ADX Energy Ltd
ABN 50 009 058 646
ANNUAL REPORT
31 DECEMBER 2024
ADX ENERGY LTD
CONTENTS
- 1 -
CORPORATE DIRECTORY .................................................................................................................................................. 2
CHAIRMAN’S REPORT ...................................................................................................................................................... 3
OPERATIONS REPORT .................................................................................................................................................... 11
DIRECTORS’ REPORT ...................................................................................................................................................... 42
AUDITOR’S INDEPENDENCE DECLARATION .................................................................................................................... 57
DIRECTORS’ DECLARATION ............................................................................................................................................ 58
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ............................................ 59
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .................................................................................................. 60
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ................................................................................................... 61
CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................................................................... 62
NOTES TO THE FINANCIAL STATEMENTS ........................................................................................................................ 63
CONSOLIDATED ENTITY DISCLOSURE STATEMENT ....................................................................................................... 101
INDEPENDENT AUDIT REPORT ..................................................................................................................................... 102
ADDITIONAL SHAREHOLDER INFORMATION ................................................................................................................ 107
TENEMENT / PERMIT SCHEDULE .................................................................................................................................. 111
ADX ENERGY LTD
CORPORATE DIRECTORY
__________________________________________________________________________________________________
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Directors
Ian Tchacos (Executive Chairman)
Paul Fink (Technical Director / CEO)
Edouard Etienvre (Non-Executive Director)
John Begg (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: www.adxenergy.com.au
Email: admin@adxenergy.com.au
Share Registry
Computershare Investor Services Pty Ltd
Level 17
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 6005
ADX ENERGY LTD
CHAIRMAN’S REPORT
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Dear Shareholder,
During the year ended 31 December 2024, ADX Energy Ltd (“ADX” or the “Company”) has been focussed on developing its
business in Austria as well as securing an exploration licence in the Sicily Channel, offshore Italy. In Austria, ADX had an
exceptionally active year for a company of ADX’ size, with the drilling of three wells and the installation of an oil production,
storage and offloading facility. Key activities included the drilling and testing of the Welchau-1 exploration well, the
installation of a permanent production facility at Anshof, the drilling of the Asnhof-2A appraisal well, the drilling of the
LICHT-1 exploration well and maintaining stable production at the Vienna Basin fields.
The safety of our people, including our contractors, and the protection of the environment within the communities in
which we work is of paramount importance to ADX. Despite a very active year from an operations perspective, the Board
of ADX is pleased 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 commenced planning for the precise measurement,
quantification, monitoring, reporting, and verification of methane emissions. This will enable ADX to comply with new
methane emission regulations, which came into force within the European Union (EU) on the 4th of August 2024 under a
three-year phasing-in period.
The announcement of gas shows over a large gross column, as well as condensate recoveries from downhole sampling at
the Welchau-1 well, was a major event for the Company. The recovery of formation water during testing of the Steinalm
formation, where hydrocarbon shows were observed during drilling, was a major disappointment due to the potential of
Welchau. The disruption to testing operations in December 2024 due to an objection to the environmental clearance for
Welchau-1 drilling and testing from four registered Austrian environmental non-governmental organisations was a further
setback. Welchau-1 testing has been suspended until the State Administrative Court of Upper Austria clarifies the approval
situation during the first quarter of 2025. At the end of the reporting period, the hydrocarbon potential of Welchau
remained uncertain due to the inability to complete the testing program.
Carbonate reservoirs provide an exceptional hydrocarbon reserves contribution in many of the world’s major hydrocarbon
provinces. Carbonates or limestone reservoirs, such as those encountered at Welchau are complicated to evaluate and
develop. The results of Welchau-1 and the historic Molln-1 gas condensate discovery, which was the primary motivation
for drilling Welchau, demonstrate the potential for a significant hydrocarbon play which ADX continues to evaluate with
the assistance of international experts.
The ongoing development of the Anshof oil discovery in Upper Austria with the successful installation and commissioning
of a permanent production, storage and offloading facility is an important step for the Company. Oil processed at the
facility is transported a short distance by truck to a railhead for delivery to the OMV refinery in Vienna. The Anshof facility
has the ability to process up to 3,000 barrels per day of oil and water, which is important for the ongoing appraisal and
production of the Anshof field as well as the future tie-in of multiple potential, nearfield appraisal and exploration
opportunities which ADX continues to mature for drilling in the near future. The Anshof-2A appraisal well was a mixed
success. The well encountered an oil column that was approximately six times larger than that encountered in the Anshof-
3 discovery well, however, the production performance of the well was below expectation. Despite a thicker and more
permeable reservoir, a greater-than-expected water cut is being observed from the well. The Anshof-3 and Anshof-2A
wells provide stable, profitable oil production providing important ongoing revenue.
The ongoing maturation and development of the Eocene oil play within ADX’ acreage utilising the Anshof Permanent
Production Facility (Anshof PPF) is an important organic production growth opportunity. In addition to the Eocene oil
development play, the Anshof PPF can be used to process other potential oil discoveries in ADX’ Upper Austrian exploration
acreage.
ADX ENERGY LTD
CHAIRMAN’S REPORT
- 4 -
Figure 1: Drilling of Anshof-2A appraisal well and production operations at the Anshof Field in Upper Austria
During the period, ADX continued to produce stable, long life and low emissions oil and gas from its Vienna Basin Fields.
Vienna Basin Fields production remains an important source of cash flow for the Company. To maintain high levels of well-
up time, our operations team has carried out well work over programs to rectify casing corrosion and the effects of sand
production on downhole pumping equipment. Another necessary initiative undertaken during the year has been engineering
and procurement work required for a CO2 removal facility. The facility is required to keep Vienna Basin-associated gas within
sales gas pipeline specification, thereby ensuring the ongoing sale of Vienna Basin gas and avoiding the possible curtailment
of oil production.
In addition to our oil and gas operations, we continue to investigate the opportunity for value-adding and additional
complementary energy projects such as a Solar Park, Green Hydrogen Production and Hydrogen Storage in a depleted
underground reservoir. These activities are in line with ADX’ ambition to further reduce the carbon footprint of our low-
emissions conventional oil and gas production operations, which in terms of CO2/boe is approximately 20 times lower than
Austria’s large-scale gas imports from Russia (IEA international data). These initiatives are not only potentially profitable;
they are an important aspect of ADX’s ongoing licence to operate in the European energy environment.
ADX is fortunate to operate in a very positive environment for the exploration and development of oil and gas. In Austria,
we benefit from rapid permitting, legal transparency, flexible licencing and supportive designated Authority. Access to high-
quality seismic data has enabled the rapid development and renewal of the Company’s exploration portfolio. Access to
infrastructure reduces cost and minimises development time frames. ADX is one of only three operators in Austria. ADX in-
country operating capability has provided the ability to originate opportunities, execute projects and add value through
farmouts.
In October 2024, ADX via its 100% subsidiary Audax Energy S.r.l. (Audax) was offered the d 363 C.R-.AX permit (Permit) in
the Sicily Channel by the Italian Ministry of Environment and Energy Security (Ministry). The Permit offering was following
verification of ADX’ financial and technical capability. Audax accepted the licence in accordance with the current regulatory
framework, which focuses on gas exploration. The formal Ministerial approval of the Permit is expected in early 2025.
ADX ENERGY LTD
CHAIRMAN’S REPORT
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The Permit is highly prospective for high-quality gas with minimal impurities (sweet gas), making future discoveries likely to
be commercially attractive. The prospectivity of the Permit is enhanced by the proven existence of sweet gas in the Permit,
confirmed by several historical wells and potentially highly productive sandstone reservoirs, which are geologically
analogous to two nearby producing fields. During the application process, ADX has identified a number of attractive
exploration prospects using a high-quality 2D seismic data set available across the permit. The combination of shallow water
depths, shallow drill depths, productive reservoirs and favourable fiscal terms improves the potential economic viability of
any discovery.
The expected award of the Permit represents an important strategic and commercial development for ADX given the strong
demand for clean domestically produced gas in Italy and Europe, the existence of proximal gas pipeline infrastructure and
the recent commencement of production from ENI’s Argo Cassiopea gas field development which could be a tie in
opportunity for future discoveries. Importantly, Italy has become a positive, pro-development jurisdiction which supports
European Clean Gas following the election of Ms Giorgia Meloni and the formation of a centre-right coalition government.
Figure 2: The d 363 C.R-.AX permit location in relation to the geologically analogous Lippone Mazara Field and Argo Cassiopea Fields
After a protracted period since applying for the d 363 C.R-.AX permit, we are pleased to be offered this highly prospective
licence by the Italian Authorities. Italy has resumed energy-related activities and has become a pro-development jurisdiction
for gas. ADX has been able to purchase high-quality 2D seismic data during the gazettal process, which has enabled the
Company to assess the potential of the Permit before committing to a work program.
Italy and Austria rely heavily on imported oil and gas, making the exploration for and development of new oil and gas
resources a strategic imperative as is the case for the majority of Europe. In Austria, we enjoy the benefits of high-value oil
sold at Brent price equivalent, and gas is sold at Dutch Title Transfer Pricing (TTF). TTF is a highly liquid, premium gas market
achieving pricing multiples of 3 to 5 compared to US domestic prices. Our observations of current trends in European energy
markets are summarised at the end of this Chairman’s Report.
ADX ENERGY LTD
CHAIRMAN’S REPORT
- 6 -
In the short term, ADX operational focus will be based on rapidly increasing the Company’s production base and its cash
flow generation with an increasing emphasis on gas. In parallel, with lower-risk exploration and appraisal objectives, we
are maturing high-impact opportunities that could provide multiples of growth. To deliver these objectives our asset
priorities can be summarised as follows:
Maximise Austrian oil production from the Vienna Basin and Anshof fields
Restore production from non-productive wells in the Vienna basin,
Maximise production from the Anshof wells, and
Add production and profitability from nearfield appraisal and exploration prospects.
Low-risk, low-cost gas exploration play development in Upper Austria
Continue mapping the proven gas play across ADX’ revised acreage position using advanced seismic processing
and AI techniques,
Develop drilling programs to minimise drilling costs for shallow wells,
Mature multiple shallow, low-risk gas targets near to infrastructure that can be rapidly commercialised, and
Undertake land acquisition, permitting and secure rig slots for drilling.
High-impact growth from Welchau play and the Sicily Channel permit
Welchau-1 ongoing production testing and evaluation,
Evaluate exploration follow-up from potential Welchau deep and the nearby Rossberg prospect, and
Mature Sicily channel gas prospects for farmout and drilling.
It has been a very busy and challenging year for ADX. Your Board believes that your Company has a compelling and unique
investment proposition provided by the combination of production, reserves expansion and an evolving exploration
portfolio that can provide transformative growth. We intend to continue to fund our exploration programs by farmin
transactions complemented by production and equity. ADX is fortunate to have a healthy cash balance at year-end, which
enables us to continue to fund our near-term asset development activities.
We welcome Mr John Begg to the Board of ADX. John is a geologist who has a proven record of finding and commercialising
hydrocarbon fields across three continents. John’s skills and experience further strengthens the board of ADX.
Below we have provided as an annexure an overview of the natural gas market and crude oil market in Europe which
identifies a more optimistic immediate supply demand outlook for gas versus oil. Based on this analysis and the strategic
importance of gas, particularly in Europe as a transition fuel as well as the ongoing security of supply concerns resulting
from the Russia Ukraine conflict the Board of ADX has made the decision to weight the development of the Company’s
portfolio towards gas. This priority towards gas is expected to be delivered in the short term with ADX Shallow Gas
Exploration Play in Upper Austria and in the medium term from offshore Sicily Channel as well as deeper plays in Upper
Austria.
We thank you for your support and look forward to reporting the Company’s progress in the coming year.
IAN TCHACOS
Executive Chairman
ADX ENERGY LTD
CHAIRMAN’S REPORT
- 7 -
ANNEXURE
Oil and Natural Gas Markets Overview
Overview of the natural gas market in Europe
During the reporting period, global gas demand grew by 2.5%, which is equivalent to 100 billion cubic metres (bcm),
reaching an all-time high of 4,200 bcm after a year of rebalancing (2023) that followed the supply shock faced in 2022.
Growth was mainly driven by strong demand in China and India (up 10% year-on-year) and the recovery of industrial
demand in Asia and Europe. The International Energy Agency (IEA) anticipates that global gas demand will grow by 2.3% in
2025.
Liquified natural gas (LNG) supply increased by a modest 2% (6 bcm) in 2024 due to feed gas supply issues, plant outages
and project delays. LNG supply is expected to grow at a faster pace in 2025 (+6% equivalent to 31 bcm) with several new
projects coming onstream.
With LNG supply growth below the historical average, the worldwide gas supply/demand balance remains tight, and the
market is sensitive to regional weather conditions (cold spells, droughts, heat waves, etc.) and vulnerable to supply chain
disruptions (such as security issues in the Red Sea and drought in the Panama Canal experienced during the reporting year).
The increased reliance on LNG to meet global gas demand as a result of the displacement of Russian piped gas in Europe
has made the global gas market more interconnected.
During the reporting year, the overall gas consumption in Europe dropped by approx. 2% (6 bcm) as a result of a significant
decrease (>10%) in gas demand for electricity generation due to the continued expansion of wind and solar power
generation and improved availability of nuclear and hydro-power plants. This decline was partially compensated by the
recovery of industrial consumption (+9% or 10 bcm) which still remains 10% below its 2021 level. The improved industrial
consumption in Europe demonstrates that a significant portion of the demand destruction was caused by record-high prices
reached in 2022 and 2023 as opposed to structural changes. The IEA forecasts that gas demand in Europe will increase by
1% in 2025, reversing the decline faced over the past 2 years.
Gas supply from Norway improved during the reporting period after extensive shutdowns for maintenance which resulted
in production interruptions and lower gas deliveries in 2023. Norway contributed to 33% of the European Union (EU) gas
supply in 2024. Despite this positive development, Europe is facing multiple gas supply challenges. Domestic gas supply
dropped by 7% in 2024 due to the closure of the Groningen field in The Netherlands and the continuing decline of
production in the U.K. North Sea (mature fields and lack of investment). In addition, with the expiry of the transit and
interconnector agreements between Ukraine and Russia on 31 December 2024, Europe lost approx. 4% of its gas supply
(15 bcm per annum). This lost supply is primarily affecting Austria (6 bcm per annum), Slovakia, Hungary and Moldova,
where Russia piped gas transiting via Ukraine represented 65% of the overall gas supply. However, these countries have
significant gas storage facilities and indirect access to the LNG market through extensive pipeline networks and floating
storage regasification units located in Germany and Italy.
ADX ENERGY LTD
CHAIRMAN’S REPORT
- 8 -
Therefore, LNG imports (which contributed to 26% of the EU’s gas supply in 2024) are expected to increase by 11% (15
bcm) in 2025 since the Turk stream pipeline (delivering Russian gas) and other sources of piped gas (Norway, Algeria, Libya
and Azerbaijan) are operating at full capacity. The LNG market is likely to remain tight in 2025 with increased competition
for cargoes and elevated prices until further supply comes on stream in 2025. Tightness in the LNG market is expected from
the following factors:
Increased reliance on LNG imports in Europe combined with strong demand from Asian countries (China, Japan, South
Korea, India and Taiwan),
New U.S. sanctions on Russian gas liquefaction facilities (applying to 25% of the output) and Russian ice-breaking LNG
carriers, and
Lagging LNG supply ramp-up from new projects
Fierce competition between European LNG buyers and Asian LNG importers to secure spot LNG cargoes was observed
during the fourth quarter of 2024.
Source: Bruegel. Data as of 22 January 2025
Figure 3: EU’s quarterly natural gas imports in 2024
Despite mixed supply/demand fundamentals during the reporting period, gas prices in Europe increased by 57% between
Q1 2024 and Q4 2024 (quarterly average) reflective of growing uncertainty regarding gas supply after the expiry of the
transit and interconnector agreements between Ukraine and Russia.
76
153
222
298
0
50
100
150
200
250
300
350
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
Q1-24
Q2-24
Q3-24
Q4-24
Billion cubic metres (cumulative)
Billion cubic metres (quarterly)
Russia (piped gas)
U.S. LNG
Other LNG
Norway
Algeria
U.K.
Azerbaijan
Libya
Cumulative gas supply
ADX ENERGY LTD
CHAIRMAN’S REPORT
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Source: CME and ADX Energy Ltd
Figure 4: Gas prices 2018-2024 (Dutch TTF, U.S. Natural Gas and LNG Japan-Korea Marker)
The evolution of gas prices in Europe (Dutch TTF benchmark) since 2022 shows a close alignment with spot LNG prices (JKM
Marker) consistent with the increasing proportion of LNG in Europe’s gas supply mix. This trend is expected to continue in
2025 with Europe using a larger proportion of LNG (31% of the total gas supply versus 26% in 2024) in order to replace
Russian piped gas previously transiting via Ukraine.
Gas prices in Europe are also more exposed to sudden spikes caused by weather conditions and supply chain disruptions
as these events impact the availability of LNG supplies. This risk was previously mitigated by a predictable supply of piped
gas from Russia and gas storage. Over the past two years (2023 and 2024), high levels of gas in storage were maintained
throughout the winter to ensure the security of supply. As of the date of this report, the quantities of gas in storage in
Europe are significantly lower than at the same time of the year in 2023 and 2024. Such a deficit of gas in storage is likely
to contribute to elevated prices and potential price spikes in 2025.
The expected attractive gas prices (approx. USD 11 per MMBtu in 2024) create a strong investment case for the Company
to prioritise the drilling, development and monetising of its rapidly expanding gas exploration portfolio in Upper Austria.
Overview of the crude oil market
Global demand for crude oil averaged 102.8 million bpd during the reporting year (+0.8% or 600 kbpd) and is expected to
reach 103.9 million bpd in 2025 (IEA estimate). Increased consumption in 2024 was mainly driven by the petrochemical
industry and emerging countries. Underwhelming crude oil demand is reflective of the global macroeconomic environment
and changing patterns.
With supply averaging 102.9 million bpd (+630 kbpd), the global crude oil market was well-balanced in 2024. However, this
outcome was achieved with significant voluntary production cuts by OPEC+ (which controls 50% of the global crude oil
supply) implemented in November 2023 (2.2 million bpd). Meanwhile, crude oil supply from non-OPEC+ countries grew by
1.5 million bpd in the reporting period with the U.S.A., Brazil, Guyana, Canada and Argentina contributing to most of the
additional production.
8.0
41.1
13.1
8.8
10.0
11.4
13.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
2018-2021
2022
2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
USD per MMBtu
Dutch TTF
LNG JKM (Platts)
U.S. natural gas
ADX ENERGY LTD
CHAIRMAN’S REPORT
- 10 -
Source: IEA
Figure 5: Global crude oil supply and demand (2023-2025e)
From a supply/demand perspective, the outlook of the crude oil market for 2025 is uncertain for the following reasons:
A modest increase in global crude consumption is forecasted in 2025 (+1.1 million bpd);
Production from Non-OPEC+ countries is expected to grow by 1.5 million bpd; and
Risk of gradual unwinding of OPEC+’s voluntary production cuts from April 2025 which could bring 460 kbpd of
additional supply on the market;
On this basis, there is a significant risk of supply surplus (approx. 1 million bpd excluding unwinding of OPEC+ supply cuts)
which is likely to put downward pressure on crude oil prices. Concurrently, geopolitical tensions and uncertainty, potential
supply chain disruptions (Houthis’ attacks on tankers in the Red Sea) and uncertainty are expected to create volatility. ADX
is therefore seeking to rollover its prudent price risk management strategy by putting in place hedging when deemed
appropriate.
End of Chairman’s Report
100.0
101.0
102.0
103.0
104.0
105.0
2023
2024
2025e
million barrels per day
Demand
Supply
ADX ENERGY LTD
OPERATIONS REPORT
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OPERATIONS REPORT
Activities Overview
Asset Activities Summary
Production and Development - Vienna Basin Fields and Anshof Field - Onshore Austria
ADX is an operator and holds a 100% interest in the Vienna Basin production licences.
ADX is the operator of the Anshof Field, holding a 50% economic interest in the Anshof-3 production well as well as a 60%
economic interest in the Anshof-2A production well.
The production rate, net to ADX, from the Vienna Basin Fields and the Anshof Field (collectively, Austrian Production)
during the year averaged approximately 211 BOEPD compared to 287 BOEPD for the year ended December 2023. Oil and
gas production continued during the year from the 100% ADX owned Vienna Basin Fields producing an average of 174
BOEPD.
The decrease in average production was due to the shut-in of the Anshof-3 well until 3 April 2024 for the installation and
commissioning of the Anshof Permanent Production Facility (“PPF”) as well as a number of Vienna Basin Field wells being
offline due to corrosion and sand blocking of down hole pumps. The interruption to Anshof Field production is shown in
the Austrian ADX share net production Figure 1. The Anshof-2A well contributed to Anshof Field production from 2
December 2024 following completion and tie-in.
Figure 1: Austrian average daily oil equivalent production rate for oil, gas and total BOEPD
ADX ENERGY LTD
OPERATIONS REPORT
_________________________________________________________________________
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Sales revenues from Austrian Production during the year totalled A$ 8.645 million net to ADX, a 29% decrease compared
to the year ending 31 December 2023. The decrease in revenue is the result of a 20% decrease in production from the
Vienna Basin Fields and a 44% decrease at Anshof. The average received crude oil price reduced slightly from A$115.19/bbl
in 2023 to A$113.07/bbl in 2024. Gas prices averaged A$130.47/BOE in 2023 and reduced to A$97.81/BOE in 2024. Figure
2 shows the variation in monthly sales revenue from ADX’ Austrian fields.
Figure 2: Austrian Production monthly oil and gas sales revenue
During the year ADX continued to deploy a rolling hedging strategy seeking to provide stable revenue generation during
volatile market conditions. A number of hedging transactions were deployed during periods of favourable market
conditions.
On 26 January 2024, ADX executed hedging transactions with Britannic Trading Limited with a fixed price swap contract
for 8,400 barrels of oil at a fixed Brent crude oil price of USD 80.00 per barrel for February 2024 to May 2024 inclusive.
On 3 April 2024, ADX executed further hedging transactions with Britannic Trading Limited with a fixed price swap
contract for 15,000 barrels of oil at a fixed Brent crude oil price of USD 85.31 per barrel for June 2024 to October 2024
inclusive, and
On 5 July 2024, ADX executed further hedging transactions with Britannic Trading Limited with a fixed price swap
contract for 6,000 barrels of oil at a fixed Brent crude oil price of USD 83.15 per barrel for November 2024 and
December 2024 inclusive.
The balance of the crude oil production from the Anshof and Vienna Basin Fields was unhedged during the period allowing
ADX to maintain exposure to upside in Brent crude oil pricing. Gas production from the Vienna Basin Fields was also not
hedged.
ADX ENERGY LTD
OPERATIONS REPORT
_________________________________________________________________________
- 13 -
Vienna Basin Fields Production
Gaiselberg and Zistersdorf (collectively the Vienna Basin Fields) continued stable and low-emissions oil and gas production
through 2024. 63,784 BOE were produced and sold into the European market.
The following table summarises ADX’ unaudited estimates of Developed Reserves as at 31 December 2024, based on
reserves reported 31 December 2023, less production from the Vienna Basin Fields during the subsequent twelve-month
period. ADX confirms that it is not aware of any new information or data that may materially affect the Vienna Basin
Reserves.
