper Austria.
Under the terms of an Energy Investment Agreement (EIA) announced last month, MND Austria has now paid back costs of €450,000 (~$730,000) to a subsidiary of ADX Energy (ASX: ADX) and committed €4.5 million (~$7.34 million) for exploration drilling to earn 50% of a dedicated “investment area” within the licence in question.
The transaction was completed following the recent clearance of the investment area partnership documentation by Austria’s Ministry of Finance (BMF).
ADX will be the operator of the investment area and retains a 100% interest over the remainder of the ADX-AT-I licence.
It is expected one of the LICHT or IRR gas exploration prospects hosted within the investment area will be drilled during the second half of 2024. Both are considered technically mature for drilling.
A drilling permit was recently granted for the LICHT prospect, as well as environmental clearance.
The IRR prospect is located next to an analogous discovery which to date has produced over 150 BCF of gas.
Both prospects are also proximal to infrastructure which ADX believes provides opportunity for “rapid and low cost” development.
ADX executive chairman Ian Tchacos said both his company and MND were looking forward to the proposed gas exploration program within the ADX-AT-I licence.
“We are pleased to further extend our collaborative relationship with MND across the Anshof Oil Field, as well as exploration drilling opportunities within the ADX-AT-I licence,” he said.
“This transaction ensures ongoing exploration investment without the need to raise further shareholder funds – a strategy which provides upside to our shareholders with minimal financial exposure.”
MND reportedly generated revenue of approximately €8.5 billion in 2022 from a combination of production and exploration, drilling and services, energy storage and energy trading across Europe.
The company is active in the Czech Republic, Germany, Ukraine, Hungary and Slovakia. Austria is a new country for MND’s exploration and production business.
This article was developed in collaboration with ADX Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.