ADX Vienna Basin Unaudited Developed Reserves as at 31 December 2024
1P Reserves
2P Reserves
Total Developed (BOE) @ 31 December 2023
979,091
1,639,091
Production 2024 (BOE)
63,784
63,784
Total Developed (BOE) @ 31 December 2024
915,307
1,575,307
Notes
1. ADX holds a 100% working interest in the fields
2. The notional reference point for reserves is the permit boundary or export line inlet.
3. Deterministic evaluation methods have been used.
4. Associate gas resources includes inerts sold with the gas.
5. There is no fuel & flare consumption for the Fields.
6. BOE means barrels of oil equivalent including solution gas
7. Conversion factors are 1.124m3/tonne oil, 165.4 sm3 gas per boe and a gas Higher Heating Value of 40.7 MJ/sm3
Anshof Oil Field Appraisal and Development
The Anshof-3 Eocene oil discovery well located in the ADX-AT-II licence in Upper Austria remained shut-in during the first
quarter of the year having reached its regulatory limit of 5,000 tonnes (36,000 Barrels) for long term test production on 19
September 2023 under an early production system. A 3,000 BPD PPF was successfully installed and hooked up at the
Anshof-3 site during the first quarter 2024 (Figure 3). The PPF commissioning commenced at end of the first quarter 2024
with first Anshof-3 oil production into the PPF on 3 April 2024 at a production rate 134 BOPD.
Figure 3: Anshof Permanent Production Facility at the Anshof-3 location
ADX ENERGY LTD
OPERATIONS REPORT
_________________________________________________________________________
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The Anshof-2 well drilled in the fourth quarter 2023 had intersected significantly better net Eocene reservoir than seen in
the discovery well (Anshof-3) but below the field oil-water-contact (OWC). In September 2024, the suspended Anshof-2
well was side-tracked from below its 9 5/8” casing shoe and successfully drilled into thick and high porosity Eocene
reservoirs up dip from Anshof-2 (Anshof-2A). The net oil reservoir intersection at Anshof-2A is approximately 3 times that
of Anshof-3 with approximately 20% higher porosity and permeability.
Anshof-2A well completion operations were conducted with a workover rig from 30 September 2024 to 10 October 2024.
The operations included the running of tubing in the well, perforating, stimulating the Eocene reservoir and installation of
a rod pump in the well.
The well was tied-in to the Anshof PPF as a producer on 2 December 2024 following the installation of pipework and the
connection of the well to the PPF electrical system and remote-control systems.
Anshof-2A well came on at a production rate of 202 barrels of liquids per day with a water-cut in excess of 70%. The high
productivity rate is in line with expectation given the greater net oil thickness and better reservoir quality in Anshof-2A
compared to Anshof-3. The high water-cut is attributed to the excellent reservoir quality providing vertical as well as
horizontal flow coupled with the proximity to the oil-water-contact (OWC).
Anshof Field Area and Anshof-2 Well Participation and Operatorship
ADX and MND executed an Energy Investment Agreement on 15 September 2023 whereby MND earned 30% interest in
the Anshof Field Area from ADX (refer to the ASX release dated 7 August 2023). ADX’ economic interest in the Anshof Field
Area reduced from 80% to 50% as a result of this transaction.
XST elected not to participate in the Anshof-2A well. ADX and MND agreed to fund XST’s share of well costs on a 50:50
basis and in turn obtain the right to 60% and 40% respectively of production from the well. XST retains its 20% economic
interest in the remainder of the Anshof Discovery Area (i.e., Anshof Discovery Area less the Anshof-2A well) with both ADX
and MND’s economic interests remaining at 50% and 30% respectively.
Permanent Production Facilities
The installation of permanent production facilities (PFF) to replace the early production system used for the test of Anshof-
3 was successfully completed with the commissioning of Anshof-3 oil through the facility on 3 April 2024 with both Anshof-
3 and Anshof-2A producing into the PFF at end of the reporting period (Figure 4).
The PFF has the capacity to process oil from multiple wells with production capacity of approximately 3,000 barrels per
day. 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 trucked and disposed of at ADX’s Zistersdorf facility.
Figure 4: ANS-3 (left side, photo) and ANS-2A (right side, photo) wells at the Anshof PPF location
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OPERATIONS REPORT
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Anshof-2A Appraisal Well
The Anshof-2A up dip side-track appraisal well was successfully drilled in September to a total measured depth of 2,195
metres (TMD). Anshof-2A was drilled without any lost time safety incidents and within budget.
The Anshof-2A side-track well successfully encountered thick and high porosity Eocene reservoirs up dip from Anshof-2.
The 6.5 m net vertical oil column within a 10 m net sand (Figure 5) compares very favourably with the Anshof-3 discovery
well which had a 2.5 m net oil column. The net oil reservoir intersection at Anshof-2A is approximately 3 times that of
Anshof-3 with approximately 20% higher porosity and permeability.
The Eocene reservoirs encountered at Anshof-2A are similar in thickness and quality to the reservoirs encountered in the
down dip Anshof-2 well, confirming that thicker and more productive reservoirs are prevalent in the Eastern part of the
field compared to the Anshof-3 discovery well to the west. The Anshof-2A well top Eocene intersection is slightly down dip
from the Anshof-3 discovery well which is now interpreted to be near the crest of the Anshof structure (Figure 6).
Figure 5: A comparison of the Eocene sand thickness (shown in yellow) encountered in the Anshof-3 well (LHS), the Anshof-2A well
(Middle) and the Anshof-2 well (RHS)
Based on electric line logging data and pressure data recovered, the well has encountered Eocene sandstone reservoirs
between 1,586.5 m Total Vertical Depth Sub Sea (“TVD SS”) and 1,599 m TVD SS. An oil water contact is interpreted at a
depth of 1,593 m TVD SS. Pressure data recovered from Anshof-2A and producing data from both Anshof-3 and Anshof-
2A confirms a continuous oil pool intersected by the two wells (Figure 6).
ADX ENERGY LTD
OPERATIONS REPORT
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Figure 6: Anshof Oil Field outline, with an interpreted oil-water-contact at 1593 m TVDSS, appraised to date and areas of greater
Eocene reservoir thickness with the bottom hole location of the Anshof-3 discovery well, the Anshof-2A side-track well and the
Anshof-2 well
Anshof Production
Anshof-3 produced 25,102 bbls of oil with an uptime of 92.5% for 2024 from production recommencement date 3 April
2024. Anshof-2A produced 1,384 bbls of oil with an uptime of 91.4% for 2024 since production tie-in on 2 December 2024.
The optimum production rates for each of the wells is set to support reservoir management objectives, ensuring that the
bottom hole flowing pressure for both Anshof-3 and Anshof-2A wells remains above the oil’s bubble point pressure i.e.,
the pressure threshold below which gas begins to come out of solution from the oil.
At the end of 2024, Anshof-3’s optimum rate was 99 barrels of liquids per day with a water-cut of 9% giving a gross oil
output of 91 BOPD. For Anshof-2A, the optimum rate was 142 barrels of liquids per day, with a stable water-cut of 67%,
yielding a gross oil output of 46 BOPD.
Upper Austria Exploration Licences, Molasse Basin – Onshore Austria
Welchau Investment Area
ADX is operator and holds a 75% interest in the Welchau Investment Area within the ADX-AT-II licence in Upper Austria.
Welchau Energy Investment Agreement
ADX has an Energy Investment Agreement (EIA) with MCF Energy Ltd. via its subsidiary MCF Energy GmbH (MCF) to fund 50%
of Welchau-1 well costs up to a well cost cap of EUR 5.1 million to earn a 25% economic interest in the Welchau Investment
Area which is part of ADX’ ADX-AT-II licence in Upper Austria. The Welchau Investment Area contains the Welchau discovery
well and other emerging oil and gas prospects. MCF has met its earn-in funding obligations in accordance with the EIA to
earn a 25% economic interest. ADX holds a 75% economic interest in the Welchau Investment Area. MCF is obliged to pay
25% of ongoing well costs as well as exploration and appraisal expenditures. ADX holds a 100% economic interest in the
remainder of the ADX-AT-II licence other than the Anshof Discovery Area.
ADX ENERGY LTD
OPERATIONS REPORT
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Welchau Discovery Well
The Welchau-1 exploration well was spudded on 24 February 2024 using the RED Drilling & Services GmbH (RED) E200 drill
rig in the ADX-AT-II exploration licence (Figure 7). The well reached a total depth (TD) of 1,733 metres on 17th of March
2024. The well was suspended for well testing after running and cementing 7-inch casing down to TD with the rig released
on 28 March 2024. Welchau-1 was drilled without any lost time safety incidents and within budget.
The Environmental Clearance, received from the Department of Nature Protection of the State Government was the last
regulatory requirement to commence continuous (24 hour) flow testing operations of the Welchau-1 discovery well for a
period commencing from 30 October 2024 until 31 March 2025.
Following the receipt of the Environmental Clearance, a cost-effective workover rig and associated well test equipment
were mobilised on the 4-5th of November. The workover rig was the same rig used for the completion operations on
Anshof-2A. Well test operations commenced in early November 2024.
The ongoing testing of the Steinalm Formation and Reifling Formation was undertaken. At end of 2024 the well was shut
in following an initial flow test of the Reifling Formation due to limited inflow. The well has been monitored with a view to
allowing a sufficient volume of reservoir fluids to enter the tubing string that can be sampled before a decision is taken
whether to stimulate the well and continue testing operations.
Four registered Austrian environmental non-governmental organisations (NGOs) have objected to the Environmental
Clearance. Subsequent to year-end ADX has suspended Welchau-1 testing operations until the State Administrative Court
of Upper Austria clarifies the approval situation (see section below for more detail).
The significant amount of well data gathered from drilling and evaluating the well has been utilised for structural
interpretation, reservoir characterisation, resource estimation, well test planning and 3D modelling work.
Figure 7: Location of the Welchau-1 Discovery in the Northern Calcareous Alps within the ADX-AT-II licence area.
Welchau-1 Drilling Operations
during March 2024
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OPERATIONS REPORT
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Welchau-1 Structural Definition
The Welchau-1 well is mapped as being at or near the crest of an East-West trending, asymmetric anticline. This structural
interpretation is in line with the pre-drill structural model prediction. The slight change in the strike of the fold axis makes
the structure less cylindrical than predicted (in the Eastern part of Welchau anticline). The reservoir intersection at
Welchau-1 is interpreted to be significantly greater across three reservoirs than in the Molln-1 well. Given that oil was
recovered at Welchau-1 up dip of Molln-1 which tested gas and condensate, it is now interpreted that Molln-1 is in a
separate accumulation to Welchau-1 (Figure 8). More details on the thrusting and faulting resulting in a potential boundary
between Molln-1 and Welchau-1 wells is shown in the simplified structure map below.
Figure 8: Welchau-1 Top Steinalm Formation simplified post drill map. The 1989 Molln-1 gas discovery is interpreted as a separate
accumulation that is not connected to Welchau-1
Welchau-1 Data Analysis
The three primary carbonate reservoirs in the Welchau-1 well, promising for testing and ongoing appraisal, are the Reifling
(128 metres), Steinalm (118 metres) and the Guttenstein (111 metres). The Steinalm reservoir flowed condensate rich gas
at a rate of 4 MMSCFPD in the nearby discovery well (Molln-1) located just some 3 km away and tested in 1989.
The analysis of Welchau-1 well results including hydrocarbon shows, formation cuttings while drilling, electric line logging,
formation sampling and coring were used to update the resource range for Welchau and finalise the well testing design.
Third-party petrophysical consultants have evaluated the three key reservoirs and integrated the routine and special core
analysis measured data from the 7-metre Steinalm core into their evaluation. They have interpreted all three reservoirs to
be hydrocarbon bearing. It is noted however, that estimation of hydrocarbon saturation in tight fractured carbonates can
be difficult to assess in the presence of micro fractures due to uncertainty in relation to formation water properties (i.e.
electrical conductivity – salinity).
A 43° API light sweet oil was recovered from the over-pressured Steinalm Formation in a Modular Dynamic Tester (MDT)
down hole sample tool. Liquid hydrocarbon and gas inflow to the wellbore was observed at surface following the downhole
sampling operations. Mud gas readings for C1 (Methane) of up to 20% were recorded from the well bore with heavier
components up to C5 (Pentane) recorded. Following the observation of gas seen at surface, liquid hydrocarbons were also
observed in the mud at surface exhibiting florescence. The inflow of hydrocarbons to the well bore is further confirmation
of the existence of mobile hydrocarbons. The vertical extent of this light oil in the Steinalm or in the shallower Reifling and
deeper Guttenstein remains uncertain. There is no clear evidence of a hydrocarbon water contact in any of the reservoir
formations based on the open hole wireline log data.
ADX ENERGY LTD
OPERATIONS REPORT
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Figure 9: Welchau Carbonates Conceptual Model of an Open Permeable Fracture Network and other transmissibility events seen in
the well such as reactivated beddings
Wellbore image analysis specialists have developed a conceptual 3D model of the open permeable fracture network
(“Network”) in the vicinity of the Welchau-1 well (Figure 9). The Network consists primarily of fractures with some
“reactivated beddings” associated with folding of the rock. These “reactivated beddings” are also expected to contribute
to well flow and recovery.
The 3D model is based on detailed fracture and fault analysis using the Welchau-1 image log data, the open hole log data
together with the dynamic drilling data (i.e., mud losses to the formation and gas shows from the formation). The analysis
includes the identification of the many fracture types as well as their frequency, orientation, etc. The multiple open
fractures and resulting fracture networks that have been identified are critical to hydrocarbon flow and hydrocarbon
recovery. This 3D conceptual modelling work has been utilised for resource estimation, well test strategy, well test planning
and future appraisal drilling.
Welchau-1 Well Test Objective
A testing program was developed to primarily determine:
reservoir fluid type present in key reservoirs;
the flow capacity in key reservoirs; and
the reserves potential of the reservoirs.
The test focussed on the two major reservoirs, starting with the deeper Steinalm formation followed by the shallower
Reifling formation.
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OPERATIONS REPORT
_________________________________________________________________________
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Welchau-1 Well Test Operations – Steinalm formation
In preparation of the Welchau-1 Steinalm flow test, a well test completion string was run into the cased well (tubing, packer
and perforating system) and Flow Testing Facilities were rigged up, which included a test separator, the necessary
pipework, production tanks, heat exchanger and a gas flare (Figure 10).
Figure 10: Well completion work and Flow Testing Facilities set up at the Welchau-1 well location
Two intervals were perforated underbalanced using high shot density casing guns in the Steinalm formation. The test
intervals were at 1,452.5 metres to 1,463.5 metres Measured Depth (MD) “Upper” and 1,474.5 metres to 1,480.0 metres
MD “Lower”.
The perforated intervals were over fractured intervals in the Steinalm formation where hydrocarbon shows were observed
during drilling and above where oil was recovered from a down hole modular formation dynamic tester (MDT).
Hydrocarbon shows were observed whilst drilling as well as the interval where a formation core was recovered with
fluorescence (Figure 11).
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OPERATIONS REPORT
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Figure 11: Flow test intervals relative to MDT oil sample recovery and formation core recovery in Steinalm formation
During the well clean up, flow gas was observed at surface followed by an unassisted (free flowing) sustained, stable rate
of liquids comprised of drilling mud contaminated formation water and some potential oil traces. Well productivity
observed from the unstimulated perforated interval was between 230 to 250 barrels per day of fluids. The clean-up phase
was extended to five flow periods with a total volume of 72 m³ of reservoir fluid recovered.
A production logging tool (PLT) was run in the well to determine the source of the produced mud and formation water,
pressures and fluid gradients. The PLT results indicate that most, if not all of the fluid produced during the first Steinalm
test came from the bottom of the Lower perforation interval and with little or no contribution from the Upper perforation
interval approximately 27 metres above. Fluid entry to the well bore appears to be at a single point at approximately 1,478
m MD which flowed preferentially to the Upper perforations. The dominant flow is interpreted to be from a fracture system
accessing a water column or water filled fracture system lower in the structure. Based on the PLT results, the first Steinalm
test is not considered to be diagnostic of the presence or absence of hydrocarbons from the upper part of the Steinalm
formation. ADX may re-test the Upper, perforated interval at a future time after isolating the Lower perforated interval.
Figure 12 presents the completion diagram for the Steinalm test, along with a schematic illustrating the dominant
contribution of flow was from the bottom of the Lower interval based on an interpretation of the PLT results. However,
the accuracy of the flow measurements is not definitive and it is possible that all the flow originated exclusively from the
Lower perforated interval.
Welchau-1 Testing, Data Recovery and
Permeability Network Analysis in
Steinalm Formation
50m
1450
1570
1560
1550
1540
1530
1520
1510
1500
1490
1480
1470
1460
1450
High fractur density
High-Perm Network
Low fractur density
High-Perm Network
Well Test Perforations
4.5” TCP / 12SPF
(1) 1452.5m -1463.5m MD
(2) 1474.5m -1480m MD
____
_______
1474.5
1480
1452.5
1463.5
Formation Core
Recovery
1511-1519.4m MD
MDT ‘oil’ Sample:
1479.2m MD
____
1511
1519.4
Drill Mud Losses while
Drilling
(Steinalm Formation)
• Started close to 1486m
• Final close to 1556m
Gas Shows and Hydrocarbon
Influxes
(Steinalm Formation)
• Directly correlated to permeable
events intersected in well bore
(e.g. fractures)
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OPERATIONS REPORT
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Figure 12: Steinalm formation – Test 1, completion configuration and PLT interpreted flow paths
The lack of producible hydrocarbons encountered in the well at this interval is disappointing and contrasts with
hydrocarbon shows recorded while drilling the well and oil samples recovered from the MDT sampler. More analysis is
required to understand what appears to be a productive, extensive, well-connected and permeable fracture system in this
part of the Steinalm formation which drew formation water into the well predominantly from the lower perforated
interval.
Welchau-1 Well Test Operations – Reifling formation
In preparation for the Reifling test, the Steinalm test completion string was retrieved and the Steinalm perforations were
temporarily isolated with a packer. A new test completion string was run into the cased well to undertake the Reifling flow
test. The test being carried out at the upper section of the 128 m thick Reifling formation across three perforated intervals
at the top of the interpreted hydrocarbon column.
The three perforated intervals in the upper section of the Reifling formation are (1) a 16 m interval from 1,324 m to 1,340
m MD, (2) a 5 m interval from 1,346 m to 1,351 m MD and (3) a 24 m interval from 1,358 m to 1382 m MD (Figure 13).
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Figure 13: Reifling formation – Test 2, showing completion configuration and perforation intervals as well as the Minimum Flow
Volume required for formation fluids to enter tubing string
The initial flow test did not result in sufficient flow into the well bore for reservoir fluids to enter the tubing string (Minimum
Flow Volume) and allow the Reifling reservoir fluid composition to be determined or sampled. The sampled inflow
recovered primarily workover fluids (completion brine) and traces of black solid particles. Subsequent laboratory analysis
of the black solid particles indicates that they are mainly lead compounds that come from the perforation guns used. The
well was shut in on 3 December 2024 and the work over rig demobilised to undertake planned work at ADX Vienna Basin
Fields until further sample analysis and well pressure build up data become available from Welchau-1.
Wellhead pressure recording equipment with suitable accuracy was installed to monitor the pressure build-up resulting
from well inflow. The wellhead pressure is continuing to increase at a slow rate. The plan is to conduct further sampling
once sufficient inflow is observed through a notable increase in wellhead pressure.
Welchau-1 Well Operations Interruption
ADX has continued to undertake testing operations lawfully and in accordance with Environmental Clearance provisions at
all times. Four registered Austrian environmental non-governmental organisations (NGOs) have objected to the
Environmental Clearance. After the reporting period, a court ruling has repealed a previous law allowing operations to be
undertaken during the review process for an objection to an Environmental Clearance. As a result of this ruling, ADX has
suspended the Welchau-1 testing operations (refer ASX release 14 January 2025). The basis for the above-mentioned
objection and the resulting court ruling are summarised as follows:
Four registered Austrian environmental NGOs objected to the Environmental Clearance, by submitting an appeal to
the Relevant issuing Environmental Authority as well as seeking a suspension of operations. The suspension of
operations was rejected by the Relevant Environmental Authority (“Rejection”). Testing operations at Welchau-1 were
conducted despite the appeal process on the basis of the existing regulations that such appeals do not have a
suspensive effect.
The Rejection was forwarded to the State Administrative Court of Upper Austria which in turn referred the Rejection
to Austrian Constitutional Court to examine the legal basis (Judicial Review) for the article which prevented the
suspension of operations for the period during which an objection is considered (Suspensive Effect Article). Following
the Judicial Review, the Austrian Constitutional Court determined to repeal the Suspensive Effect Article on the basis
that it was not constitutional.
ADX ENERGY LTD
OPERATIONS REPORT
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Based on advice received to date by ADX’ lawyers the testing of Welchau-1 has been suspended until the State
Administrative Court of Upper Austria clarifies the approval situation.
At present the well continues to be monitored to evaluate the rate of pressure build up with a view to determining the
nature of fluid flow into the well. Monitoring of pressure and analysing the nature of fluid inflow into the well is important
to ensure that the integrity of the well is maintained.
Welchau-1 Revised Resource Estimate
Based on the data analysis to date, ADX believes it is most likely that Welchau is a high API hydrocarbon liquid (or light oil)
and associated gas discovery rather than a liquids-rich gas discovery as was predicted prior to drilling.
Due to the uncertain nature of the Welchau reservoir performance, ADX does not believe it is appropriate to provide a
definitive or detailed resources range at this stage.
ADX intends to revise Welchau resource estimates following the completion of the testing program, further analysis of
drilling results from Welchau and the historic Molln well, as well as further ongoing mapping work.
Welchau-1 Well Operations Forward Plan
The forward operations plan for Welchau-1 is to conduct further fluid sampling of the Reifling formation once sufficient
inflow is observed based on an increase in wellhead pressure. Subsequently, the well will be swabbed using wireline to
reduce hydrostatic pressure and stimulate flow.
If hydrocarbons are recovered, further testing of the Reifling formation is planned (Test 2a, Figure 13). This will likely take
place after reservoir clean up to mitigate wellbore damage and enhance productivity in the carbonate reservoir.
The forward testing program after the Reifling formation test will be determined based on further analysis of results from
the Steinalm and Reifling tests. The timing of such operations will primarily be dependent on the decision of the State
Administrative Court of Upper Austria.
Upper Austria AGS Exploration Licences, Onshore Austria
ADX is operator and holds a 100% interest in the ADX-AT-I and ADX-AT-II exploration licences other than the Anshof
Discovery Area (above), the Welchau Investment Area (above) and the ADX-AT-I Investment Area (details below). Figure 14
shows the ADX AT I & II licenced areas for 2021-2024 and the revised licence areas for 2025-2028. The Anshof Discovery
Area and the Investments areas of MND and MCF are also shown.
ADX-AT-I licence interests: ADX holds a 100% interest in the ADX-AT-I exploration licence except ADX holds a 50%
interest in the MND Investment Area 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 Lichtenberg-1 well.
ADX-AT-II licence interests: ADX holds a 100% interest in the ADX-AT-II exploration licence, except as follows:
o
ADX holds a 75% interest in the Welchau Investment Area; and
o
ADX holds a 50% interest in Anshof Discovery Area other than the Anshof-2A well in which ADX holds a 60%
interest.
ADX ENERGY LTD
OPERATIONS REPORT
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Figure 14: ADX-AT-I & ADX-AT-II Licence Areas, also showing investment areas of MND (ADX AT I exploration and Anshof (ANS)
production and MCF exploration within the Welchau discovery area)
Variation to Licence Areas
In late 2024 ADX made a request to the Austrian Ministry of Finance (” BMF”) for a variation to ADX-AT-I and ADX-II licence
areas to extend ADX’ exposure to a shallow gas play and the Welchau Calcareous play. Following a public review process
the licence variation was agreed and accepted after the reporting period. Finalisation of amendment agreements are
expected during the second quarter of 2025.
The licence areas (1,022 km2) are for exploration, production and gas storage (“AGS”). The varied acreage under licence
will remain the same area size and contain the Molasse (Oligocene to Miocene), Eocene, Cretaceous and Calcareous
(Jurassic) formations in Upper Austria.
During the reporting period ADX exploration focus for portfolio development has been as follows:
1. Welchau Play Extension – High Impact Exploration: As described in the previous section, during the drilling of
Welchau -1 most of the predrill assumptions for the prospect were confirmed including proving the presence of
a large structure, hydrocarbon migration, the presence of top and fault seals and the possibility of potentially
productive reservoirs, two (“Steinalm” and “Reifling”) of which were production. While the reservoir flow testing
results to date have been below expectations the Welchau-1 well results have enhanced the exploration potential
of the play sufficiently for ADX to expand its Calcareous exploration position (Figure 15).
Based on the results of Welchau-1 the Rossberg prospect which lies slightly north is expected to have a
significantly improved chance of success as a future discovery. Figure 18 shows that the seal of the prospect is
now proven along a very large area. In addition to the Welchau-1 results and the nearby Molln-1 gas historic
discovery in the same Triassic carbonate-limestone reservoirs, new prospects have been created, and existing
prospects have further improved.
ADX ENERGY LTD
OPERATIONS REPORT
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It should also be noted that unlike sandstone reservoirs, limestone and carbonate reservoirs often change
significantly in terms of production quality within the same field. This is caused by connection of fractures and
further porosity and permeability improvements in the presence of dolomites, as proven in the Welchau area.
Similar limestone/ carbonate fields worldwide have a large variation in well productivity. Typically, about 30% of
the wells produce about 60% to 80% of the entire reserves. An example slightly south of and between Venice and
Milan (Italy) is a very large ENI discovered carbonate field: Turrini et al. (2014)
2. Shallow Gas Targets – Low Risk and rapid production tie in opportunities (ADX-AT-I & II licences): During the
reporting period, ADX has, and continues in 2025, to mature low risk and low-cost drilling prospects. The number
of such low risk prospects identified has increased from an initial three prospects to in excess of ten prospects.
The development of this shallow gas play is attributable to a large extent to the detailed 3D seismic AI (“Artificial
Intelligence”) mapping undertaken over the last two years. Figure 16 and Figure 17 show some of these new gas
prospects (“Hall” formation), which are located very close to pipelines enabling a rapid development time frame.
In addition to the high chance of hydrocarbon success for these prospects, the likely presence of high-quality
sandstone reservoirs are expected to result in high gas production rates, thereby improving cash flow generation
and commerciality.
In 2024 the detailed 3D seismic interpretation and 3D PSTM (pre stacked depth migration reprocessing) resulted
in a high-quality set of 3D amplitudes, AVO, RMS etc. data which directly indicates the presence of reservoirs and
gas trapping. A key result is that several Hall formation sandstone reservoir prospects have been identified that
are very likely to be gas filled. One such prospect in the ADX AT I area is the “HOCH” (Hochfeld) prospect (Figure
19). The HOCH prospect was previously reported in the ASX release dated 22 June 2023, initially describing two
very close by prospects SCHOE and HOCH with a best total case of 11.4 bcf. The two prospects are now seen as a
single prospect.
3. Anshof Near Field Exploration and Appraisal Prospects (ADX-AT-II): The Anshof Oil Field is now producing from
two wells, i.e., Anshof-3 and Anshof-2A. The drilling, geological, formation evaluation and production data from
the three wells (ANS-3, ANS-2 & ANS-2A) have defined the Anshof field structure and confirmed the sand
distribution model of excellent Eocene oil reservoir in the area. This subsurface understanding further improves
the chance of success for near field prospects which could be tied into the Anshof PPF (Figure 20).
4. High Impact Oil & Gas Prospects: The Lichtenberg-1 (“LICHT-1”) exploration well within the ADX-AT-I MND
Investment area was drilled from September to October 2024. The total well cost, despite the deeper TD than
planned did not exceed the pre-drill AFE, with the majority of the well cost paid by MND pursuant to an Energy
Investment Agreement. MND has satisfied its earn in obligation and now holds 50% of the ADX-AT-I MND
Investment area (Figure 14). The main Oligocene sandstone reservoir target– the Lower Puchkirchen Formation
(“LPF”) was absent in LICHT-1 apart from a thin section. The combination of the new 3D seismic Pre stacked Time
Migration processing (“PSTM”) with proven shallower thin LPF reservoir seen in LICHT-1 enabled a clear distinction
between real productive high quality (gas) Oligocene LPF reservoirs and the older age turbidites having only shales
and marlstones. The detailed drilling and logging data from LICHT-1 has improved the expected chance of success
for the presence of reservoir in the follow up prospect of Irrsdorf (“IRR”). With this improved understanding a
second, additional reservoir target is prognosed at IRR. The IRR prospect is analogous to the nearby Haidach gas
field which has produced 150 BCF. In addition to the IRR prospect additional LPF reservoir prospects have been
identified using the new 3D seismic Pre stacked Depth Migration processing (“PSDM”) and the data obtained from
the LICHT-1 well. As a result, the main risk of not finding LPF reservoirs in future prospects is significantly reduced.
Figure 21 shows the drilling of the LICHT-1 together with a N-S 3D seismic line showing the absence of LPF (gas)
sandstone which is replaced by non-reservoir sediments. Prior to the drilling of LICHT-1 it was difficult to
distinguish between the LPF real (gas) reservoirs and non-reservoir sediments on seismic. As a result of the
information obtained from LIGHT-1 it is now possible to identify gas reservoirs with greater confidence. ADX
expects to identify and mature a number of (Molasse South Slope) high impact gas prospects in 2025.
During the reporting period detailed work was undertaken on the large ZAM prospect (Figure 16) and has
confirmed the prospect is in part analogous to the largest OMV Jurassic gas reservoir field (“Hoeflein”) which has
produced 70 MMBOE to date.
ADX ENERGY LTD
OPERATIONS REPORT
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Figure 15: ADX-AT-I & ADX-AT-II Licence Area Variations providing multiple new growth targets. The total licence area of 1,022 km2
remains unchanged.
In summary, the above mentioned 2024 explorations activities, including 3D seismic, AI and PSTM reprocessing, as well as
exploration and appraisal data obtained from the drilling of Welchau-1, Lichtenberg-1 and Anshof-2A have enabled the
creation of an improved set of opportunities for exploration and appraisal drilling. Portfolio generation contains both very
large and mid-sized, high impact oil and gas prospects as well as a largely new set of low risk, low-cost shallow gas prospects
which provide rapid production and cash flow growth opportunities.
The ADX AT I & II exploration areas will be enhanced with both very large sized prospects and smaller sized prospects but
with very low risk following an application to the Austrian Ministry to vary the licence areas for both licences. Figure 15,
Figure 16 and Figure 17 show the varied licence areas which have been approved following the reporting period. ADX plans
to announce an updated portfolio of exploration and appraisal prospects during the second quarter of 2025 including new
and updated prospects.
ADX ENERGY LTD
OPERATIONS REPORT
_________________________________________________________________________
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Figure 16: The ADX-AT-I licence area has increased by approx. 93 km2 over multiple shallow gas prospects as well as emerging high
impact oil and gas prospects.
Figure 17: The revised ADX-AT-II licence covers the extension of the Welchau play and the Rossberg prospect. In addition to the
Welchau play extension the ADX-AT-II licence includes near Anshof field oil appraisal and exploration prospects as well as the new
low risk shallow gas prospects.
ADX ENERGY LTD
OPERATIONS REPORT
_________________________________________________________________________
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Figure 18: ADX-AT-II Molln-Welchau-Rossberg area provides condensate resources potential and multiple new growth areas.
Deeper reservoirs in Welchau-1 area, similar to the Molln-1 gas production (1989) and attractive new prospects such as the on trend
Rossberg prospect with likely trapping sealing sediments across the structure.
Figure 19: ADX-AT-I 3D seismic data based on new PSTM and RMS (root mean square amplitudes) directly identifies gas reservoirs.
The Hochfeld prospect area is also shown in Figure 16.
ADX ENERGY LTD
OPERATIONS REPORT
_________________________________________________________________________
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Figure 20: ADX-AT-II northern area showing the new Eocene sandstone oil production reservoir gross thickness model to the left and
the 3D seismic structural model to the right. All updated or new prospects apart from the very large “GRB” now have a high chance
of success and can be tied into the Anshof PPF. Field areas BH, PK, SIER are RAG production fields.
]
Figure 21: RED Drilling & Services GmbH (RED) E-202 drilling rig at the LICHT-1 well site in the image above. The image below is
initial pre-drill 3D seismic PSTM. The LICHT-1 well data (i.e., logging) together with 3D PSDM (and PSTM to follow in 2025) has
significantly reduced the risk between initially similar looking excellent LPF (“Lower Puchkirchen Formation) sandstone reservoirs
and tight older geological age turbidites (MTC stands for Mass Transport Complex) of older age non reservoir turbidties. In 2025
several new high impact prospects will be completed or created.
ADX ENERGY LTD
OPERATIONS REPORT
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ADX-AT-I Investment Area
ADX is operator and now holds a 50% interest in the ADX ATI – AREA 4. MND having completed its funding obligations now
holds the other 50%.
Figure 14 and Figure 16 show the MND farmin area within the entire ADX ATI area.
MND in 2025 has secured a 50% economic interest in the Exploration Investment Area by providing cash payments to ADX
and funding 100% of the agreed exploration work program of EUR 4.5 million. The Exploration Investment Area is part of
the ADX-AT-I licence area. The main investment was made for the LICHT-1 exploration well, described in further detail
above.
At completion (in January 2024) MND paid back costs of EUR 0.45 million (A $0.74 million) to ADX and has funded EUR 4.5
million (A $7.40 million) for the LICHT-1 exploration drilling to earn a 50% economic interest in MND Investment Area (an
exploration investment area within the ADX-AT-I licence (i.e., ADX-ATI Area 4) in Upper Austria. ADX retained a 100%
interest in the remainder of the ADX-AT-I licence including adjacent gas exploration prospects (EG, OHO and ZAM).
Iecea Mare Production Licence and Parta Exploration Licence – Onshore Western 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 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.
ADX has submitted during the year technical and financial documents in relation to Parta Exploration Licence to the relevant
Romanian authorities, with the possibility of extending the licence period without additional commitment. During the
reporting period, discussions on transferring the extension period to new, similar or nearby exploration areas are ongoing.
This approach would ensure that only a second extension of the Parta licence area or award of a new area would lead to an
additional obligatory work program. The governing authority is the National Agency for Mineral Resources (NAMR).
Note that the validity of the Iecea Mare production licence is 20 years and is not affected. Options within Iecea Mare
production licence to exploit the geothermal potential of the Romanian part of the Pannonian Basin are under investigation
with the authorities, given the subsurface review of no remaining hydrocarbon prospectivity, including the use of the ADX
IMIC-1 (“Iecea-Mica-1”) technical gas discovery well. Options of investment in hydrocarbon producing assets in nearby oil
fields are being investigated.
Italy - d 363C.R-.AX Licence - Offshore Sicily
ADX is operator and holds 100% interest in the d 363C.R-.AX Exploration Permit
Details of the main 2024 agenda and successes are detailed below. A key 2024 event was the relatively close-by ENI gas
discoveries Argo & Cassiopea, starting production in August 2024. Italy media celebrated this as one of the largest recent
European gas productions without methane and CO2 emissions. Figure 22 shows the ADX and ENI areas offshore south of
Sicily, Italy.
ADX ENERGY LTD
OPERATIONS REPORT
_________________________________________________________________________
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Figure 22: Location map showing the Permit, bathymetry and producing fields with analogous gas reservoirs. The ADX (Audax)
exploration area will be 346 km2. The map also shows ENI’s recently developed Argo & Cassiopea fields.
Background regarding d 363 C.R-.AX ’Nilde’ permit (“Permit”)
The Permit in the Sicily Channel, offshore Italy is located in a water depth of 90-100 metres just over 60 km from the shore
of the island of Sicily. A number of oil discoveries were made in the in the 1980’s by AGIP (now ENI) and Shell.
The permit is also prospective for gas with gas shows encountered in historic deeper oil wells at a time before gas was
commercially viable.
ADX Energy Ltd, via its 100% subsidiary Audax Energy S.r.l. (Audax), made an application to the Italian Ministry of
Environment and Energy Security (Ministry) for a 100% interest in the “d 363 C.R-.AX” permit (Permit) in the Sicily Channel,
Offshore Italy (refer to Figure 22).
The finalisation of the application has been delayed since 2018 due to a moratorium on the award of new exploration
licences in Italy. As a result of revised national energy supply priorities, the Ministry has recently completed the verification
of the technical, organisational and economic capacity of Audax, offering the Permit with a maximum area of up to 346 km2.
The approval of the technical, financial and organisational capacity of Audax has resulted in authorising Audax to hold and
operate any exploration and production licence in Italy.
ADX ENERGY LTD
OPERATIONS REPORT
_________________________________________________________________________
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Permit Offer and Acceptance
The Permit has been offered in 2024 and in January 2025 Audax accepted the licence in accordance with the current
regulatory framework focusing on gas exploration (refer to ASX release 22 January 2025). The formal Italian approval of the
Permit is expected within the next months.
The Permit is highly prospective for high quality gas with minimal impurities (sweet gas) making future discoveries likely to
be commercially attractive. The key attributes for the Permit can be summarised as follows:
1. Proven existence of sweet gas in the Permit confirmed by several historical wells (i.e. Nilde-2 a historic well targeting
deeper oil production);
2. Highly productive sandstone reservoirs with shallow drill depths (700 m to 1300 m) and moderate water depths
(100 m);
3. Availability of a large, high quality historical 2D seismic data set that can be reprocessed;
4. Attractive fiscal terms (10% royalty + 29% Effective Tax Rate), in conjunction with strong demand for Clean Gas1
that is subject to the high prevailing gas prices in Italy and Europe;
5. There are flexible permitting terms and low financial commitments;
6. There are two proximal and geologically similar producing field areas (one onshore and one offshore), contributing
to excellent local gas pipeline infrastructure and
7. Italy has a positive, pro-development political environment in effect which supports European Clean Gas with the
election of Ms Giorgia Meloni and the formation of a centre-right coalition.
1 Clean Gas is hydrocarbon gas that is produced and processed to high European Union environmental standards limiting
both CO2 and methane emissions).
A formal permit agreement is expected to be finalised during the second quarter of 2025. A formal agreement is expected
to follow a meeting with the main local authorities involved, including the Port Authority, Harbour Master's Office, Financial
Police and the Fire Department.
Prospectivity Overview
An assessment of the Permit’s gas potential was announced in 2022 (refer ASX announcement 30 August 2022) advising that
the Best Estimate prospective resource potential (recoverable) of five high graded gas prospects is 369 BCF (note 1), using
an arithmetic summation. Five already identified prospects (2022 Assessed Prospects) are considered relatively low risk since
these are mainly relatively simple, 4-way dip anticline closures featuring seismic amplitude responses (Direct Hydrocarbon
Indicators or “DHI”). These are already visible on historic 2D seismic data acquired by ENI and Shell in the eighties and
nineties.
1Prospective Resources are those estimated quantities of petroleum that may potentially be recovered by the application of
a future development project(s) related to undiscovered accumulations. These estimates have both an associated risk of
discovery and a risk of development. Further explorations appraisal and evaluation is required to determine the existence
of a significant quantity of potentially moveable hydrocarbons.
The original ENI seismic data that is available to ADX also shows additional stratigraphic leads, based on Direct hydrocarbon
Indicators (“DHIs”). Figure 23 shows the stratigraphic potential is in addition to the structural traps forming the high-graded
2022 assessed prospects. The stratigraphic traps have large upside resources potential due to the possibility of stacked gas
reservoirs as is the case at ENI’s Argo-Cassiopea offshore gas field. In such a case, the upside potential is at least 4 to 6 times
that of the structural 2022 assessed prospects where evaluated resources include only one gas reservoir. The historical 2D
seismic cross section below shows examples of leads that exhibit reservoir stacking.
Gas has already been confirmed in the Permit from shows encountered during the drilling of the historic Nilde-2 production
well and other exploration wells targeting deeper oil that all encountered sweet, high-quality gas in the shallower drilled
section during drilling in the 1980’s. The drilling depth for the currently identified and assessed prospects are in the range of
just 700 m to 1300 m. It is expected that reprocessed 2D seismic and 3D new seismic will likely identify further prospects as
well as stacked gas reservoirs as seen in ENI’s Argo-Cassiopea gas field.
ADX ENERGY LTD
OPERATIONS REPORT
_________________________________________________________________________
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The 2022 Assessed Prospects are based on Miocene-Pliocene aged reservoirs identified by wells and 2D seismic. Similar
reservoir productivity is expected like the onshore, shallow Lippone – Mazara producing gas field, which exhibits very high
porosities (approximately 33%).
The nearby ENI Argo Cassiopea gas field to the southeast of the Permit has similar (slightly younger) Miocene-Pliocene
discoveries that are now producing gas from two fields with approximately 360 BCF of reserves reported by ENI. This is a
result of several stacked gas reservoirs creating large reserves in a relatively small structural area.
Figure 23: High quality 2D seismic showing several different styles of gas reservoirs and trapping mechanisms (Leads) including
stacked pay.
It should be noted that due to the again increased Permit area, as now offered by the Ministry, additional previously mapped
gas prospects will be added to the prospect inventory.
Commercial Overview
The combination of shallow water, shallow drill depths, high porosity reservoirs, excellent pricing conditions and favourable
fiscal terms is likely to enhance the commerciality of a gas discovery.
Commerciality is further enhanced by the recent development of ENI’s Argo Cassiopeia Project and the related offshore and
onshore infrastructure which would be suitable for subsea tie backs. In addition to the Argo Cassiopea Project system, the
Permit is adjacent to the major Transmed pipeline with an entry point at Mazara Del Vello (near to the Lippone-Mazara Field)
that is also proximal to the Permit (Figure 24).
ADX ENERGY LTD
OPERATIONS REPORT
_________________________________________________________________________
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Figure 24: Location map showing Transmed and Greenstream pipeline systems proximal to the Permit.
ADX ENERGY LTD
OPERATIONS REPORT
_________________________________________________________________________
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Austrian Renewable Energy Project Opportunities
It is ADX’ long-term plan to enhance the value and lifespan of the Vienna Basin Fields through the transformation of the
assets into a multi-energy hub combining low emissions oil and gas production operations, renewable energy production
and hydrogen storage activities.
Vienna Basin Solar Project
During the reporting period, ADX completed feasibility studies relating to the potential development of a solar park at the
Vienna Basin Fields (Vienna Basin Solar Project). Different configurations were reviewed by the specialist consultant engaged
by ADX and the following options were identified as the most suitable:
Two photovoltaic (PV) plants with a combined capacity of 1.4 MWp to be used for self-consumption with suitable
battery systems (1.4 MWh for intraday energy storage); and
Two PV plants with a combined capacity of 4 MWp to be connected to the grid provided that grid access is granted.
South facing orientation of the panels provides the most attractive economics. The lead time for the execution of the Vienna
Basin Solar Project is estimated at 18-21 months. It is anticipated that the PV plants to be used for self-consumption would
reduce ADX’ electricity purchases from the grid by 1.6 GWh per annum representing a cost reduction of approx. EUR 130,000
p.a. based on average wholesale electricity prices in Austria recorded in 2024 (EUR 82 per MWh).
The proposed battery system could also allow intraday price arbitrage, further reducing electricity costs arising out of oil and
gas operations at the Vienna Basin Fields.
ADX is planning to mature the potential execution of the Vienna Basin Solar Project in conjunction with an asset management
plan for the Vienna Basin Fields.
Vienna Basin Hydrogen Project
The Vienna Basin Fields are located approx. 60 km from Vienna (where there is potential for significant hydrogen demand
for both power and heat generation) in the vicinity of a planned hydrogen pipeline network including the European
Hydrogen “Backbone”.
During the reporting period, ADX had discussions with a group which expressed interest in the underground storage of
hydrogen at the Vienna Basin Fields. Depleted gas reservoirs already evaluated based on their suitability for hydrogen
storage have a combined capacity in excess of 100 GWh. These discussions were put on hold after the reporting date,
pending clarity on the regulatory framework relating to the development of the hydrogen business in the EU.
ADX is planning to undertake various studies seeking to firm-up the feasibility of the underground storage of hydrogen at
the Vienna Basin Fields in order to improve the project definition and its marketability to potential partners or users of
storage.
Geothermal
The GMU prospect, located in the Eastern part of the ADX-AT-I exploration licence in Upper Austria (Molasse basin), was
highlighted, presented and discussed in detail in the ASX release on the 22 June 2023. It 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.
The GMU prospect has sufficient heat potential for the development of a geothermal plant with 18 MW of geothermal
energy output in addition to the gas (and oil) potential of the shallow reservoirs.
End of Operations Report
ADX ENERGY LTD
RESERVES REPORT
_________________________________________________________________________
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Gaiselberg and Zistersdorf Production Assets, Vienna Basin – Onshore Austria
ADX purchased the Vienna Basin Fields (Gaiselberg and Zistersdorf) in December 2019. Since then, the fields have been
producing oil and gas continuously and have been ADX’ primary source of cashflow.
ADX equity interest in the relevant production licenses is summarised as follows:
Since purchase of the fields, two Competent Person’s Reports (CPR) have been undertaken by independent consultants
engaged by ADX to audit the Developed Reserves at the Vienna Basin Fields. The first CPR had an effective date of 31
December 2019 and the most recent CPR prepared by RISC has an effective date of 1 July 2021. The results of RISC’s CPR
were announced on the ASX on 4 November 2021.
ADX reserves attributable to Vienna Basin Fields effective 31 December 2023 were previously reported (Annual Report
2023). These were based on RISC CPR audited Developed Reserves as at 1 July, 2021 less production during the subsequent
30-month period.
The following table summarises ADX’ unaudited estimates of Developed Reserves as at 31 December 2024, based on
reserves reported 31 December 2023, less production from the Vienna Basin Fields during the subsequent 12-month period.
ADX Vienna Basin Unaudited Developed Reserves as at 31 December 2024
1P Reserves
2P Reserves
Total Developed (BOE) @ 31 December 2023
979,091
1,639,091
Production 2024 (BOE)
63,784
63,784
Total Developed (BOE) @ 31 December 2024
915,307
1,575,307
Notes
1. ADX holds a 100% working interest in the fields
2. The notional reference point for reserves is the permit boundary or export line inlet.
3. Deterministic evaluation methods have been used.
4. Associate gas resources includes inerts sold with the gas.
5. There is no fuel & flare consumption for the Fields.
6. BOE means barrels of oil equivalent including solution gas
7. Conversion factors are 1.124m3/tonne oil, 165.4 sm3 gas per boe and a gas Higher Heating Value of 40.7 MJ/sm3
Field
Working Interest
License Expiry 1
Block or License
Zistersdorf Field
100%
N/A
Zistersdorf
Gaiselberg Field
100%
N/A
Gaiselberg
ADX Vienna Basin Oil and Gas Field Interests
ADX ENERGY LTD
RESERVES REPORT
_________________________________________________________________________
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Anshof Discovery Area, ADX AT-II AGS license, Upper Austria – Onshore Austria
During January 2022, ADX discovered oil in Eocene reservoirs and shallow gas in Miocene reservoirs at the Anshof-3 well.
ADX completed and tested the Eocene reservoir in May, 2022. A long-term, production test commenced from the Anshof-3
well on 16 October, 2022. The Anshof-3 well has produced continuously for the entire test period until it was shut in 19
September, 2023 at the end of the test period. Production recommenced from Anshof-3 in April 2024 following the
installation of a permanent production facility. The Anshof-2 appraisal well was spudded on 13 November 2023. The well
did not encounter an oil column and was suspended for a future side track. The Anshof-2A side-track appraisal well was
spudded on the 7 September 2024 and subsequently tied in to the Anshof permanent production facility as a producer on 2
December 2024.
ADX equity interest in the relevant license is summarised as follows:
ADX Anshof Oil Field Interests
Area
Effective Dates
Economic Interest
Licence Expiry3
Block or Licence
Anshof Field
31 December 2022 –
15 September 2023
80%1
N/A
ADX AT-II
Anshof Field (except
Anshof-2 & 2A Well)
16 September 2023 –
current
50%1
N/A
ADX AT-II
Anshof-2 Well
13 November 2023 –
current
60%2
N/A
ADX AT-II
Anshof-2A Well
7 December 2024 –
current
60%3
N/A
ADX AT-II
Notes
1. ADX farmed down its 80% economic interest to MND in return for certain upfront and contingent payments on 15
September 2023
2. XST elected not to participate in the Anshof-2 well resulting in ADX’ additional 10% economic interest in this well
3. XST elected not to participate in the Anshof-2A well resulting in ADX’ additional 10% economic interest in this well
4. The licence term is for life of field
Independent consultants RISC were engaged to provide an independent reserve and resource assessment for the Anshof
field. The RISC CPR relating to the Anshof field has an effective date of 1 October 2022. Refer to ASX release dated 31 October
2022. A long-term production test commenced from the Anshof-3 well on 16 October 2022.
The Anshof-2 well was spudded on the 13th of September 2023. The well intersected a much thicker than expected high-
quality reservoir section at or below the oil water contact. The drilling results indicated a flatter field structure filled with a
thicker section of Eocene reservoirs. As a result, remapping of the field was required together with further appraisal to assess
the fields reserves potential.
The Anshof-2A up-dip side-track appraisal well was successfully drilled in September 2024. The well encountered thick and
high porosity Eocene reservoirs up dip from the Anshof-2 well. A 6.5 m net vertical oil column within a 10 m net sand
compared favourably with the Anshof-3 discovery well which had a 2.5 m net oil column. The Anshof-2A well commenced
production on the 2nd of December 2024. Production at the Anshof Field since the 2nd of December 2024 has been from the
Anshof-3 together with Anshof-2A well.
ADX plans to integrate the drilling results from Anshof-2A well together with the production performance from the Anshof-
3 discovery well and Anshof-2A to provide an update in relation to the Anshof Field Reserves as soon as practically possible.
ADX ENERGY LTD
RESERVES REPORT
_________________________________________________________________________
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The following table summarises the unaudited estimates of gross and net Reserves as at 31 December 2024, based on
unaudited reserves reported as at 31 December 2023, less production from the Anshof Field during the subsequent twelve-
month period.
ADX Anshof Unaudited Reserves as at 31 December 2024
1P Reserves
2P Reserves
Anshof Gross Reserves (BOE) @ 31 December 2023
463,833
5,088,833
Gross Production 2024 (BOE)
26,484
26,484
Anshof Gross Reserves (BOE) @ 31 December 2024
437,349
5,062,349
Anshof Net Reserves (BOE) @ 31 December 2023
231,916
2,544,416
Net Production 2024 (BOE)
13,381
13,381
Anshof Net Reserves (BOE) @ 31 December 2024
218,535
2,531,035
Notes
1. The notional reference point for reserves is the permit boundary or export line inlet.
2. ADX has an 50% economic interest in the Anshof discovery area and 50% entitlement to its gross reserves and
resources; except the Anshof-2 well where it has a 60% economic interest and entitlement subject to the terms of
XST’s non-participation in the well.
3. Probabilistic methods have been used to determine oil in place and recoverable oil. Deterministic methods were
used to develop production profiles and well numbers.
4. Associated gas resources include inerts sold with the gas. There is no fuel and flare.
5. Conversion factors are 7.3 bbl per tonne of oil and 5,800 MMscf per MMboe of gas.
6. ADX confirms that the results of the Anshof-2 well and the Anshof-2A well together with ongoing production
performance from Anshof-3 and Anshof-2A will impact Anshof Field Reserves estimates. As described in ADX
announcement of 11 December 2023, the presence of a much thicker than expected high-quality reservoir section
and the fact that Anshof oil field structure is flatter and larger due to the Eocene sands being encountered 40 to 50
metres higher than prognosis is expected to compensate for the shallower than expected OWC depth at Anshof-2.
As described in ADX announcement of 17 September 2024, the Anshof-2A up-dip side-track appraisal well
encountered thick and high porosity Eocene reservoirs up dip from Anshof-2. The 6.5 m net vertical oil column
within a 10 m net sand compared favourably with the Anshof-3 discovery well which had a 2.5 m net oil column.
The Anshof-2A well commenced production on the 2 December 2024. Production at the Anshof Field since the 2
December 2024 has been from the Anshof-3 discovery well together with Anshof-2A well.
ADX ENERGY LTD
RESERVES REPORT
_________________________________________________________________________
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ADX’ Total Austrian Reserves
ADX’ total net Austrian Reserves are summarised below. This includes the Vienna Basin Fields Reserves and Anshof Field
Reserves (described above) as at 31 December 2024.
The reserves variance described below is a comparison of 2024 year-end reserves versus 2023 year-end reserves.
A negative reserves variance of - 2% is estimated for the 2P Reserves category and - 6% is estimated for the 1P Reserves
category. The variance in each case is the result of production from the Vienna Basin Fields and the Anshof Field during 2024.
ADX Austrian Fields Unaudited Net Reserves as at 31 December 2024
Anshof Field and Vienna Basin Field Reserves (Barrels of Oil Equivalent)
1P Reserves
2P Reserves
Vienna Basin Fields (BOE) *
915,307
1,575,307
Anshof Field (BOE)
218,535
2,531,035
Total Reserves (BOE) @ 31 December 2024
1,133,842
4,106,342
Notes
See Notes in Asset Tables above
Reporting Standards
Reserves and resources are reported in accordance with the definitions of reserves, contingent resources and prospective
resources and guidelines set out in the Petroleum Resources Management System (PRMS) prepared by the Oil and Gas
Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the American
Association of Petroleum Geologists (AAPG), World Petroleum Council (WPC), Society of Petroleum Evaluation Engineers
(SPEE), Society of Exploration Geophysicists (SEG), Society of Petrophysicists and Well Log Analysts (SPWLA) and European
Association of Geoscientists and Engineers (EAGE), revised June 2018.
PRMS Reserves Classifications Used
1P Denotes low estimate of Reserves (i.e., Proved Reserves). Equal to P1.
2P Denotes the best estimate of Reserves. The sum of Proved plus Probable Reserves.
3P Denotes high estimate of Reserves. The sum of Proved plus Probable plus Possible Reserves.
1. Developed Reserves are quantities expected to be recovered from existing wells and facilities.
a. Developed Producing Reserves are expected to be recovered from completion intervals that are open and
producing at the time of the estimate.
b. Developed Non-Producing Reserves include shut-in and behind-pipe reserves with minor costs to access.
2. Undeveloped Reserves are quantities expected to be recovered through future significant investments.
A. Proved Reserves are those quantities of Petroleum that, by analysis of geoscience and engineering data, can be
estimated with reasonable certainty to be commercially recoverable from known reservoirs and under defined technical
and commercial conditions. If deterministic methods are used, the term “reasonable certainty” is intended to express a
high degree of confidence that the quantities will be recovered. If probabilistic methods are used, there should be at least
a 90% probability that the quantities actually recovered will equal or exceed the estimate.
B. Probable Reserves are those additional Reserves which analysis of geoscience and engineering data indicate are less
likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves. It is equally likely
that actual remaining quantities recovered will be greater than or less than the sum of the estimated Proved plus Probable
Reserves (2P). In this context, when probabilistic methods are used, there should be at least a 50% probability that the
actual quantities recovered will equal or exceed the 2P estimate.
C. Possible Reserves are those additional Reserves that analysis of geoscience and engineering data suggest are less likely
to be recoverable than Probable Reserves. The total quantities ultimately recovered from the project have a low probability
ADX ENERGY LTD
RESERVES REPORT
_________________________________________________________________________
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to exceed the sum of Proved plus Probable plus Possible (3P) Reserves, which is equivalent to the high-estimate scenario.
When probabilistic methods are used, there should be at least a 10% probability that the actual quantities recovered will
equal or exceed the 3P estimate. Possible Reserves that are located outside of the 2P area (not upside quantities to the 2P
scenario) may exist only when the commercial and technical maturity criteria have been met (that incorporate the possible
development scope). Standalone Possible Reserves must reference a commercial 2P project.
Persons compiling information about Hydrocarbons. Pursuant to the requirements of the ASX Listing Rule 5.31, the
unaudited technical and reserves information contained in this report has been prepared under the supervision of Mr. Paul
Fink. Mr. Fink is Technical Director of ADX Energy Limited, is a qualified geophysicist with 25 years of technical, commercial
and management experience in exploration for, appraisal and development of oil and gas resources. 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).
RISC independent audit and competent person reports
RISC has conducted an independent audit of the Developed Reserves for the Vienna basin Fields and a competent persons
report for Undeveloped Reserves for the Anshof Fields. The reserves described above are based on RISC’s assessments which
have been previously announced by ADX.
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 42 -
Your directors present their report for the year ended 31 December 2024.
DIRECTORS
The names and particulars of the Directors of the Company in office during the year and up to the date of this report were
as follows. Directors were in office for the entire year unless otherwise stated.
Ian Tchacos
B.Eng (Mech.)
Executive Chairman (Appointed 2 March 2010)
Mr Tchacos was appointed as Non-Executive Chairman of ADX on 2 March 2010 and appointed as Executive Chairman on
28 September 2015. He is a Petroleum Engineer with over 40 years international experience in corporate development
and strategy, mergers and acquisitions, petroleum exploration, development and production operations, commercial
negotiation, oil and gas marketing and energy finance. He has a proven management track record in a range of
international oil company environments. As Managing Director of Nexus Energy, he was responsible for this company’s
development from an onshore micro-cap explorer to an ASX top 200 offshore producer and operator.
Mr Tchacos is a recipient of the RIU Good Oil Conference John Doran Lifetime Achievement Award. The award is presented
annually to recognise an individual with an outstanding long-term record of achievement in the Australian oil and gas
industry.
Other directorships of listed companies in the last three years: 3D Energi Limited (current).
Paul Fink
MSc (Geophysics)
Executive Director (Appointed 25 February 2008)
Mr Fink has over 35 years of petroleum exploration and production industry experience in technical and management
positions. He is a graduate from the Mining University of Leoben, Austria and started his career as a seismic data processing
geophysicist and then worked predominantly on international exploration and development projects and assignments in
Austria, Libya, Bulgaria, UK, Australia and Pakistan as Exploration and Reservoir Manager for OMV. In 2005, Paul started
his own petroleum consultancy working on projects in Romania and as Vice President for Focus Energy, leading their highly
successful exploration and development campaign in Western India. Paul was a key team member for the resulting highly
successful IPO on the London Stock Exchange (Indus Gas) which led to a market capitalisation of over GBP 1.5 billion, partly
due to third party reserves audits managed by Paul.
Other directorships of listed companies in the last three years: Nil.
Edouard Etienvre
MSc (Management)
Non-Executive Director (Appointed 7 January 2020)
Mr Etienvre is an energy and natural resources executive and entrepreneur with over 15 years of experience in the oil and
gas, mining, shipping and offshore facilities sectors initially with banks including sell-side equity research and reserve-based
lending. More recently his experience has included positions with private and public E&P companies, ship owners and
offshore facilities owners, mining companies and a mid-size trading group managing investments in companies active in
the oil and gas sector. Mr Etienvre has extensive commercial, business development, risk assessment, management and
project management experience and expertise including deal sourcing, transaction structuring and execution, commercial
negotiations and financing including debt, equity, off-take finance, vendor finance and reverse take-overs.
Other directorships of listed companies in the last three years: Nil.
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 43 -
John Begg
BSc (Geol)
Non-Executive Director (Appointed 4 March 2024)
Mr Begg is a highly experienced energy professional who has been instrumental in the discovery and commercialisation of
numerous oil and gas fields in Australia, North Africa, SE Asia and California. During his career he has founded, promoted
and held executive roles in a number of companies listed in Australia and the UK. John brings valuable strategic, technical
and commercial support and guidance to the Board and management team. Like Mr Tchacos, Mr Begg has also been
awarded the RIU Good Oil Conference John Doran Lifetime Achievement Award (2018) for his outstanding long-term
record of achievement in the Australian oil and gas industry.
Other directorships of listed companies in the last three years: None.
Previous Director - Andrew Childs
BSc (Geology and Zoology)
Non-Executive Director (Appointed 11 November 2009. Resigned 4 March 2024)
Mr Childs started his professional career as an Exploration Geologist in the Eastern Goldfields of Western Australia, then
moved to petroleum geology and geophysics. He gained technical experience with Petroz as a Geoscientist and later
commercial experience as the Commercial Assistant to the Managing Director.
Other directorships of listed companies in the last three years: Xstate Resources Limited (current) and Sacgasco Limited
(previous).
COMPANY SECRETARIES
Peter Ironside B.Com, CA
Appointed 8 March 1995
Mr Ironside has a Bachelor of Commerce Degree and is a Chartered Accountant and business consultant with over 45
years’ experience in the exploration and mining industry. Mr Ironside has a significant level of accounting, financial
compliance and corporate governance experience including corporate initiatives and capital raisings. Mr Ironside has been
a director and/or Company Secretary of several ASX listed companies including Integra Mining Limited and Extract
Resources Limited (before $2.18bn takeover) and is currently a non-executive director of E79 Gold Mines Limited and
Stavely Minerals Limited.
Amanda Sparks B.Bus, CA, F.Fin
Appointed 6 October 2015
Ms Amanda Sparks is a Chartered Accountant with over 35 years of resources related financial experience, with explorers
and producers. Ms Sparks has extensive experience in company secretarial, financial management, capital raisings,
corporate transactions, corporate governance and compliance for listed companies and is currently a non-executive
director and Company Secretary of Stavely Minerals Limited, a non-executive director of Godolphin Resources Limited
and Company Secretary for E79 Gold Mines Limited.
MEETINGS OF DIRECTORS
During the year, 3 formal Board meetings of directors were held. The number of meetings attended by each director
during the year is as follows:
Name of Director
Meeting
Held Whilst a director
Meetings Attended
I Tchacos
3
3
P Fink
3
1
E Etienvre
3
3
J Begg
1
1
A Childs
2
1
As the Board has two overseas directors, regular online management meetings were held, and all-important resolutions
agreed via circular resolutions. During the year, 20 Circular Board resolutions were held.
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 44 -
DIRECTORS’ INTERESTS IN SHARES AND OPTIONS
The following table sets out each director’s relevant interest in shares and options in shares of the Company as at the date
of this report.
I Tchacos
P Fink
E Etienvre
J Begg
Shares
Ordinary fully paid shares
12,445,346
11,546,600
5,443,300
605,800
Options
Unlisted Options, Ex Price $Nil, Expiry 31/07/2025
245,625
-
-
-
Unlisted Options, Ex Price $Nil, Expiry 31/10/2025
329,465
-
-
-
Unlisted Options, Ex Price $Nil, Expiry 31/01/2026
185,796
-
-
-
Listed Options, Ex Price $0.15, Expiry 08/03/2026
-
-
-
190,476
Unlisted Options, Ex Price $0.17, Expiry 31/03/2026
-
-
-
500,000
Unlisted Options, Ex Price $Nil, Expiry 31/05/2026
311,719
-
-
-
Unlisted Options, Ex Price $Nil, Expiry 31/07/2026
269,532
-
-
-
Unlisted Options, Ex Price $Nil, Expiry 31/10/2026
380,358
-
-
-
Unlisted Options, Ex Price $Nil, Expiry 31/01/2027
283,929
-
-
-
Unlisted Options, Ex Price $Nil, Expiry 31/05/2027
275,893
-
-
-
Unlisted Options, Ex Price $Nil, Expiry 31/07/2027
300,000
-
-
-
Unlisted Options, Ex Price $Nil, Expiry 31/10/2027
218,750
-
-
-
Unlisted Options, Ex Price $Nil, Expiry 31/01/2028
131,425
-
-
-
Unlisted Options, Ex Price $Nil, Expiry 31/05/2028
89,003
-
-
-
Unlisted Options, Ex Price $Nil, Expiry 31/07/2028
196,514
-
-
-
Unlisted Options, Ex Price $Nil, Expiry 31/10/2028
167,079
-
-
-
Unlisted Options, Ex Price $Nil, Expiry 31/01/2029
213,068
132,812
-
-
Total Options
3,598,156
132,812
-
690,476
CORPORATE INFORMATION
Corporate Structure
ADX Energy Ltd is a limited liability company that is incorporated and domiciled in Australia. ADX Energy Ltd has prepared
a consolidated financial report incorporating the entities that it controlled during the year as follows:
ADX Energy Ltd
-
parent entity
AuDAX Energy Srl
-
100% owned Italian controlled entity
Bull Petroleum Pty Ltd
-
100% owned Australian controlled entity (dormant)
Terra Energy Limited
-
100% owned UK controlled entity
ADX VIE GmbH
-
Terra Energy Limited owns 100% of this Austrian controlled entity
Danube Petroleum Limited -
49.18% owned UK controlled entity
ADX Energy Panonia Srl
-
Danube Petroleum Limited owns 100% of this Romanian controlled entity
Kathari Energia Limited
-
100% owned UK controlled entity
Kathari Energia GmbH
-
Kathari Energia Limited owns 100% of this Austrian controlled entity
Principal Activity
The principal activities of the Group during the year were oil and gas production, appraisal and exploration.
Operations review
Refer to the Operations Review preceding this report.
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 45 -
Summary of Financial Position, Asset Transactions and Corporate Activities
A summary of key financial indicators for the Group, with prior year comparison, is set out in the following table:
Consolidated
Consolidated
31 December 2024
31 December 2023
$
$
Cash and cash equivalents held at year end
9,081,597
8,007,441
Net profit/(loss) for the year before tax
(6,467,571)
(4,599,566)
Income tax (expense)/benefit
(1,558,795)
389,851
Net profit/(loss) for the year after tax
(8,026,366)
(4,209,715)
Non-controlling interest in loss for the year
(158,834)
(145,506)
Included in loss for the year:
Operating revenue
10,676,046
13,178,208
Cost of sales – operating costs
(9,090,642)
(9,309,549)
Cost of sales – depreciation/amortisation
(2,660,161)
(2,281,358)
Restoration expenses – changes in abandonment provision
(408,657)
(970,159)
Dry well costs
(146,014)
(1,638,550)
Exploration expensed
(2,266,393)
(1,787,750)
Basic profit/(loss) per share
(1.52) cents
(1.12) cents
Net cash from/ (used in) operating activities
(1,766,069)
(2,916,480)
Net cash from/ (used in) investing activities
(10,305,964)
456,607
Net cash from/ (used in) financing activities
13,037,943
6,768,031
Production in Austria was as follows:
31 December 2024
31 December 2023
Crude Oil Sold (Barrels)*
85,039
102,614
Gas Sold (Boe)
5,230
8,062
Total Oil Equivalent (Boe)
90,269
110,676
* Crude oil sold represents total gross production. This includes 26,484 crude oil barrels sold from Anshof operations
for the year ended 31 December 2024 (2023: 29,801). Refer to note 25 of the financial statements for partnership
details for the Anshof operations.
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 46 -
Funds from Farmouts and Partners
During the year ADX received the following contributions from farmouts and partners associated with Anshof, Welchau and
AT-I Investment Areas:
Development expenditure and back costs EUR 10,962,117 (A$ 17,783,940).
Exploration and operating expenditure EUR 522,333 (A$ 856,778).
Loan Repayments
During the year, $619,214 of bank loans were repaid in Austria (refer to note 12 of the financial statements).
Hedging
During the year ADX has continued to deploy a rolling hedging strategy seeking to provide stable near-term revenue
generation during volatile market conditions. A number of hedging transactions have been deployed during periods of
favourable market conditions.
On 26 January 2024, ADX executed hedging transactions with Britannic Trading Limited with a fixed price swap
contract for 8,400 barrels of oil at a fixed Brent crude oil price of USD 80.00 per barrel for February 2024 to May
2024 inclusive. The quantity of hedged oil equated to approximately 70 BOPD during the period.
On 3 April 2024, ADX executed additional hedging transactions with Britannic Trading Limited with a fixed price
swap contract for 15,000 barrels of oil at a fixed Brent crude oil price of USD 85.31 per barrel for June 2024 to
October 2024 inclusive. The quantity of hedged oil equates to approximately 100 BOPD during the period.
On 5 July 2024, ADX executed further hedging transactions with Britannic Trading Limited with Fixed price swaps
for 6,000 barrels of oil at a fixed Brent crude oil price for November 2024 to December 2024 at USD 83.15 per
barrel.
Currently crude oil production from the Anshof and Vienna Basin Fields remains unhedged allowing ADX to maintain
exposure to upside in Brent crude oil pricing. Gas production from the Vienna Basin Fields is not hedged.
Net hedging gains/(losses) are disclosed in note 2 of the financial statements.
Placement Raising A$13.5 million
In May 2024, ADX advised it had successfully raised A$13.5 million (before costs) from the issue of 128,571,429 new fully
paid ordinary shares at an issue price of A$0.105 per share. One (1) free-attaching quoted option was issued for every two
(2) Placement Shares. The exercise price of the Placement Options is A$0.15 with an expiry date of 8 May 2026.
Funds raised by the Placement are being used to fund the following asset activities;
The evaluation and analysis of data from the Welchau-1 well;
The assessment of the prospectivity of exploration potential below the current total depth of the Welchau-1 well and
the potential deepening of the well;
Planning, permitting and drilling of a gas exploration well in the ADX-AT-I exploration licence which was jointly funded
via a farmout with MND;
The planning, permitting, drilling, completion and tie-in of the Anshof-2A side-track appraisal well;
The upgrade of gas processing facilities including a CO2 reduction plant at ADX’ Vienna Basin oil and gas fields; and
General working capital.
Options Exercised
In March 2024, ADX received $ 1.298 million from the exercise of 9,943,337 options at 13 cents each, and 25,000 options
at 16 cents each. Another 10,000 options at 16 cents each were exercised in October 2024.
DIVIDENDS
No dividends were paid or declared during the year. The Directors do not recommend payment of a dividend.
ENVIRONMENTAL ISSUES
The Company’s environmental obligations are regulated by the laws of the countries in which ADX has operations. The
Company has a policy to either meet or where possible, exceed its environmental obligations. No environmental breaches
have been notified by any governmental agency as at the date of this report.
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 47 -
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Significant changes in the state of affairs of the Company during the year are detailed in the Operations Report and Financial
Summary in this report.
FUTURE DEVELOPMENTS
The Company intends to continue its production operations in Austria and continue its’ exploration and development
programme on its existing permits, and to acquire further suitable permits for exploration and development. Additional
comments on likely developments are included in the Operations Report.
SHARES UNDER OPTION
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Number
Exercise Price
Expiry Date
Listed Options
64,285,731
15 cents
08/05/2026
Total Listed Options
64,285,731
Number
Exercise Price
Expiry Date
Unlisted Options
6,350,000
17 cents
30/04/2025
Unlisted Options
245,625
Nil cents
31/07/2025
Unlisted Options
500,000
17 cents
31/03/2026
Unlisted Options
2,000,000
5 cents
31/03/2026
Unlisted Options
23,000,000
5.5 cents
31/03/2026
Unlisted Options
329,465
Nil cents
31/10/2025
Unlisted Options
185,796
Nil cents
31/01/2026
Unlisted Options
311,719
Nil cents
31/05/2026
Unlisted Options
269,532
Nil cents
31/07/2026
Unlisted Options
380,358
Nil cents
31/10/2026
Unlisted Options
283,929
Nil cents
31/01/2027
Unlisted Options
275,893
Nil cents
31/05/2027
Unlisted Options
300,000
Nil cents
31/07/2027
Unlisted Options
218,750
Nil cents
31/10/2027
Unlisted Options
131,425
Nil cents
31/01/2028
Unlisted Options
89,003
Nil cents
31/05/2028
Unlisted Options
196,514
Nil cents
31/07/2028
Unlisted Options
167,079
Nil cents
31/10/2028
Unlisted Options
345,880
Nil cents
31/01/2029
Total Unlisted Options
35,580,968
No option holder has any right under the options to participate in any other share issue of the Company or any other
related entity.
During the year, the following options were exercised:
-
9,943,337 options at 13 cents each;
-
35,000 options at 16 cents each; and
-
1,684,225 options at a nil exercise price.
INDEMNIFICATION AND INSURANCE OF OFFICERS
The Company has paid a premium to insure the Directors and Officers of the Company and its controlled entities. Details of
the premium are subject to a confidentiality clause under the contract of insurance.
The liabilities insured are costs and expenses that may be incurred in defending civil or criminal proceedings that may be
brought against the officers in their capacity as officers of entities in the group.
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 48 -
REMUNERATION REPORT (AUDITED)
The Directors present the 2024 Remuneration Report, outlining key aspects of ADX’ remuneration policy and framework,
together with remuneration awarded this year.
The report is structured as follows:
A. Key management personnel (KMP) covered in this report
B. Remuneration policy, link to performance and elements of remuneration
C. Contractual arrangements of KMP remuneration
D. Remuneration awarded
E. Equity holdings and movement during the year
F.
Other transactions with key management personnel
G. Use of remuneration consultants
H. Voting of shareholders at last year’s annual general meeting
A. KEY MANAGEMENT PERSONNEL COVERED IN THIS REPORT
For the purposes of this report key management personnel (KMP) of the Group are defined as those persons having
authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly,
including any Director (whether Executive or otherwise).
Key Management Personnel during the Year
Directors
Ian Tchacos
-
Executive Chairman
Paul Fink
-
Executive Director
Edouard Etienvre
-
Non-Executive Director
John Begg
-
Non-Executive Director – appointed 4 March 2024
Andrew Childs
-
Non-Executive Director – resigned 4 March 2024
Other KMPs
Amanda Sparks
-
Company Secretary and Chief Financial Officer
B. REMUNERATION POLICY, LINK TO PERFORMANCE AND ELEMENTS OF REMUNERATION
The objective of the Group’s executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework aligns executive reward with achievement of strategic objectives and
the creation of value for shareholders.
The Board ensures that executive reward satisfies the following key criteria for good reward corporate governance
practices:
Competitiveness and reasonableness;
Acceptability to shareholders;
Transparency; and
Capital management.
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 49 -
Remuneration Philosophy
The performance of the Company depends upon the quality of its Directors and Executives. To prosper, the Company must
attract, motivate and retain highly skilled Directors and Executives.
To this end, the Company embodies the following principles in its remuneration framework:
provide competitive rewards to attract high calibre Executives; and
if required, establish appropriate, demanding performance hurdles in relation to variable Executive remuneration.
The Group has structured an executive framework that is market competitive and complementary to the reward strategy
for the organisation.
Both Executive and Non-Executive Directors may elect, subject to Shareholder approval, to reduce their cash director fees
and consulting fees in lieu of Shares in accordance with the Company’s Directors’ Share Plan (Salary Sacrifice). The Shares
are issued on a quarterly basis according to the Directors’ fees owing to each of the Directors at that time, at an issue price
of no less than the volume weighted average sale price of Shares sold on ASX during the 90 days prior to the expiration of
the corresponding calendar quarter in which the Directors’ fees were incurred. The Executive Directors may also elect,
subject to Shareholder approval, to reduce their cash consulting fees in lieu of Options in accordance with the Company’s
Performance Rights and Option Plan. The Options are issued on a quarterly basis according to the consulting fees owing to
each of the Directors at that time, using a deemed price of no less than the volume weighted average sale price of Shares
sold on ASX during the 90 days prior to the expiration of the corresponding calendar quarter in which the consulting fees
were incurred.
Remuneration Committee
Due to the limited size of the Company and of its operations and financial affairs, the use of a separate remuneration
committee is not considered efficient for ADX. The Board has taken a view that the full Board will hold special meetings or
sessions as required. The Board are confident that this process for determining remuneration is stringent and full details
of remuneration policies and payments are provided to shareholders in the annual report and on the web. The Board has
adopted the following policies for Directors’ and executives’ remuneration.
Non-Executive directors’ remuneration
Non-executive Directors’ fees are paid within an aggregate limit which is approved by the shareholders from time to time.
Retirement payments, if any, are agreed to be determined in accordance with the rules set out in the Corporations Act as
at the time of the Director’s retirement or termination. Non-executive Directors’ remuneration may include an incentive
portion consisting of options or similar instruments, as considered appropriate by the Board, which may be subject to
shareholder approval in accordance with ASX listing rules.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned
amongst Directors is reviewed annually. The Board considers the amount of Director fees being paid by comparable
companies with similar responsibilities and the experience of the Non-executive Directors when undertaking the annual
review process. Fees for Non-Executive directors are not linked to the performance of the Group.
Executive Remuneration
In determining the level and make-up of Executive remuneration, the Board negotiates a remuneration to reflect the
market salary for a position and individual of comparable responsibility and experience. Remuneration is compared with
the external market by reviewing industry salary surveys and during recruitment activities generally. If required, the Board
may engage an external consultant to provide independent advice in the form of a written report detailing market levels
of remuneration for comparable Executive roles.
Remuneration consists of a fixed remuneration and may include a long-term incentive portion as considered appropriate.
Executives’ remuneration is currently a fixed consulting fee based on a daily rate for actual days worked.
Long term incentives granted to Executives are delivered in the form of options. The option incentives granted are aimed
to motivate Executives to pursue the long-term growth and success of the Company within an appropriate control
framework and demonstrate a clear relationship between key Executive performance and remuneration. Director options
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 50 -
are granted at the discretion of the Board and approved by shareholders. Performance hurdles are not attached to vesting
periods; however, the Board may determine appropriate vesting periods to provide rewards over a period of time to key
management personnel. During the year there were no performance related payments made.
C. CONTRACTUAL ARRANGEMENTS OF KMP REMUNERATION
On appointment to the board, all non-executive directors enter into a service agreement with the Company in the form of
a letter of appointment. The letter summarises the board policies and terms, including compensation, relevant to the office
of director. Non-Executive Directors are paid a fee of A$ 33,000 per annum, inclusive of any superannuation if applicable.
In accordance with the Company’s Directors’ Share Plan (Salary Sacrifice), part may be paid in cash, and part in shares.
Remuneration and other terms of employment for the Executive Directors and the other key management personnel are
also formalised in consultancy agreements. The major provisions of the agreements relating to remuneration are set out
below.
Name
Term of
agreement
Base annual remuneration inclusive of
superannuation at 31/12/24
Termination
benefit
I Tchacos – Executive Chairman
– Technical Consultancy
Term of 2 years
commencing 1
July 2020.
Subsequently
monthly.
Technical consulting - $1,500 per day (cash)
2 months (up
to $18,000)
I Tchacos – Executive Chairman
– Corporate Consultancy
Ongoing
Corporate consulting - $500/month (cash)
plus options subject to Board and Shareholder
approval for additional work at a value of
$1,500 per day
In addition, I Tchacos receives Directors fees
of $25,000 pa. 80% paid in cash, 20% paid in
equity (subject to Shareholder approval)
2 months (up
to $18,000)
P Fink – Executive Director –
Consultancy with ADX Energy
Ltd
Term of 2 years
commencing 1
July 2020.
Subsequently
monthly.
Retainer of $500 per month (cash) plus
consulting at $1,500 per day
(50% cash and 50% equity (options), subject to
shareholder approval)
In addition, P Fink receives Directors fees of
$25,000 pa. 80% paid in cash, 20% paid in
equity (subject to Shareholder approval).
2 months (up
to $18,000)
P Fink – Executive Director –
Consultancy with ADX VIE
GmbH
No written
agreement
Consulting at EUR 900 per day
None
E Etienvre – Non-Executive
Director – Consultancy with
ADX Energy Ltd
Term of 2 years
commencing 1
July 2020.
Subsequently
monthly.
Consulting at $1,500 per day
(50% cash and 50% equity (shares), subject to
shareholder approval)
In addition, E Etienvre receives non-executive
Directors fees of $33,000 pa. 61% paid in cash,
39% paid in equity (subject to Shareholder
approval). E Etienvre also receives Director
fees from 49% owned subsidiary, Danube
Petroleum Limited of GBP 12,000 per annum
(these are currently suspended until activities
increase)
1 month (up
to $7,500)
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 51 -
Name
Term of
agreement
Base annual remuneration inclusive of
superannuation at 31/12/24
Termination
benefit
J Begg– Non-Executive Director
– Consultancy with ADX Energy
Ltd
Term of 1 year
commencing 8
January 2024.
Subsequently
monthly.
Consulting at $1,500 per day
(80% cash and 20% equity (shares), subject to
shareholder approval)
None
Amanda Sparks – Company
Secretary and Chief Financial
Officer
Ongoing
Monthly retainer of $3,200, 50% paid in cash
and 50% paid in equity. Additional hours
above 20 hours per month are paid in cash at
$160 per hour.
None
D. REMUNERATION OF KEY MANAGEMENT PERSONNEL
Details of the remuneration of each Director and named executive officer of the Company, including their personally-related
entities, during the year was as follows:
Post-
Employment
Share Based
Share Based
2024
Cash salary,
directors fees
and consulting
fees, including
accruals*
$
Superannuation
$
Shares (in lieu of
cash fees) (1)
$
Options (in lieu
of cash
consulting fees)
(1)
$
Total
$
Directors
I Tchacos
338,553
3,135
3,750
51,375
396,813
P Fink
271,947
-
1,250
1,969
275,166
E Etienvre
84,892
-
42,188
-
127,080
J Begg (2)
67,468
2,765
16,854
-
87,087
A Childs (3)
5,275
580
-
-
5,855
Other KMP
A Sparks
92,720
11,944
14,400
-
119,064
TOTAL 2024
860,855
18,424
78,442
53,344
1,011,065
(1) Share based payments. These represent the amount expensed in the year for Shares and Options in lieu of cash consulting fees.
(2) Appointed 4 March 2024.
(3) Resigned 4 March 2024.
* Includes accruals of fees paid subsequent to year end via equity.
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 52 -
Post-Employment
Share-Based
Share-Based
Share-Based
2023
Cash salary,
directors’ fees
and consulting
fees, including
accruals*
$
Superannuation
$
Shares (in lieu of
cash fees) (1)
$
Options (in lieu
of cash
consulting fees)
(1)
$
Options
(employee
incentive plan) (2)
$
Total
$
Directors
I Tchacos
347,679
3,009
3,750
60,000
-
414,438
P Fink
358,002
-
3,750
37,828
-
399,580
E Etienvre
197,767
-
124,617
-
-
322,384
A Childs
29,797
3,203
-
-
-
33,000
Other KMP
A Sparks
80,640
10,221
14,400
-
41,600
146,861
TOTAL 2023
1,013,885
16,433
146,517
97,828
41,600
1,316,263
There were no performance-related payments made during the year. Performance hurdles are not attached to
remuneration options.
Share-based Compensation
Shares:
The Company’s Directors’ Share Plan (Salary Sacrifice), allows for shares to be issued on a quarterly basis according to the
Directors’ fees owing to each of the Directors at that time, at an issue price of no less than the volume weighted average
sale price of Shares sold on ASX during the 90 days prior to the expiration of the corresponding calendar quarter in which
the Directors’ fees were incurred. The shares are issued after Shareholder approval.
The following shares were granted as equity compensation benefits (in lieu of cash remuneration) to Directors during the
year.
Date Issued
Number of Shares
Value-based on
90-Day VWAP $
In lieu of part remuneration for
the quarter ended
02/02/2024
214,660
22,969
31/12/2023
23/05/2024
131,547
20,784
31/03/2024
01/08/2024
188,501
19,604
30/06/2024
11/11/2024
234,189
23,653
30/09/2024
768,897
87,010
Issued Subsequent to Year End
06/02/2025
287,914
19,002
31/12/2024
Summarised as:
Director
2024
Number of Shares
2024
$
Ian Tchacos
43,988
5,000
Paul Fink
12,376
1,250
Edouard Etienvre
564,200
63,906
John Begg
148,333
16,854
Issued during the year
768,897
87,010
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 53 -
The following shares were granted as equity compensation benefits (in lieu of cash remuneration) to other KMPs (Amanda
Sparks) during the year.
Date Issued
Number of Shares
Value based on
90 Day VWAP $
In lieu of part remuneration for
the quarter ended
02/02/2024
44,859
4,800
31/12/2023
23/05/2024
30,380
4,800
31/03/2024
01/08/2024
46,154
4,800
30/06/2024
11/11/2024
47,525
4,800
30/09/2024
168,918
19,200
Issued Subsequent to Year End
06/02/2025
72,727
4,800
31/12/2024
Options:
The Executive Directors may also elect, subject to Shareholder approval, to reduce their cash consulting fees in lieu of
Options in accordance with the Company’s Performance Rights and Option Plan. The Options are issued on a quarterly
basis according to the consulting fees owing to each of the Directors at that time, using a deemed price of no less than the
volume weighted average sale price of Shares sold on ASX during the 90 days prior to the expiration of the corresponding
calendar quarter in which the consulting fees were incurred.
The following options were granted as equity compensation benefits (in lieu of cash remuneration) to Directors during the
year.
Date Issued
Number of Options
Value based on
90 Day VWAP $
In lieu of part remuneration for
the quarter ended
02/02/2024
131,425
14,062
31/12/2023
23/05/2024
89,003
14,063
31/03/2024
01/08/2024
196,514
20,437
30/06/2024
11/11/2024
186,571
18,844
30/09/2024
603,513
67,406
Issued Subsequent to Year End
06/02/2025
345,880
22,828
31/12/2024
Summarised as:
Director
2024
Number of Options
2024
$
Ian Tchacos
584,021
65,435
Paul Fink
19,492
1,969
Issued during the year
603,513
67,406
No other options were granted as equity compensation benefits to Directors and other Key Management Personnel.
Shares issued to Key Management Personnel on exercise of compensation options
During the year to 31 December 2024, 1,684,225 compensation options were exercised by Directors or other Key
Management Personnel (2023: 2,580,757 options). A summary of options exercised by Directors is as follows:
Number
Exercise Price
Ian Tchacos
Unlisted Options
1,551,192
Nil cents
Paul Fink
Unlisted Options
133,033
Nil cents
Total exercised
1,684,225
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 54 -
E. EQUITY HOLDINGS AND MOVEMENTS DURING THE YEAR
(a) Shareholdings of Key Management Personnel
Balance at
beginning of
the year
Options
exercised
Granted as
remuneration
On-Market
Purchases
Placement
At
appointment
/ Resignation
Balance at
end of the
year
Directors
I Tchacos
10,340,472
1,551,192
43,988
500,000
-
-
12,435,652
P Fink
11,382,251
133,033
12,376
-
-
-
11,527,660
E Etienvre
4,696,335
-
564,200
-
-
-
5,260,535
J Begg
-
-
148,333
-
380,952
-
529,285
A Childs
2,638,852
-
-
-
-
(2,638,852)
-
Other KMPs
A Sparks
3,857,919
-
168,918
-
285,714
-
4,312,551
32,915,829
1,684,225
937,815
500,000
666,666
(2,638,852)
34,065,683
(b) Option holdings of Key Management Personnel
Balance at
beginning of
the year
Granted as
remuneration
Options
exercised
Placement
/ SPP
Options
Options
expired
At
appointment
/ Resignation
Balance at
end of the
year
Exercisable
Directors
I Tchacos
4,352,259
584,021
(1,551,192)
100,000
(100,000)
-
3,385,088
3,385,088
P Fink
113,541
19,492
(133,033)
50,000
(50,000)
-
-
-
E Etienvre
-
-
-
50,000
(50,000)
-
-
-
J Begg
-
-
-
190,476
-
-
690,476
690,476
A Childs
-
-
-
50,000
-
(50,000)
-
-
Other KMPs
A Sparks
1,939,525
-
-
142,857
(509,525)
-
1,572,857
1,572,857
6,405,325
603,513
(1,684,225)
583,333
(709,525)
(50,000)
5,648,421
5,648,421
F. OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
There were no other transactions with key management personnel during the year.
G. USE OF REMUNERATION CONSULTANTS
No remuneration consultants were engaged by ADX during the year.
H. VOTING OF SHAREHOLDERS AT LAST YEAR’S ANNUAL GENERAL MEETING
The Company received more than 87.5% of “yes” votes on its Remuneration Report for the 2023 year. The Company did
not receive any specific feedback at the AGM or throughout the year on its remuneration practices.
END OF THE AUDITED REMUNERATION REPORT
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 55 -
SUBSEQUENT EVENTS
Equity Issues in Lieu of Remuneration
On 6 February 2025, ADX issued the following shares and options. These amounts were accrued in the 31 December 2024
financial statements:
a.
287,914 shares issued pursuant to ADX’ Directors’ Share Plan, approved by Shareholders on 22 May 2024. The shares
were issued to directors in consideration of remuneration elected to be paid in shares for the quarter ended 31
December 2024 ($19,002).
b.
72,727 shares issued to ADX’s Company Secretaries and consultants in consideration of remuneration elected to be
paid in shares for the quarter ended 31 December 2024 ($4,800).
c.
345,880 Options granted to Directors Ian Tchacos and Paul Fink, as approved by Shareholders on 22 May 2024. The
options were granted in consideration of consultancy fees remuneration elected to be paid in options for the quarter
ended 31 December 2024 (value $22,828). The options have a nil exercise price and expire on 31 January 2028.
Loan Note Variations
On 10 January 2025, ADX announced that it had entered into deeds of variation with the Loan Note holders in relation to
25 Loan Notes of A$ 50,000 each totalling A$ 1.25 million (Loan Notes).
Five (5) Loan Notes of A$ 50,000 each (A$ 250,000 in aggregate) were repaid on the original repayment date of 11 January
2025.
The variation to the Loan Note terms provides funding flexibility to ADX allowing it to utilise its current cash to fund its
planned asset development program.
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:
Loan Note A
Loan Note B
Total Loan Notes
Face Value of Each Loan Note
$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
with an Exercise Price of $0.055,
expiring 31 March 2026 – Per
Loan Note
500,000
per Loan Note
(2,000,000 in Total)
1,000,000
per Loan Note
(21,000,000 in Total)
23,000,000
in Total
There are no other matters or circumstances that have arisen since 31 December 2024 that have or may significantly affect
the operations, results, or state of affairs of the Group in future years.
CORPORATE GOVERNANCE
The Directors of the Company support and adhere to the principles of corporate governance, recognising the need for the
highest standard of corporate behaviour and accountability. Please refer to the Company’s website for details of corporate
governance policies:
http://adx-energy.com/en/investors/corporate-governance.php
ADX ENERGY LTD
DIRECTORS’ REPORT
__________________________________________________________________________________________________
- 56 -
AUDIT INDEPENDENCE AND NON-AUDIT SERVICES
Auditor’s independence - section 307C
The Auditor’s Independence Declaration is included on page 57 of this report.
Non-Audit Services
There were no non-audit services provided during the year.
Signed in accordance with a resolution of the Directors.
Ian Tchacos
Executive Chairman
Dated this 31st day of March 2025
In.Corp Audit & Assurance Pty Ltd
ABN 14 129 769 151
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 team@incorpadvisory.au
W incorpadvisory.au
To the directors of ADX Energy Ltd:
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION
307C OF THE CORPORATIONS ACT 2001
Liability limited by a scheme approved under Professional Standards Legislation
In.Corp Audit & Assurance Pty Ltd
Graham Webb
Director
31 March 2025
As lead auditor of the audit of ADX Energy Ltd for the year ended
31 December 2024, 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 audit; and
•
no contraventions of any applicable code of professional conduct in
relation to the audit.
This declaration is in respect of ADX Energy Ltd and the entities it
controlled during the year.
57
ADX ENERGY LTD
DIRECTORS’ DECLARATION
__________________________________________________________________________________________________
- 58 -
1.
In the opinion of the directors:
a)
The financial statements and notes are in accordance with the Corporations Act 2001, including:
i)
giving a true and fair view of the Group’s financial position as at 31 December 2024 and of its performance
for the year then ended; and
ii)
complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and
the Corporations Regulations 2001; and
iii) complying with International Financial Reporting Standards (IFRS) as stated in Note 1 of the financial
statements;
iv) the information disclosed in the consolidated entity disclosure statement is true and correct; and
b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
2.
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 year ended 31 December 2024.
This declaration is signed in accordance with a resolution of the Board of Directors.
Ian Tchacos
Executive Chairman
Dated this 31st day of March 2025
ADX ENERGY LTD
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 59 -
Consolidated
Year ended
31 December
2024
Year ended
31 December
2023
Note
$
$
Operating revenue
2
10,676,046
13,178,208
Cost of sales
2
(11,750,803)
(11,865,367)
Gross (loss)/profit
(1,074,757)
1,312,841
Other income
2
1,286,358
3,628,457
Other Expenses:
Administration, staff and corporate expenses,
net of recoveries from projects (including share-based payments)
2
(3,417,336)
(4,895,548)
Exploration expensed
(2,266,393)
(1,787,750)
Restoration expenses – changes in abandonment provision
14
(408,657)
(970,159)
Dry well costs
9
(146,014)
(1,638,550)
Finance costs
2
(421,474)
(244,439)
Loss on disposal of plant and equipment
(19,298)
(4,418)
Total other expenses
(6,679,172)
(9,540,864)
Loss before income tax
(6,467,571)
(4,599,566)
Income tax (expense)/benefit
4
(1,558,795)
389,851
LOSS AFTER INCOME TAX
(8,026,366)
(4,209,715)
Loss is attributable to:
Owners of ADX Energy Ltd
(7,867,532)
(4,064,209)
Non-controlling interest
17
(158,834)
(145,506)
(8,026,366)
(4,209,715)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
275,771
240,499
Other comprehensive income for the year, net of tax
275,771
240,499
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
(7,750,595)
(3,969,216)
Total comprehensive income is attributable to:
Owners of ADX Energy Ltd
(7,440,917)
(3,699,668)
Non-Controlling Interest
(309,678)
(269,548)
(7,750,595)
(3,969,216)
Earnings per share for loss attributable to the ordinary equity
holders of the Company:
Cents Per
Share
Cents Per
Share
Basic loss per share
5
(1.52)
(1.12)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
ADX ENERGY LTD
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
__________________________________________________________________________________________________
- 60 -
Consolidated
31 December
2024
31 December
2023
Note
$
$
ASSETS
Current Assets
Cash and cash equivalents
6
9,081,597
8,007,441
Trade and other receivables
7
3,457,664
3,421,979
Inventories
8
2,898,333
2,255,367
Total Current Assets
15,437,594
13,684,787
Non-Current Assets
Other receivables
7
1,142,417
1,104,192
Oil and gas properties
9
33,570,401
25,145,587
Right of use assets
10
1,122,392
1,209,783
Deferred tax assets
4
-
1,490,803
Total Non-Current Assets
35,835,210
28,950,365
Total Assets
51,272,804
42,635,152
LIABILITIES
Current Liabilities
Trade and other payables
11
4,869,630
5,136,865
Borrowings
12
1,890,571
609,394
Lease liabilities – right of use assets
13
113,626
105,644
Provisions
14
307,398
241,701
Total Current Liabilities
7,181,225
6,093,604
Non-Current Liabilities
Borrowings
12
-
1,403,067
Lease liabilities – right of use assets
13
1,035,614
1,110,752
Provisions
14
20,318,163
18,286,204
Total Non-Current Liabilities
21,353,777
20,800,023
Total Liabilities
28,535,002
26,893,627
Net Assets
22,737,802
15,741,525
Equity
Issued capital
15
105,161,657
90,503,290
Reserves
16
5,914,610
5,399,490
Accumulated losses
(96,140,879)
(88,273,347)
Capital and reserves attributable to owners of ADX Energy Ltd
14,935,388
7,629,433
Non-controlling interests
17
7,802,414
8,112,092
Total Equity
22,737,802
15,741,525
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
ADX ENERGY LTD
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 61 -
Issued
Capital
Reserves
Accumulated
Losses
Non-
Controlling
Interest
Total
Equity
$
$
$
$
$
At 1 January 2023
84,105,646
4,121,084
(84,209,138)
8,381,640
12,399,232
Loss for the year
-
-
(4,064,209)
(145,506)
(4,209,715)
Other comprehensive income
-
364,541
-
(124,042)
240,499
Total comprehensive income for the year, net
of tax
-
364,541
(4,064,209)
(269,548)
(3,969,216)
Transactions with owners in their capacity as
owners:
Issue of share capital
6,714,188
-
-
-
6,714,188
Costs of issue of share capital
(316,544)
-
-
-
(316,544)
Share-based payments – options and
performance rights
-
913,865
-
-
913,865
6,397,644
913,865
-
-
7,311,509
As at 31 December 2023
90,503,290
5,399,490
(88,273,347)
8,112,092
15,741,525
At 1 January 2024
90,503,290
5,399,490
(88,273,347)
8,112,092
15,741,525
Loss for the year
-
-
(7,867,532)
(158,834)
(8,026,366)
Other comprehensive income
-
426,615
-
(150,844)
275,771
Total comprehensive income for the year, net of
tax
-
426,615
(7,867,532)
(309,678)
(7,750,595)
Transactions with owners in their capacity as
owners:
Issue of share capital
15,483,509
-
-
-
15,483,509
Costs of issue of share capital
(825,142)
-
-
-
(825,142)
Share based payments – options
-
88,505
-
-
88,505
14,658,367
88,505
-
-
14,746,872
As at 31 December 2024
105,161,657
5,914,610
(96,140,879)
7,802,414
22,737,802
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
ADX ENERGY LTD
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 62 -
Consolidated
Year ended
31 Dec 2024
Year ended
31 Dec 2023
Note
$
Cash flows from operating activities
Receipts in the ordinary course of activities
14,130,408
14,674,462
Payments to suppliers and employees, including for
exploration expensed
(16,053,026)
(17,286,768)
Interest received
186,680
3,760
Interest paid
(169,713)
(58,564)
Income taxes refunded/(paid)
139,582
(249,370)
Net cash flows from/(used in) operating activities
6(i)
(1,766,069)
(2,916,480)
Cash flows from investing activities
Payments for oil and gas properties
(27,721,502)
(5,090,328)
Payments for oil and gas properties -
appraisal/development
(84,561)
(129,153)
Receipts from farmouts/partners
17,783,940
5,999,966
Other payments
(283,841)
(323,878)
Net cash flows from/(used in) investing activities
(10,305,964)
456,607
Cash flows from financing activities
Proceeds from issue of shares
13,500,000
6,378,000
Proceeds from the exercise of options
1,298,211
-
Payment of share issue costs
(825,119)
(316,544)
Proceeds from loan notes
-
1,500,000
Repayment of bank loans
(619,214)
(613,491)
Payment of lease liabilities (right of use assets)
(156,011)
(179,934)
Insurance funding repayments
(159,924)
-
Net cash flows from financing activities
13,037,943
6,768,031
Net increase in cash and cash equivalents held
965,910
4,308,158
Net foreign exchange differences
108,246
129,652
Add opening cash and cash equivalents brought forward
8,007,441
3,569,631
Closing cash and cash equivalents at the end of the year
6
9,081,597
8,007,441
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 63 -
NOTE 1 –MATERIAL ACCOUNTING POLICY INFORMATION
(i)
Basis of Preparation
The financial report is a general-purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001, Australian Accounting Standards and authoritative pronouncements of
the Australian Accounting Standards Board. The financial report has also been prepared on a historical cost basis.
ADX Energy Ltd is a for-profit entity for the purpose of preparing the financial statements.
The financial report is presented in Australian dollars, which is the group’s presentation currency.
Functional and presentation currency
The functional currency of the parent entity is Australian Dollars. ADX has identified Australian dollars as its
functional currency on the basis that all fundraising is in Australian dollars (AUD), 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
Terra Energy Limited – GBP
ADX VIE GmbH – EUR
Danube Petroleum Limited – GBP
ADX Energy Panonia Srl – EUR
Kathari Energia Limited – GBP
Kathari Energia GmbH – EUR
The presentation currency of the Group is Australian dollars.
Going Concern
The financial statements have been prepared on the basis that the Company will continue to meet its commitments
and can therefore continue normal business activities and realise assets and settle liabilities in the ordinary course
of business.
As a producer in Austria, the Group expects to generate positive cash flows, however with a focus on exploration
and development, the Group may need additional cashflows to finance these activities. The Group incurred a net
loss of $8,026,366 for the year ended 31 December 2024 and had a net cash outflow from operating activities of
$1,766,069. During the year, the financial results were lower due to the Anshof-3 well in Upper Austria being shut-
in after reaching the regulatory limit of 5,000 tonnes (36,000 Barrels) for test production and only recommenced
through a Permanent Production Facility on 3 April 2024.
The ability of the Company to continue as a going concern may require additional capital fundraising, farmouts of
projects or other financing opportunities. During the year, ADX successfully raised A$13.5 million (before costs)
under a placement. The Directors believe that the Company will continue as a going concern and has the ability to
raise additional funds if required. As a result, the financial information has been prepared on a going concern basis.
However, should fundraising, farmouts or any alternative financing opportunities be unsuccessful, the Company
may not be able to continue as a going concern. No adjustments have been made relating to the recoverability and
classification of liabilities that might be necessary should the Company not continue as a going concern.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 64 -
NOTE 1 – MATERIAL ACCOUNTING POLICY INFORMATION – continued
(ii)
Statement of Compliance
The financial report complies with Australian Accounting Standards and International Financial Reporting Standards
(IFRS).
(iii)
Adoption of new and revised standards
Early adoption of accounting standards
The Group has not elected to apply any pronouncements before their operative date in the annual reporting year
beginning 1 January 2024.
New and amended standards adopted by the Group
There were no material new or amended standards implemented that had a material impact on the financial
statements during the year.
(iv)
Significant Accounting Estimates and Judgements
Significant accounting judgements
In the process of applying the Group’s accounting policies, management has made the following judgments, apart
from those involving estimations, which have the most significant effect on the amounts recognised in the financial
statements.
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of
future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to
the carrying amounts of certain assets and liabilities within the next annual reporting year are:
Share-based payment transactions
The Group measures the cost of equity-settled transactions by reference to the fair value of the equity instruments
at the date at which they are granted. The fair value is determined using the value of the services, or a Black-Scholes
option pricing model.
Commitments - Exploration
The Group has certain minimum exploration commitments to maintain its right of tenure of its permits. These
commitments require estimates of the cost to perform exploration work required under these permits.
Deferred Appraisal Costs
The Group capitalises acquisition expenditure and appraisal costs relating to its permits where it is considered likely
to be recoverable or where the activities have not reached a stage which permits a reasonable assessment of the
existence of reserves. While there are certain areas of interest from which no reserves have been extracted, the
Directors are of the continued belief that such expenditure should not be written off since exploration activities in
such areas have not yet concluded.
Impairment of Oil and Gas Properties
For oil and gas properties, the expected future cash flow estimation is based on a number of factors, variables and
assumptions, the most important of which are estimates of reserves and resources, future production profiles,
commodity prices, costs and foreign exchange rates. These estimates may impact any impairment calculations.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 65 -
NOTE 1 – MATERIAL ACCOUNTING POLICY INFORMATION - continued
(iv) Significant Accounting Estimates and Judgements - continued
Provision for Restoration and Rehabilitation
Obligations associated with exploration, development and production assets are recognised when the Group has a
present obligation, the future sacrifice of the economic benefits is probable, and the provision can be measured
reliably. The determination of the provision requires significant judgement in terms of the best estimate of the costs
of performing the work required, the timing of the cash flows and the appropriate discount rate. A change in any,
or a combination of, the key assumptions used to determine the provision could have a material impact on the
carrying value of the provision.
On an ongoing basis, the restoration will be remeasured in line with the changes in the time value of money
(recognised as an expense and an increase in the provision), and additional disturbances recognised as additions to
the provision. The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding
the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (where the effect of the time value of money is material).
Asset retirement obligation costs will be incurred by the Group at the end of the operating life of some of the
Group’s facilities and properties. The Group assesses its asset retirement obligations provision at each reporting
date. The ultimate asset retirement obligations costs are uncertain and cost estimates can vary in response to many
factors, including changes to relevant legal requirements, the emergence of new restoration techniques or
experience at other production sites. The expected timing, extent and amount of expense can also change.
Therefore, significant estimates and assumptions are made in determining the provision for asset retirement
obligations. As a result, there could be significant adjustments to the provisions established which would affect
future financial results. The provision at the reporting date represents management’s best estimate of the present
value of the future asset retirement obligations costs required.
(v)
Foreign currency translation
The presentation currency of the Group is Australian Dollars. The functional currency of ADX Energy Ltd is Australian
Dollars. ADX’s subsidiaries have the following functional currencies:
Danube Petroleum Limited – GBP
AuDAX Energy Srl – EUR
Bull Petroleum Pty Ltd – AUD
ADX VIE GmbH – EUR
Terra Energy Limited – GBP
ADX Energy Panonia Srl – EUR
Kathari Energia Limited – GBP
Kathari Energia GmbH – EUR
Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the
date of the transaction. Monetary assets and liabilities denominated in foreign currencies are converted at the rate
of exchange ruling at the balance sheet date.
As at the reporting date the assets and liabilities of the subsidiaries are translated into the presentation currency of
ADX Energy Ltd at the rate of exchange ruling at the balance sheet date and the income statements are translated
at the weighted average exchange rates for the year.
The exchange differences arising on the retranslation are taken directly to a separate component of equity. On
disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular foreign
operation is recognised in the income statement.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 66 -
NOTE 2 –INCOME AND EXPENSES
Revenue
Revenue is recognised when or as the Group transfers control of goods or services to a customer at the amount to
which the Group expects to be entitled. If the consideration promised includes a variable component, the Group
estimates the expected consideration for the estimated impact of the variable component at the point of recognition
and re-estimated at every reporting period. Revenue from the sale of oil and gas is recognised and measured in the
accounting period in which the goods and/or services are provided based on the amount of the transaction price
allocated to the performance obligations. The performance obligation is the supply of oil and gas over the contractual
term; the units of supply represent a series of distinct goods that are substantially the same with the same pattern of
transfer to the customer. The performance obligation is considered to be satisfied as the customer receives the supply
through the pipeline, based on the units delivered. Hence revenue is recognised over time.
Exploration, evaluation and appraisal expenditure
Exploration expenditure is expensed to the profit or loss statement as and when it is incurred and included as part of
cash flows from operating activities.
Evaluation/appraisal and development expenditure is capitalised to the Statement of Financial Position as oil and gas
properties. Evaluation/appraisal is deemed to be activities undertaken following a discovery from the beginning of
appraisal and pre-feasibility studies conducted to assess the technical and commercial viability of extracting a resource
before moving into the Development phase. The criteria for carrying forward the costs are:
- Such costs are expected to be recouped through successful development and exploitation of the area of interest,
or alternatively by its sale; or
- Evaluation activities in the area of interest that have not yet reached a state which permits a reasonable assessment
of the existence or otherwise of economically recoverable reserves and active and significant operations in, or in
relation to, the area are continuing.
Costs carried forward in respect of an area of interest which is abandoned are written off in the year in which the
abandonment decision is made.
Consolidated
Year Ended
31 December
2024
Year Ended
31 December
2023
Note
$
$
OPERATING REVENUE
Oil sales
9,624,357
11,831,146
Gas sales
512,467
1,051,873
10,136,824
12,883,019
Hedging gains/(losses), net
152,616
(109,679)
Other operating revenue (including reimbursements)
386,606
404,868
10,676,046
13,178,208
COST OF GOODS SOLD
Operating costs
8,332,138
8,473,800
Royalties
679,919
746,322
Depreciation
2,384,011
2,281,358
Amortisation of asset retirement obligation assets
276,150
274,460
Partner share of Anshof operations
25
78,585
89,427
11,750,803
11,865,367
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 67 -
Consolidated
Year Ended
31 December
2024
Year Ended
31 December
2023
Note
$
$
NOTE 2 –INCOME AND EXPENSES - continued
OTHER INCOME:
Income from partners /farmouts- cost recoveries
1,033,694
3,391,226
Option fee income
-
163,635
Interest revenue
186,681
3,760
Other
65,983
69,836
1,286,358
3,628,457
OTHER EXPENSES – Administration and corporate expenses:
Share-based payments – in lieu of cash remuneration
387,116
470,062
Share-based payments – performance rights and options
386,666
634,590
3(a)
773,782
1,104,652
Less: prior period accrued share-based payments
(482,884)
(140,335)
Add: accrued share-based payments issued/to be issued after the
period end
280,128
482,884
Net foreign exchange (gains)/losses
(346,700)
(84,892)
Short-term lease expenses
46,326
88,341
Depreciation – right of use assets
126,835
133,692
Defined contribution superannuation/pension expense
188,922
153,430
Other administration, personnel and corporate expenses
5,810,586
5,233,086
6,396,995
6,970,858
Less: project cost recoveries
(2,979,659)
(2,075,310)
3,417,336
4,895,548
OTHER EXPENSES – Finance costs:
Interest expense
168,578
81,961
Accretion
98,327
91,740
Right of use assets – interest
56,501
22,271
Share-based payments – borrowing costs
3(a)
96,933
48,467
Other bank fees and borrowing costs
1,135
-
421,474
244,439
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 68 -
NOTE 3 – EQUITY-BASED PAYMENTS
Equity settled transactions:
The Group provides benefits to executive directors, employees and consultants of the Group in the form of share-based
payments, whereby those individuals render services in exchange for shares or rights over shares (equity-settled
transactions). When provided, the cost of these equity-settled transactions with these individuals is measured by reference
to the fair value of the equity instruments at the date at which they are granted.
The fair value of options is determined either using the Black-Scholes option pricing model or in the case of consulting by
directors, the number of options granted will be determined by dividing the Directors’ consulting fees that the Company
has agreed to pay to the Related Parties via equity using a deemed price based on the volume weighted average sale price
of Shares sold on ASX during the 90 days prior to the expiration of the corresponding calendar quarter in which the
Directors’ consulting fees were incurred. In valuing equity-settled transactions, no account is taken of any performance
conditions other than conditions linked to the price of the shares of ADX Energy Ltd (market conditions), if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in
which the performance and/or service conditions are fulfilled, ending on the date on which the relevant individuals become
fully entitled to the award (the vesting date). The cumulative expense recognised for equity-settled transactions at each
reporting date until the vesting date reflects:
(i)
the grant date fair value of the award;
(ii)
the extent to which the vesting period has expired; and
(iii)
the number of awards that, in the opinion of the Directors of the Company, will ultimately vest taking into
account such factors as the likelihood of non-market performance conditions being met.
This opinion is formed based on the best available information at the reporting date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional upon
a market condition. If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and
any expense not yet recognised for the award is recognised immediately. If an equity-settled award is forfeited, any expense
previously recognised for the award is reversed. However, if a new award is substituted for a cancelled award and
designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were
a modification of the original award, as described in the previous paragraph.
(a)
Value of equity-based payments in the financial statements
Consolidated
Note
Year Ended
31 December
2024
Year Ended
31 December
2023
$
$
Expensed in the profit and loss:
Share-based payments – Employee Performance Rights and Options 3(b)(iv)
21,100
634,590
Share-based payments – Employee Shares
3(b)(iv)
365,566
-
Options issued in lieu of fees:
Share-based payments – Options Issued to Directors
3(b)(ii)
67,406
133,875
454,072
768,465
Shares issued in lieu of fees:
Share-based payments – Shares Issued to Directors
3(b)(i)
87,010
197,417
Share-based payments – Shares Issued to other KMPs
3(b)(iii)
19,200
19,200
Share-based payments – Shares Issued to consultants
3(b)(iii)
213,500
119,570
773,782
1,104,652
Options issued to loan note holders in 2023- Share-based
payments – Borrowing costs
96,933
48,467
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 69 -
NOTE 3 – EQUITY-BASED PAYMENTS – continued
(b) Summary of remuneration equity-based payments granted during the year:
(i)
Shares granted to Directors pursuant to ADX’ Directors’ Share Plan, approved by Shareholders on 22 May
2024 as follows:
Date Issued
Number of
Shares
Value-based on 90-
Day VWAP $
In lieu of part remuneration for
the quarter ended
02/02/2024
214,660
22,969
31/12/2023
23/05/2024
131,547
20,784
31/03/2024
01/08/2024
188,501
19,604
30/06/2024
11/11/2024
234,189
23,653
30/09/2024
768,897
87,010
Issued Subsequent to
Year End
06/02/2025
287,914
19,002
31/12/2024
Summarised as:
Director
2024
Number of
Shares
2024
Remuneration
value $
2023
Number of
Shares
2023
Remuneration
value $
Ian Tchacos
43,988
5,000
67,460
5,000
Paul Fink
12,376
1,250
67,460
5,000
Edouard Etienvre
564,200
63,906
2,558,808
187,417
John Begg
148,333
16,854
-
-
Total
768,897
87,010
2,693,728
197,417
(ii)
Options granted to Directors pursuant to ADXs’ Performance Rights and Option Plan, approved by
Shareholders on 22 May 2024 as follows:
Date Issued
Number of
Options
Value based on 90
Day VWAP $
In lieu of part remuneration for
the quarter ended
02/02/2024
131,425
14,062
31/12/2023
23/05/2024
89,003
14,063
31/03/2024
01/08/2024
196,514
20,437
30/06/2024
11/11/2024
186,571
18,844
30/09/2024
603,513
67,406
Issued Subsequent to
Year End
06/02/2025
345,880
22,828
31/12/2024
Summarised as:
Director
2024
Number of
Options
2024
Remuneration
value $
2023
Number of
Options
2023
Remuneration
value $
Ian Tchacos
584,021
65,437
1,078,572
79,875
Paul Fink
19,492
1,969
738,988
54,000
Issued during the year
603,513
67,406
1,817,560
133,875
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 70 -
NOTE 3 – EQUITY-BASED PAYMENTS – continued
(b)
Summary of remuneration equity-based payments granted during the year - continued:
(iii)
Shares to consultants and company secretaries in lieu of remuneration:
Date Issued
Number of
Shares
Value based on
90 Day VWAP $
In lieu of part remuneration for
the quarter ended
02/02/2024
402,643
41,388
31/12/2023
23/05/2024
446,043
64,819
31/03/2024
01/08/2024
603,468
64,571
30/06/2024
11/11/2024
615,414
61,922
30/09/2024
2,067,568
232,700
Issued Subsequent to
Year End
06/02/2025
993,070
70,905
31/12/2024
Summarised as:
2024
Number of
Shares
2024
Remuneration
value $
2023
Number of
Shares
2023
Remuneration
value $
Other KMPs
Amanda Sparks
169,918
19,200
259,046
19,200
Consultants
Other consultants
1,897,650
213,500
1,618,825
119,570
Issued during the year
2,067,568
232,700
1,877,871
138,770
(iv)
During the year the following securities were granted as equity compensation benefits to employees and
consultants:
a) 500,000 unlisted options granted and allotted on 29 February 2024 to a consultant pursuant to the
Company’s Employee Incentive Plan ($21,100); and
b) 2,972,081 fully paid shares issued on 29 October 2024 to employees in Vienna pursuant to the
Company’s Employee Incentive Plan for the 2023/2024 year ($365,566).
Black-Scholes option pricing model
The assessed fair values of the options were determined using a Black-Scholes option pricing model, taking
into account the exercise price, term of option, the share price at grant date and expected price volatility of
the underlying share, expected dividend yield and the risk-free interest rate for the term of the option. The
expected life of the options is based on historical data and is not necessarily indicative of exercise patterns
that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of
future trends, which may also not necessarily be the actual outcome. No other features of options granted
were incorporated into the measurement of fair value.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 71 -
NOTE 3 – EQUITY-BASED PAYMENTS – continued
(b)
Summary of remuneration equity-based payments granted during the year - continued:
The inputs to the model used were:
Grant date
29/02/2024
29/10/2024
Options
Shares
Spot price ($)
0.10
0.123
Exercise price ($)
0.17
N/A
Vesting date
Immediately
Immediately
Expiry date
31/03/2026
N/A
Expected future volatility (%)
100
N/A
Risk-free rate (%)
3.71
N/A
Dividend yield (%)
-
N/A
Value Each ($)
0.0422
0.123
Number Granted
500,000
2,972,081
Valuation Method
Black-Scholes
Market Price at Issue Date
(c) Weighted average exercise price
The following table shows the number and weighted average exercise price (WAEP) of share options granted as
remuneration share-based payments.
12 Months to
31 December
2024
12 Months to
31 December
2024
12 Months to
31 December
2023
12 Months to
31 December
2023
Number
WAEP $
Number
WAEP $
Outstanding at the beginning of the year
11,240,800
0.13
5,653,997
0.02
Granted to Directors during the year
603,513
Nil
1,817,559
Nil
Granted to employees during the year
500,000
0.17
6,350,000
0.17
Lapsed during the year
(425,000)
0.13
-
-
Exercised during the year
(1,684,225)
Nil
(2,580,756)
Nil
Outstanding at the end of the year
10,235,088
0.114
11,240,800
0.13
Exercisable at year-end
10,235,088
0.114
11,240,800
0.13
The weighted average share price for options exercised during the year was $Nil (2023: $Nil).
(d) Weighted average fair value
The weighted average fair value of remuneration equity-based payment options granted during the year was $0.077
(2023: $0.046).
(e) Range of exercise price
The range of exercise price for options granted as remuneration share-based payments outstanding at the end of the
year was $nil to $0.17 (2023: $nil to $0.17).
(f)
Weighted average remaining contractual life
The weighted average remaining contractual life of remuneration share-based payment options that were outstanding
as of the end of the year was 0.93 years (2023: 1.63 years).
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 72 -
NOTE 4 - INCOME TAX EXPENSE
Consolidated
Year Ended
31 December
2024
Year Ended
31 December
2023
$
$
(a) Income Tax Expense
The reconciliation between tax expense and the product of
accounting loss before income tax multiplied by the Company’s
applicable income tax rate is as follows:
Loss for the year before tax
(6,467,571)
(4,599,566)
Prima facie income tax (benefit) @ 30%
(1,940,271)
(1,379,870)
Tax effect of non-deductible items
283,379
727,502
Tax rate differential
263,413
109,895
Tax rate change – Austria
14,947
26,471
Translation differences
(43,543)
(2,509)
Deferred tax assets not brought to account
2,980,870
128,660
Income tax expense/(benefit) attributable to operating result
1,558,795
(389,851)
(b) Deferred tax assets not recognised relate to the following:
Tax losses
16,571,766
15,065,555
These deferred tax assets have not been brought to account as it is not
probable that tax profits will be available against which deductible
temporary differences can be utilised.
(c) Deferred tax assets and liabilities:
Deferred tax assets:
Tax losses - Austria
3,396,852
2,769,083
Temporary differences - Other
287,172
306,660
Less: Offset Deferred Tax Liabilities:
Temporary differences - Oil and gas properties, net of JV
(3,414,548)
(1,271,132)
Temporary differences - Asset retirement obligations
(16,534)
(35,558)
Temporary differences - Other
(252,942)
(278,250)
-
1,490,803
(d) Franking Credits
The franking account balance at year-end was $nil (2023: $nil).
(e) Tax Consolidation Legislation
ADX Energy Ltd and its 100% owned Australian subsidiaries have not formed a tax-consolidated group.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 73 -
NOTE 5 - EARNINGS PER SHARE
Consolidated
Year Ended
31 December
2024
Year Ended
31 December
2023
Cents
Cents
Basic loss per share attributable to members of ADX Energy Ltd
(1.52)
(1.12)
$
$
Loss attributable to ordinary equity holders of the Company used in
calculating:
- Basic earnings per share
(7,867,532)
(4,064,209)
Number
of shares
Number
of shares
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic earnings per share
517,832,191
362,870,060
Diluted earnings per share is not disclosed because potential ordinary shares,
being options granted, are not dilutive and their conversion to ordinary
shares would not demonstrate an inferior view of the earnings performance
of the Company.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 74 -
Consolidated
Year Ended
31 December
2024
Year Ended
31 December
2023
$
$
NOTE 6 - CASH AND CASH EQUIVALENTS
Cash at bank and on hand
9,081,597
8,007,441
NOTE 6 - CASH AND CASH EQUIVALENTS – continued
(i) Reconciliation of loss for the period to net cash flows used in operating
activities
Loss after income tax
(8,026,366)
(4,209,715)
Insurance funding payments are classified as financing cash flows
159,924
-
Interest expense on ROUA leases classified as financing cash flows
56,501
-
Income from partners classified as investing cash flows
-
(2,829,402)
Non-Cash Items:
Depreciation and amortisation
2,786,996
2,689,510
Restoration expenses – changes in abandonment provision
408,657
970,159
Dry well costs
146,014
1,638,550
Loss on sale of plant and equipment
-
4,418
Foreign exchange (gains)/losses
(346,700)
(84,892)
Share-based payments expensed
870,715
1,153,119
Accretion
98,327
91,740
Change in assets and liabilities:
(Increase)/decrease in trade and other receivables
120,454
(232,997)
(Increase)/decrease in inventories
(307,240)
(1,310,583)
(Increase)/decrease in oil and gas assets
-
(657,342)
(Increase)/decrease in deferred tax assets
1,490,803
(424,409)
Increase/(decrease) in trade and other payables
685,044
404,434
Increase/(decrease) in income tax payable
-
(233,808)
Increase/(decrease) in lease liabilities
-
3,122
Increase/(decrease) in provisions
90,802
111,616
Net cash flows (used in)/from operating activities
(1,766,069)
(2,916,480)
(ii)
Non-Cash Financing and Investing Activities
There were no non-cash financing or investing activities during the year. (2023: Issue of 8,150,000 options to loan
note holders ($145,400)). Other non-cash operating activities, consisting of shares and options granted in lieu of
remuneration are disclosed in note 3.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 75 -
Consolidated
Year Ended
31 December
2024
Year Ended
31 December
2023
$
$
NOTE 7 – TRADE AND OTHER RECEIVABLES
Current
Trade and other debtors
1,271,765
754,896
Accrued income – back costs
-
728,038
GST/VAT refundable
1,142,729
845,741
Prepayments
891,915
579,626
Prepayments – inventories
-
438,488
Under/(over) partnership cash calls (net)
99,740
-
Cash secured for credit cards
20,000
20,000
Others
31,515
55,190
Total current receivables
3,457,664
3,421,979
Information about the impairment of trade and other receivables, their credit quality and the group’s exposure to
credit risk, foreign currency risk and interest rate risk can be found in note 24. Receivables do not contain past due or
impaired assets as at 31 December 2024 (2023: none).
Consolidated
Year Ended
31 December
2024
Year Ended
31 December
2023
$
$
Non-Current
Cash secured for licences and other cash bonds
1,142,417
1,104,192
EUR 50,157 (AUD 83,959) is held as security for the Vienna office rental, EUR 26,145 (AUD 43,765) is held as security
for land rental for the Drill Site Welchau 1, and the remaining EUR 606,178 (AUD 1,014,693) is secured for the Group’s
AGS licences in Austria.
NOTE 8 – INVENTORIES
Inventories include hydrocarbon stocks, consumable supplies and maintenance and drilling spares. Inventories are
valued at the lower of cost and net realisable value. Cost is determined on a weighted average basis and includes direct
costs and an appropriate portion of fixed and variable production overheads where applicable. Inventories determined
to be obsolete or damaged are written down to net realisable value, being the estimated selling price less selling costs.
Consolidated
Year Ended
31 December
2024
Year Ended
31 December
2023
$
$
Oil and gas inventories
122,980
46,732
Materials and consumables
2,775,353
2,208,635
Total current inventories
2,898,333
2,255,367
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 76 -
NOTE 9 – OIL AND GAS PROPERTIES
Oil and gas properties are stated at cost less accumulated depreciation and impairment charges. Oil and gas properties
include the costs to acquire, construct, install or complete production and infrastructure facilities such as pipelines,
capitalised borrowing costs, development wells and the estimated cost of dismantling and restoration. Subsequent
capital costs, including major maintenance, are included in the asset’s carrying amount only when it is probable that
future economic benefits associated with the item will flow to the Group and the cost of the item can be reliably
measured.
Oil and gas properties and other plant and equipment are depreciated to their estimated residual values at rates based
on their expected useful lives with a maximum period of 100 months. All items of oil and gas properties are depreciated
using the straight-line method over their useful life capped at 100 months. They majority of the Oil and Gas equipment
is depreciated over 8.3 years.
Impairment: Oil and gas properties are assessed for impairment on a cash-generating unit (CGU) basis. Individual assets
within a CGU may become impaired if their ongoing use changes or if the benefits to be obtained from ongoing use
are likely to be less than the carrying value of the individual asset.
Consolidated
Year Ended
31 December
2024
Year Ended
31 December
2023
$
$
Austria
Buildings
236,374
266,833
Undeveloped land
189,251
182,913
Field office fixtures and equipment
281,001
340,222
Plant and machinery
6,491,416
3,511,728
Wells
7,846,509
6,960,443
Retirement obligation assets
2,041,522
1,655,805
Assets under construction
6,886,940
3,072,838
Rights and other intangible assets
586
10,807
23,973,599
16,001,589
Romania
Appraisal costs
9,596,802
9,143,998
33,570,401
25,145,587
Reconciliation of the carrying amount of oil and gas assets:
Buildings – opening balance
266,833
296,672
Depreciation
(38,889)
(38,817)
Translation differences
8,430
8,978
236,374
266,833
Undeveloped Land – opening balance
182,913
177,793
Translation differences
6,338
5,120
189,251
182,913
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 77 -
Consolidated
Year Ended
31 December
2024
Year Ended
31 December
2023
$
$
NOTE 9 – OIL AND GAS PROPERTIES - continued
Field office fixtures and equipment – opening balance
340,222
265,259
Additions
5,654
143,408
Disposals
(144)
-
Transfers
11,872
-
Depreciation
(86,649)
(75,321)
Translation differences
10,046
6,876
281,001
340,222
Plant and machinery – opening balance
3,511,728
3,723,913
Additions – net of partner contributions
3,082,022
373,687
Disposals
(19,987)
-
Transfers
618,070
-
Depreciation
(814,287)
(696,730)
Translation differences
113,870
110,858
6,491,416
3,511,728
Wells – opening balance
6,960,443
4,647,644
Additions – net of partner contributions
1,862,444
94,323
Transfers
401,656
3,568,743
Dry well costs expensed
(146,014)
-
Depreciation
(1,433,807)
(1,459,433)
Translation differences
201,787
109,166
7,846,509
6,960,443
Retirement obligation assets (Austria) – opening balance
1,655,805
1,441,571
Additions
769,618
449,456
Change of discount rate
(160,743)
-
Amortisation
(276,150)
(274,460)
Translation differences
52,992
39,238
2,041,522
1,655,805
Assets under construction – opening balance
3,072,838
4,588,376
Additions – net of partner contributions
4,739,226
3,494,943
Transfers
(1,031,598)
(3,568,743)
Dry well costs expensed
-
(1,638,550)
Translation differences
106,474
196,812
6,886,940
3,072,838
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 78 -
Consolidated
Year Ended
31 December
2024
Year Ended
31 December
2023
$
$
NOTE 9 – OIL AND GAS PROPERTIES - continued
Rights and other intangible assets – an opening balance
10,807
21,132
Depreciation
(10,378)
(11,057)
Translation differences
157
732
586
10,807
Appraisal costs – Romania – opening balance
9,143,998
8,513,327
Additions
85,397
148,804
Additions – rehabilitation and restoration provision – note 14
48,544
237,826
Translation differences
318,863
244,041
9,596,802
9,143,998
NOTE 10 – RIGHT OF USE ASSETS
Non-Current Assets
Right of use assets - properties
1,122,392
1,209,783
Reconciliation of the carrying amount of right-of-use assets:
Opening balance
1,209,783
239,640
Additions
-
1,263,948
Disposals
-
(156,782)
Depreciation
(126,835)
(133,692)
Translation differences
39,444
(3,331)
1,122,392
1,209,783
Refer to note 13 for lease liabilities for right-of-use assets.
NOTE 11 – TRADE AND OTHER PAYABLES
Current
Trade creditors and accruals
4,846,233
5,113,468
Accrued interest payable
23,397
23,397
4,869,630
5,136,865
The Group’s exposure to interest rate risk is discussed in Note 24.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 79 -
NOTE 12 – BORROWINGS
Loan Notes
On 11 July 2023, ADX secured $1,500,000 in loan note funding. A total of 30 loan notes of $ 50,000 each totalling $
1,500,000 (Loan Notes) were issued to a small number of supportive existing shareholders and new sophisticated
investors. The Loan Notes are unsecured. The terms for the Loan Notes are summarised as follows:
Loan Note A
Loan Note B
Total Loan Notes
Face Value of Each Loan Note
$50,000
$50,000
$50,000
Number of Loan Notes Issued
20
10
30
Total Loans aggregate amount
$1,000,000
$500,000
$1,500,000
Loan Term
18 Months
(11 January 2025)
18 Months
(11 January 2025)
18 Months
(11 January 2025)
Interest
Rate
per
annum
(payable quarterly in arrears)
8%
12%
8-12%
Free Attaching Unlisted Options
with an Exercise Price of $0.10,
expiring 11 January 2025
150,000 Options
per Loan Note
(3,000,000 in Total)
-
Total of 3,000,000
Options*
Free Attaching Unlisted Options
with an Exercise Price of $0.14,
expiring 11 January 2025
150,000 Options
per Loan Note
(3,000,000 in Total)
215,000 Options
per Loan Note
(2,150,000 in Total)
Total of 5,150,000
Options*
* Post-consolidated amounts
Subsequent to year end, on 10 January 2025, ADX announced that it had entered into deeds of variation with the Loan
Note holders in relation to 25 Loan Notes of A$ 50,000 each totalling A$ 1.25 million (Loan Notes).
Five (5) Loan Notes of A$ 50,000 each (A$ 250,000 in aggregate) were repaid on the original repayment date of 11 January
2025.
The variation to the Loan Note terms provides funding flexibility to ADX allowing it to utilise its current cash to fund its
planned asset development program.
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:
Loan Note A
Loan Note B
Total Loan Notes
Face Value of Each Loan Note
$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
with an Exercise Price of $0.055,
expiring 31 March 2026 – Per
Loan Note
500,000
per Loan Note
(2,000,000 in Total)
1,000,000
per Loan Note
(21,000,000 in Total)
23,000,000
in Total
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 80 -
NOTE 12 – BORROWINGS - continued
Bank Loans
As announced on 5 August 2020, ADX’ Austrian subsidiary, ADX VIE GmbH, secured banking facilities totalling EUR
1,130,000 from Volksbank Wien AG (Volksbank) and guaranteed by the Austria Wirtschafts (“Economy”) Service (the
Innovation and Start Up Financing bank of the Austrian state) (AWS), split between two loan facilities:
-
Loan A - EUR 500,000 (A$ 808,931): interest-free until 31 July 2022, at which point interest charged is at Euribor
plus 0.75%, with the rate to be at least 0%; and
-
Loan B - EUR 630,000 (A$ 1,019,253): incurring interest at 1% per annum on the drawn down value.
As at 31 December 2024, these bank loans have been repaid in full.
Consolidated
Year Ended
31 December
2024
Year Ended
31 December
2023
$
$
Current
Bank loans – Loan A – interest bearing
-
339,751
Bank loans – Loan B – interest bearing
-
269,643
Loan notes – interest bearing – unsecured *
1,500,000
-
Insurance funding **
390,571
-
1,890,571
609,394
Non-Current
Loan notes – interest bearing – unsecured
-
1,500,000
Loan notes – borrowing costs (options)
-
(145,400)
Loan notes – borrowing costs (options – accretion)
-
48,467
-
1,403,067
* As disclosed on the previous page, subsequent to year end, $250,000 of the Loan Notes were repaid, and the
remaining $1,250,000 loans were extended to a 31 March 2026 repayment date.
** Insurance funding was provided during the year totalling EUR 344,361 ($550,495) of which $159,924 was repaid
during 2024, with $390,571 to be repaid in seven equal instalments during 2025, with the final instalment due for
payment on 31 July 2025.
The Group’s exposure to liquidity and interest rate risk is discussed in Note 24.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 81 -
Consolidated
31 December
2024
31 December
2023
$
$
NOTE 13 – LEASE LIABILITIES
Current
Right of use assets
113,626
105,644
Non-Current
Right of use assets
1,035,614
1,110,752
NOTE 14 – PROVISIONS
Current
Provision for employee entitlements
307,398
241,701
Non-Current
Provision for employee entitlements
259,451
234,346
Provision for asset retirement obligations (ARO) – production assets
19,071,099
17,144,238
Provision for rehabilitation and restoration – Romania
987,613
907,620
20,318,163
18,286,204
Provision for asset retirement obligations (non-current) – opening balance
17,144,238
15,207,275
Additions capitalised – note 9
769,618
449,456
Additions capitalised (Assets under construction)
202,544
-
Additions expensed
408,657
970,159
Change of discount rate
(160,743)
-
Accretion
98,327
91,740
Translation differences
608,458
425,608
Provision for asset retirement obligations (non-current) – closing balance
19,071,099
17,144,238
Provision for rehabilitation and restoration – Romania – opening balance
907,620
651,046
Additions capitalised – note 9
48,544
237,826
Translation differences
31,449
18,748
Provision for rehabilitation and restoration – Romania – closing balance
987,613
907,620
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 82 -
Consolidated
31 December
2024
31 December
2023
$
$
NOTE 15 – ISSUED CAPITAL
(a) Issued Capital
Ordinary shares fully paid
105,161,657
90,503,290
(b) Movements in Ordinary Share Capital
Number of
Shares
Summary of Movements – Current Year (2024)
Note
2024
$
427,865,791 Closing Balance as at 1 January 2024
90,503,290
214,660 Issue of shares to Directors (part remuneration for 12/2023
quarter)
3(b)
22,969
402,643 Issue of shares to Co Secs and Consultants (remuneration for
12/2023 quarter)
3(b)
41,388
131,547 Issue of shares to Directors (part remuneration for 3/2024 quarter)
3(b)
20,784
446,043 Issue of shares to Co Secs and Consultants (remuneration for
3/2024 quarter)
3(b)
64,819
188,501 Issue of shares to Directors (part remuneration for 6/2024 quarter)
3(b)
19,604
603,468 Issue of shares to Co Secs and Consultants (remuneration for
6/2024 quarter)
3(b)
64,571
234,189 Issue of shares to Directors (part remuneration for 9/2024 quarter)
3(b)
23,653
615,414 Issue of shares to Co Secs and Consultants (remuneration for
9/2024 quarter)
3(b)
61,922
1,684,225 Options exercised at $nil
-
9,943,337 Options exercised at $0.13
1,292,610
35,000 Options exercised at $0.16
5,600
128,571,428 Placement (T1 and T2) at $0.105
13,500,000
2,972,081 Employee Share Scheme – Shares issued to employees in Vienna
3(b)
365,566
- Costs of shares issued - cash
(825,119)
573,908,327 Closing Balance as at 31 December 2024
105,161,657
Current Year transactions:
(i)
Placement Raising A$ 13.5 million
In May 2024, ADX advised it had successfully raised A$13.5 million (before costs) from the issue of 128,571,429
new fully paid ordinary shares at an issue price of A$0.105 per share. One (1) free-attaching quoted option was
issued for every two (2) Placement Shares. The exercise price of the Placement Options is A$0.15 with an expiry
date of 8 May 2026.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 83 -
NOTE 15 – ISSUED CAPITAL - continued
(b) Movements in Ordinary Share Capital - continued
Number of
Shares
Summary of Movements – Prior Year (2023)
Note: Effective 28 September 2023, ADX Shareholders approved a
capital conversion of every ten (10) existing Securities into one (1)
Security. All data below is based on post-consolidation data.
2023
$
351,291,583 Opening balance 1 January 2023
84,105,646
35,714 Issue of shares to Directors (part remuneration for 12/2022
quarter)
2,500
68,571 Issue of shares to Company Secretary (remuneration for 12/2022
quarter)
4,800
488,396 Issue of shares to Consultants (remuneration for 12/2022 quarter)
34,188
305,956 Issue of shares to Directors (part remuneration for 09/2022
quarter)
21,417
591,184 Issue of shares to Directors (part remuneration for 12/2022
quarter)
41,383
640,959 Issue of shares to Directors (part remuneration for 3/2023 quarter)
44,867
68,571 Issue of shares to Company Secretary (remuneration for 3/2023
quarter)
4,800
310,399 Issue of shares to Consultants (remuneration for 3/2023 quarter)
21,728
5,641,853 Shares issued upon exercise of Performance Rights
-
2,580,756 Options exercised by Directors at $Nil
-
677,120 Issue of shares to Directors (part remuneration for 6/2023 quarter)
47,398
68,571 Issue of shares to Company Secretary (remuneration for 6/2023
quarter)
4,800
369,679 Issue of shares to Consultants (remuneration for 6/2023 quarter)
25,878
442,795 Issue of shares to Directors (part remuneration for 9/2023 quarter)
39,852
53,333 Issue of shares to Company Secretary (remuneration for 9/2023
quarter)
4,800
450,351 Issue of shares to Consultants (remuneration for 9/2023 quarter)
37,777
48,000,000 Placement and SPP at 10 cents
4,800,000
15,780,000 Placement and SPP at 10 cents
1,578,000
Costs of share issues – cash
(316,544)
427,865,791 Closing Balance as at 31 December 2023
90,503,290
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 84 -
NOTE 15 – ISSUED CAPITAL - continued
(c)
Options on issue at year end
Number
Exercise Price
Expiry Date
Listed Options
64,285,731
15 cents
08/05/2026
Total Listed Options
64,285,731
Number
Exercise Price
Expiry Date
Unlisted Options
3,000,000
10 cents
11/01/2025
Unlisted Options
5,150,000
14 cents
11/01/2025
Unlisted Options
6,350,000
17 cents
30/04/2025
Unlisted Options
245,625
Nil cents
31/07/2025
Unlisted Options
500,000
17 cents
31/03/2026
Unlisted Options
329,465
Nil cents
31/10/2025
Unlisted Options
185,796
Nil cents
31/01/2026
Unlisted Options
311,719
Nil cents
31/05/2026
Unlisted Options
269,532
Nil cents
31/07/2026
Unlisted Options
380,358
Nil cents
31/10/2026
Unlisted Options
283,929
Nil cents
31/01/2027
Unlisted Options
275,893
Nil cents
31/05/2027
Unlisted Options
300,000
Nil cents
31/07/2027
Unlisted Options
218,750
Nil cents
31/10/2027
Unlisted Options
131,425
Nil cents
31/01/2028
Unlisted Options
89,003
Nil cents
31/05/2028
Unlisted Options
196,514
Nil cents
31/07/2028
Unlisted Options
167,079
Nil cents
31/10/2028
Total Unlisted Options
18,385,088
During the year:
(i) 603,513 unlisted options were granted in lieu of remuneration to Directors Ian Tchacos and Paul Fink.
Refer note 3(b)(ii).
(ii) 1,684,225 unlisted options were exercised by Directors (exercise price was nil as these were previously
granted in lieu of remuneration).
(iii) 500,000 unlisted options were granted to a consultant pursuant to the Company’s Employee Incentive
Plan.
(iv) 250,000 unlisted options were issued to Directors as part of the 2023 Securities Purchase Plan, upon
Shareholder approval.
(v) 9,943,337 unlisted options were exercised at an exercise price of $0.13 each.
(vi) 35,000 unlisted options were exercised at an exercise price of $0.16 each.
(vii) 13,231,674 unlisted options with an exercise price of $0.13 lapsed during the year.
(viii) 31,855,000 unlisted options with an exercise price of $0.16 lapsed during the year.
(ix) 64,285,731 listed options were issued during the year under the Placement (one (1) free-attaching option
was issued for every two (2) Placement Shares). The exercise price of the Placement Options is A$0.15
with an expiry date of 8 May 2026.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 85 -
Consolidated
31 December
2024
31 December
2023
$
$
NOTE 16 - RESERVES
Share-based payments reserve
6,726,614
6,638,109
Foreign currency translation reserve
(812,004)
(1,238,619)
5,914,610
5,399,490
Share-based payments reserve
Balance at the beginning of the year
6,638,109
5,724,244
Share-based payments (options granted)
88,505
913,865
Balance at the end of the year
6,726,614
6,638,109
Nature and purpose of the reserve:
The Share-based payments reserve is used to recognise the fair value of
options issued but not exercised.
Foreign currency translation reserve
Balance at the beginning of the year
(1,238,619)
(1,603,160)
Currency translation differences
426,615
364,541
Balance at the end of the year
(812,004)
(1,238,619)
Nature and purpose of the reserve:
The foreign currency translation reserve is used to record exchange
differences arising from the translation of the financial statements of foreign
subsidiaries.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 86 -
Consolidated
31 December
2024
31 December
2023
$
$
NOTE 17 – NON-CONTROLLING INTERESTS
Non-Controlling Interests
7,802,414
8,112,092
Movement during the year:
-
-
Balance at the beginning of the year
8,112,092
8,381,640
Share of loss for the period
(158,834)
(145,506)
Share of other comprehensive income
(150,844)
(124,042)
Balance at the end of the year
7,802,414
8,112,092
Non-controlling interests represent Reabold Resources Plc (LSE AIM:RBD) (Reabold) interest held in the Danube group.
The Danube Group consists of Danube Petroleum Limited (registered in England and Wales) and its wholly owned
Romanian subsidiary, ADX Energy Panonia Srl.
As at 31 December 2024, Reabold holds a 50.82% interest in Danube (2023: 50.82%). ADX Energy Ltd continues to
consolidate the Danube Group as it has control via day-to-day management, accounting and two out of three directors
on the board of Danube Petroleum Limited are directors of ADX Energy Ltd.
Summarised financial information for Danube Petroleum Limited and its 100% owned subsidiary ADX Energy Panonia SRL
is as follows. The amounts disclosed are before inter-company eliminations:
Consolidated
31 December
2024
31 December
2023
Summarised Statement of Financial Position
$
$
Current assets
143,723
569,779
Current liabilities
(42,250)
(198,909)
Current net assets
101,473
370,870
Non-current assets
16,195,591
15,861,710
Non-current liabilities
(987,613)
(907,620)
Non-current net assets
15,207,978
14,954,090
Net Assets
15,309,451
15,324,960
Summarised Statement of Profit or Loss and Other Comprehensive
Income
Revenue
Loss for the period
(312,541)
(286,309)
Other comprehensive income
(296,821)
(244,081)
Total comprehensive income
(609,362)
(530,390)
Loss allocated to Non-Controlling Interests
(158,834)
(145,506)
Other comprehensive income allocated to Non-Controlling Interests
(150,844)
(124,042)
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 87 -
Consolidated
31 December
2024
31 December
2023
$
$
NOTE 17 – NON-CONTROLLING INTERESTS - continued
Summarised Statement of Cash Flows
Cash flows from/(used in) operating activities (including VAT paid)
(282,159)
(139,076)
Cash flows from/(used in) investing activities
(85,397)
412,403
Cash flows from financing activities
(83,696)
185,336
Net foreign exchange differences
3,051
(3,501)
Net increase/(decrease) in cash and cash equivalents
(448,201)
455,162
NOTE 18 – DERIVATIVE FINANCIAL INSTRUMENTS
The Group’s accounting policy for cash flow hedges is as follows:
Cash flow hedges are a derivative or financial instrument designated to hedge the exposure to variability in cash flows
attributable to a particular risk associated with an asset, liability or forecast transaction.
Recognition date: At the date the instrument is designated as a hedging instrument.
Measurement: Measured at fair value. The fair value of oil derivative contracts is determined by estimating the
difference between the relevant market prices and the contract price, for the volumes of the derivative contracts.
Changes in fair value: Changes in the fair value of derivatives designated as cash flow hedges are recognised
directly in other comprehensive income and accumulated in equity in the hedging reserve to the extent that the
hedge is effective. Ineffectiveness is recognised on a cash flow hedge where the cumulative change in the
designated component value of the hedging instrument exceeds on an absolute basis the change in value of the
hedged item attributable to the hedged risk. To the extent that the hedge is ineffective, changes in fair value are
recognised immediately in the income statement within other income or other expenses. Amounts accumulated
in equity are transferred to the income statement or the statement of financial position, for a non-financial asset,
at the same time as the hedged item is recognised. When a hedging instrument expires or is sold, terminated or
exercised, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing
in equity at that time remains in equity and is recognised when the underlying forecast transaction occurs. When
a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is
immediately transferred to the income statement.
Hedge effectiveness is determined at the inception of the hedge relationship, and through regular prospective
assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The
Group enters into hedge relationships where the critical terms of the hedging instrument match with the terms of the
hedged item, and so a qualitative assessment of effectiveness is performed. If changes in circumstances affect the
terms of the hedged item such that the critical terms no longer match with the critical terms of the hedging instrument,
the Group uses the hypothetical derivative method to assess effectiveness.
Hedging reserves
The hedging reserve includes the cash flow hedge reserve and the costs of hedging reserve. The cash flow hedge reserve
is used to recognise the effective portion of gains or losses on derivatives that are designated and qualify as cash flow
hedges. The group defers the changes in the forward element of forward contracts and the time value of option
contracts in the costs of hedging reserve.
As at 31 December 2024, there were no derivative financial instruments in place.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 88 -
Company
31 December
2024
31 December
2023
$
$
NOTE 19 – PARENT ENTITY INFORMATION
Statement of Financial Position information
Current assets
6,455,793
4,852,494
Non-current assets
15,742,066
4,575,920
Current liabilities
(2,652,255)
(400,138)
Non-current liabilities
(20,536)
(1,421,993)
Net Assets
19,525,068
7,606,283
Issued capital
105,161,657
90,503,290
Reserves
6,726,616
6,638,110
Accumulated losses
(92,363,205)
(89,535,117)
19,525,068
7,606,283
Profit and loss information
Loss for the year
(2,828,088)
(3,142,856)
Other comprehensive income for the year
(2,828,088)
(3,142,856)
Commitments and contingencies
There are no commitments or contingencies, including any guarantees entered into by ADX Energy Ltd on behalf of its
subsidiaries as at year end.
Subsidiaries
Name of Controlled Entity
Class of Share
Place of
Incorporation
% Held by Parent Entity
31 December 2024
31 December 2023
AuDAX Energy Srl
Ordinary
Italy
100%
100%
Bull Petroleum Pty Ltd
Ordinary
Australia
100%
100%
Terra Energy Limited
Ordinary
UK
100%
100%
ADX VIE GmbH
Ordinary
Austria
Held 100% by Terra
Energy Limited
Held 100% by Terra
Energy Limited
Danube Petroleum Limited
Ordinary
UK
49.18%
49.18%
ADX Energy Panonia Srl
Ordinary
Romania
Held 100% by
Danube Petroleum
Limited
Held 100% by
Danube Petroleum
Limited
Kathari Energia Limited
Ordinary
UK
100%
100%
Kathari Energia GmbH
Ordinary
Austria
Held 100% by
Kathari Energia
Limited
Held 100% by
Kathari Energia
Limited
Refer to note 17, non-controlling interests, for details on Danube Petroleum Limited Group.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 89 -
Consolidated
31 December
2024
31 December
2023
$
$
NOTE 20 – COMMITMENTS AND CONTINGENCIES
(a)
Short term leases (non-cancellable):
Within one year
14,309
15,076
Later than one year, not later than five years
-
-
Balance at the end of the year
14,309
15,076
Short term leases are primarily for the office lease in Perth.
The Group has a lease-to-buy contract for a production unit for Anshof operations in upper Austria. The rental cost of EUR
50,000 per quarter (for a maximum of eight quarters) has been capitalised as assets under construction. The agreement
commenced on 1 November 2023. ADX has the option to purchase prior to the end date of 31 October 2025 with a balloon
payment of up to EUR 600,000.
The Group has a capital commitment to purchase a CO2 reduction unit. 50% of the purchase price was paid during the
2024 year (recorded as a Prepayment at year-end), and the remaining 50% (EUR 195,500, excluding VAT) is due in the 2025
year once the unit is delivered.
(b)
Commitments and Contingencies for Oil and Gas Properties
In order to maintain current rights of tenure to exploration licences the Company may be compelled to perform minimum
exploration activities to meet requirements specified by the relevant governments. These expenditure commitments may
be varied as a result of renegotiations, relinquishments, farm-outs or sales. Land leases in lower Austria are held by an
unrelated party and reimbursed by ADX. These amount to approximately EUR 51,500 per annum (A$ 86,000) and comprise
approximately 95 individual lease contracts, and have no end date or termination date. Land leases in upper Austria
(primarily government-owned) amount to approximately EUR 37,500 per annum (A$ 63,000).
Parta Exploration Licence and Iecea Mare Production Licence - Western Romania
Ownership of Parta Exploration Licence and Iecea Mare Production Licence
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 srl, 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.
Parta Exploration Licence
In December 2012, the Romanian Government ratified the concession agreement for ADX’ EX 10 Parta licence (Parta
Permit). The committed work program agreed in June 2019 for the Parta Permit required the acquisition of 60 km of 2D
and 100 km2 of 3D seismic and the drilling of two exploration wells. Total commitments are estimated at A$ 5.4 million
(EUR 3.5 million) for a 2-year period commencing 21 June 2019 following an extension agreed with the National Agency of
Mineral Resources (NAMR), which was extended for another 18 months until 3 December 2022. ADX Energy Panonia SRL
is the Romanian licence holder in accordance with the concession agreement for exploration phase 1. The total concession
agreement duration is 20 years with a possible 15-year extension. After phase 1, which expired on December 3, 2022, ADX
had the option to immediately enter phase 2 by assuming further commitments or apply for another extension, which will
require a government-ratified approval. ADX chose the second option and is in ongoing discussions with the governing
body, i.e., NAMR, with a view to the submission of an extension application to the government.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 90 -
NOTE 20 – COMMITMENTS AND CONTINGENCIES - continued
Iecea Mare Production Licence
In 2018, ADX acquired a 100% equity interest in the Iecea Mare Production licence (Licence). ADX has committed to pay a
5% royalty from the licence seller Amromco Energy for production from wells located within Licence. The current
production licence is valid until November 2034 and extensions are possible. The licence does not carry any commitments,
but an annual work-program has to be agreed with the Romanian government (via NAMR), which then becomes a
commitment. ADX estimates the annual cost for such activities may be approximately $50,000 per annum.
Data User Agreement – Upper Austria
In December 2019, ADX entered into a Data User Agreement (DUA) with RAG Austria AG (RAG) for access to RAG
Exploration Data (including 3650 km2 of modern 3D seismic) in the Molasse Basin, in Upper Austria. Under the DUA, ADX
has exclusive access to 3D and 2D seismic and geological data from RAG for oil and gas activities in its exploration,
production and gas storage licences (AGS Licences). ADX has agreed to pay RAG a licence fee as a function of the active
AGS licence areas for up to 5 years. The fee paid to RAG under the DUA in 2024 was EUR 67,494.
Upper Austria Exploration (AGS) Licences – Austria
ADX executed concession agreements for exploration, production and gas storage in Upper Austria (Upper Austria AGS)
on the 8th of January 2021 between ADX and Federal Ministry responsible for Mining (Ministry) on behalf of the Republic
of Austria. Effective on 1st April 2022, ADX successfully was awarded licence area additions for the Upper Austria AGS
Licence areas ADX-AT-I and ADX-AT-II resulting in a total area of 1022 km2. In order to secure the AGS Licences and the
related work program, ADX VIE GmbH had to put in place a bank guarantee for an amount of EUR 1,178,422 (of which EUR
606,178 is secured by cash). The total term for the AGS Licences including the newly awarded extension area is 16 years
without any relinquishment and the first 4-year firm period commenced on 1st January 2021. ADX had a 3 well exploration
drilling commitment during the first 4-year firm period. The financial and drilling commitment during first 4-year term was
exceed with the drilling of three exploration wells (two in the ADX-AT-2 licence and one in the ADX-AT-1 licence) as well as
the drilling of an appraisal well in the ADX-AT-II licence. During the reporting period ADX made an application for a licence
extension for a further 4-year period. The extension application has been confirmed by the Ministry for the second 4-year
firm period commencing on 1st January 2025. The work program obligation is one exploration well in the ADX-AT-I licence
and one exploration well in the ADX-AT-II licence for the period 2025 to 2028.
ADX has entered into partnership agreements with MND Austria a.s. (MND) which are described below in relation to ADX-
AT-I and with within the Anshof Discovery Area in ADX-AT-II. MND holds economic interests in the areas of 50% and 30%
respectively having satisfied earn in obligations in each area during the reporting period. In accordance the
abovementioned partnership agreements MND may fund its own economic interests in future exploration drilling in each
licence.
Anshof Prospect in Upper Austria – Xstate Partnership Agreement
In November 2021, ADX signed a farm-in agreement with Xstate Resources Limited (Xstate) to partially fund the drilling of
the Anshof prospect in the ADX-AT-II exploration licence in Upper Austria (Farmin HOA). Under the terms of the Farmin
HOA, Xstate has funded 40% of the Anshof well drilling expenditure up to a cap amount of EUR 1.8 million (EUR 720,000
net to Xstate) to earn a 20% economic interest in the Anshof Prospect Area. Xstate satisfied its funding commitments by
funding 40% of the Anshof well drilling expenditures and has earned an economic interest in the Anshof Prospect Area.
Xstate has elected not to fund 40% of a second well in Anshof or the Anshof Farmin Area to earn a 20% economic interest
in the entire Anshof Farmin Area (Second Well Funding).
As a result of the abovementioned election Xstate only has economic rights in relation to the Anshof Prospect Area, not
the entire Anshof Farmin Area.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 91 -
NOTE 20 – COMMITMENTS AND CONTINGENCIES - continued
Anshof Field Area in Upper Austria – MND Partnership Agreement
On 7 August 2023, ADX and MND entered into an Energy Investment Agreement (EIA) in relation to the appraisal and
development of the Anshof Field Area The total firm investment payment obligations under the EIA by MND are EUR 5.28
million for the drilling, completion and tie-in of the Anshof-2 and Anshof-1 wells. Under the terms of EIA, MND has secured
30% economic interest in the Anshof Field Area by the payment of past costs as well as the payment of firm investment
obligations. To date MND has funded the drilling of the Anshof-2 well and the subsequent Anshof-2A. MND has not yet
funded the drilling of second well in accordance with the EIA.
ADX VIE, MND and existing partner XST finalised partnership and operating agreements covering the Anshof Field Area
following the announced clearance of documentation between ADX VIE, MND and existing partner XST by the BMF.
ADX is the operator and retains a 50% economic interest in the Anshof Field Area with partners MND and XST holding a
30% and 20% economic interest respectively in the partnership. ADX has retained a 100% interest in the remainder of the
ADX-AT-II exploration area other than the Welchau Area where ADX holds a 75% economic interest.
Subsequent to partnership formation in August 2023, XST also elected not to participate in the drilling of the Anshof-2 and
the follow up Anshof-2A appraisal well. ADX and MND agreed to jointly fund XST’s 20% non-participation share of the
Anshof-2 and Anshof-2A wells on a 50:50 basis. As a result, ADX holds a 50% interest in the production from the Anshof-3
and a 60% interest in the Anshof-2A well.
Welchau Investment Area – MCF Partnership Agreement
On the 29th of November 2022, ADX announced an investment agreement with Kepis & Pobe Financial Group Inc., (KPFG).
KPFG committed to fund 50% of the Welchau-1 well costs based on a well cost cap of EUR 3.8 million to earn a 20%
economic interest in the Welchau Investment Area. Subsequently, KPFG satisfied completion conditions, including the
payment of initial funds for long lead items during the first quarter of 2023. As announced on 23 January 2023, KPFG
assigned its interest in the investment agreement to TSXV listed MCF Energy Ltd (MCF).
On the 9th of January 2024, ADX announced that MCF and ADX had agreed to vary the terms of the EIA such that MCF
would fund 50% of the Welchau-1 well costs up to EUR 5.1 million to earn a 25% economic interest in the Welchau
Investment Area. Following earn in MCF and ADX will paid their economic interest share of Welchau Investment Area
related costs of 25% and 75% respectively after the revised well cost cap was reached during the drilling of the Welchau-1
well in March 2024.
ADX and MCF have agreed to enter into a partnership comprised of Articles of Association, production sharing agreement
and a cooperation agreement which will cover the conduct of ongoing operations and sharing of production from the
Welchau Investment Area.
ADX-AT-I Investment Area in Upper Austria – MND Partnership Agreement
On the 5th of December 2023, ADX announced an Energy Investment Agreement (EIA) with MND for co-investment in an
exploration area within the ADX-AT-I licence (Investment Area), in Upper Austria. In accordance with the terms of the EIA
MND has paid back costs of EUR 0.45 million to ADX and has committed to fund EUR 4.5 million for exploration drilling to
earn a 50% economic interest in the Investment Area. The Lichtenberg-1 well was spudded on September 2024 and MND
satisfied their investment obligations in relation to exploration drilling to earn a 50% economic interest in the Investment
Area.
ADX is the operator and retains a 50% economic interest in the ADX-AT-I Investment Area. ADX retains a 100% interest in
the remainder of the ADX-AT-I licence area.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 92 -
NOTE 20 – COMMITMENTS AND CONTINGENCIES - continued
Welchau-1 Well Operations Interruption
ADX has continued to undertake testing operations lawfully and in accordance with Environmental Clearance provisions at
all times. Four registered Austrian environmental non-governmental organisations (NGOs) have objected to the
Environmental Clearance. After the reporting period, a court ruling has repealed a previous law allowing operations to be
undertaken during the review process for an objection to an Environmental Clearance. As a result of this ruling, ADX has
suspended the Welchau-1 testing operations (refer ASX release 14 January 2025). The basis for the above-mentioned
objection and the resulting court ruling are summarised as follows:
Four registered Austrian environmental NGOs objected to the Environmental Clearance, by submitting an appeal to
the Relevant issuing Environmental Authority as well as seeking a suspension of operations. The suspension of
operations was rejected by the Relevant Environmental Authority (“Rejection”). Testing operations at Welchau-1 were
conducted despite the appeal process on the basis of the existing regulations that such appeals do not have a
suspensive effect.
The Rejection was forwarded to the State Administrative Court of Upper Austria which in turn referred the Rejection
to Austrian Constitutional Court to examine the legal basis (Judicial Review) for the article which prevented the
suspension of operations for the period during which an objection is considered (Suspensive Effect Article). Following
the Judicial Review, the Austrian Constitutional Court determined to repeal the Suspensive Effect Article on the basis
that it was not constitutional.
Based on advice received to date by ADX’ lawyers the testing of Welchau-1 has been suspended until the State
Administrative Court of Upper Austria clarifies the approval situation.
At present the well continues to be monitored to evaluate the rate of pressure build up with a view to determining the
nature of fluid flow into the well. Monitoring of pressure and analysing the nature of fluid inflow into the well is important
to ensure that the integrity of the well is maintained.
Other contingencies
d363 C.R-.AX licence – Italy
ADX was advised on the 4th of February 2019 that the Italian senate passed legislation to suspend exploration activities in
all permits that have been approved or are in the process of being approved for a period of up to 18 months (to
approximately August 2020) to enable the government authorities to evaluate the suitability of exploration areas for
sustainable hydrocarbon exploration and production activities. The Italian senate further advised that the suspension will
be extended to the first quarter of 2021. Due to the COVID-19 pandemic the suspension of exploration activities was
further extended.
In 2022, the Italian licencing authorities (“Authorities”) offered ADX the opportunity to ratify d363 C.R-.AX prospecting
licence. The ratification was subject to a number of conditions including that only the gas potential within its d363C.R-.AX
licence is commercially exploited. ADX submitted a report to the Authorities detailing the natural gas prospectivity of the
licence, following which the Authorities reacted positively and requested ADX to submit a new work program suitable for
exploration and development of the offshore gas resources. Based on discussions with the Authorities a detailed report
and work commitment and resource potential was submitted in October 2022.
A proposed work program commitment was submitted by ADX for the first three licence years which consisted of:
150 km of seismic data purchase from ENI and Total with a minimum expenditure of EUR 70,000;
2D and 3D seismic reprocessing with a minimum expenditure of EUR 40,000; and
Acquisition of new 2D seismic of 150 line km or 60 sqkm of 3D seismic, subject to the outcome of the preceding
reprocessing and interpretation work. The financial commitment is EUR 500,000.
Note: After each licence year and fulfilment of the respective work program, ADX can drop the licence. In licence year 4,
ADX can elect to drill a well (with a commitment to reach 2500 metres total depth or drop the licence.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 93 -
NOTE 20 – COMMITMENTS AND CONTINGENCIES - continued
During the 2024 year, the licence was offered by the Authorities to ADX and, in January 2025, ADX accepted the licence in
accordance with the revised regulatory framework focusing on gas exploration. The licence acceptance included the
confirmation that ADX would commit to the maximum licence area of 346 Km2. The formal approval of the Permit is
expected during the second quarter of 2025. The final work program submitted by ADX in January 2025 was as follows;
Within 12 months of the assignment, the purchase, reprocessing and interpretation of approximately 150 km of 2D
seismic (a financial commitment of EUR 70,000 for the purchase and EUR 40,000 for seismic reprocessing, including
specialised amplitude versus offset (“AVO”) analysis).
Within 36 months of the assignment, if the interpretation of the seismic lines purchased requires a more detailed
definition of the prospects, a new 2D seismic survey of 150 km will be acquired or a 3D seismic survey of 60 km2 will
be acquired (a financial commitment of EUR 500,000).
Within 48 months of the transfer, if the interpretation of the seismic data leads to the identification of an economically
viable prospect, an exploratory well will be drilled to a depth of approx. 2,500 m total depth (a financial commitment
of EUR 20,000,000 1).
1 ADX can drop the licence after each licence year. In licence year four ADX can elect to drill a the well or drop the
licence
NOTE 21 – RELATED PARTY DISCLOSURES
(a) Compensation of Key Management Personnel
Consolidated
31 December
2024
31 December
2023
$
$
Short-term employment benefits
860,855
1,013,885
Post-employment benefits
18,424
16,433
Share-based payments
131,786
285,945
1,011,065
1,316,263
(b) Other transactions and balances with Key Management Personnel
i)
Director Ian Tchacos, through Warroorah Pty Ltd ATF Tchacos Fund and Ian Z Tchacos, provides office premises
to ADX Energy Ltd. The key terms are gross monthly rental of $2,176.86 per month, monthly estimated outgoings
of $443.66 per month (both excluding GST), lease commencing 1 August 2022 for a 12 month term, thereafter on
3 month rolling terms. Rent reviews are undertaken on 1 July of each year based on CPI. These terms are
considered normal commercial rates. Rental paid, including outgoings, for the year (excluding GST) ended 31
December 2024 totalled $30,996 (2023: $29,395).
ii) Andrew Childs, a Director of ADX until his resignation on 4 March 2024, is Executive Chairman of Xstate Resources
Limited (Xstate). Xstate holds a 20% economic interest in ADX’ Anshof field in Upper Austria.
iii) In July 2023, Company Secretary, Amanda Sparks, through the A & A Sparks S/F A/C and her spouse Anthony
Sparks, provided $100,000 loan notes to ADX Energy Ltd (refer to note 12). The interest rate was 12%. These terms
were considered normal commercial rates. During the year, interest of $12,033 (2023: $5,030) was paid or
accrued.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 94 -
NOTE 21 – RELATED PARTY DISCLOSURES - continued
(c) Transactions with Other Related Parties
i)
In July 2023, Company Secretary, Peter Ironside, through Ironside Pty Ltd , provided
$200,000 loan notes to ADX Energy Ltd (refer to note 12). The interest rate was 8% for $100,000 and 12% for
$100,000. These terms were considered normal commercial rates. During the year, interest of $20,055 (2023:
$8,384) was paid or accrued.
ii)
Consolidated
31 December
2024
31 December
2023
$
$
NOTE 22 – AUDITOR’S REMUNERATION
Amount paid or due and payable to the auditor for:
Audit and review of the financial statements
54,500
52,000
Other services
-
-
Total remuneration of auditors
54,500
52,000
NOTE 23 – SEGMENT INFORMATION
Reportable Operating Segments Identified
For management purposes, the Group has organised its operating segments into three reportable segments as follows:
Sicily Channel Offshore Exploration and Evaluation Segment: this segment includes assets and activities that are
associated with oil and gas exploration offshore Italy.
Romania Exploration and Appraisal/Development Segment: this segment includes assets and activities that are
associated with oil and gas exploration, appraisal and development in that region, and include the costs if the
parent entity, Danube Petroleum Limited.
Austria Production, Appraisal/Development and Exploration Segment: this segment includes assets and activities
that are associated with oil and gas operations in that region. All oil sales are made to a single customer in Austria,
and all gas sales are made to a single customer in Austria.
The following items are not allocated to segments as they are not considered part of core operations of any segment
and are managed on a Group basis.
Interest revenue
Foreign currency gains/(losses)
Corporate costs
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 95 -
NOTE 23 – SEGMENT INFORMATION - continued
Operating Segments
Sicily
Channel
$
Romania
$
Austria
(Production)
$
Total
Operations
$
Year ended 31 December 2024
Revenue and income
-
-
10,676,046
10,676,046
Total segment revenue
10,676,046
Result
Segment result after tax
(55,501)
(267,260)
(5,321,839)
(5,644,600)
Reconciliation of segment profit after tax to net loss
after tax:
Unallocated revenue and income
186,680
Foreign currency gains/(losses)
(346,700)
Unallocated expenditure
(2,221,746)
Net loss after tax
(8,026,366)
Depreciation, amortisation and impairment included in
segment result
-
-
2,786,997
2,786,997
Assets
Segment assets
22,536
9,695,111
35,024,068
44,741,715
Reconciliation of segment assets:
Unallocated cash
6,387,965
Other
143,124
Total assets
51,272,804
Liabilities
Segment liabilities
(3,838)
(1,018,204)
(24,840,262)
(25,862,304)
Reconciliation of segment liabilities:
Unallocated liabilities
(2,672,698)
Total liabilities
(28,535,002)
Capital expenditure for the year (net of partner
contributions)
Segment capital expenditure – oil and gas assets
-
85,397
14,095,285
14,180,682
Reconciliation of capital expenditure:
Unallocated additions
-
Total capital expenditure
14,180,682
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 96 -
NOTE 23 – SEGMENT INFORMATION - continued
Operating Segments
Sicily
Channel
$
Romania
$
Austria
(Production)
$
Total
Operations
$
Year ended 31 December 2023
Revenue and income
-
-
13,178,208
13,178,208
Total segment revenue
13,178,208
Result
Segment result after tax
(45,552)
(204,207)
(1,441,731)
(1,691,490)
Reconciliation of segment profit after tax to net loss
after tax:
Unallocated revenue and income
3,760
Foreign currency gains/(losses)
(84,892)
Unallocated expenditure
(2,437,093)
Net loss after tax
(4,209,715)
Depreciation, amortisation and impairment included in
segment result
-
-
2,689,510
2,689,510
Assets
Segment assets
34,075
9,247,218
27,994,830
37,276,123
Reconciliation of segment assets:
Unallocated cash
5,207,126
Other
151,903
Total assets
42,635,152
Liabilities
Segment liabilities
(8,232)
(1,254,382)
(23,314,000)
(24,576,614)
Reconciliation of segment liabilities:
Unallocated liabilities
(2,317,013)
Total liabilities
(26,893,627)
Capital expenditure for the year (net of partner
contributions)
Segment capital expenditure – oil and gas assets
-
-
4,704,621
4,704,621
Reconciliation of capital expenditure:
Unallocated additions
-
Total capital expenditure
4,704,621
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 97 -
NOTE 24 – FINANCIAL RISK MANAGEMENT
The Group is exposed to market risk (commodity, currency and interest rate risks), credit risk and liquidity risk. The Group’s
overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the financial performance of the Group. The Group uses different methods to measure different types
of risk to which it is exposed. ADX’ Board of Directors (Board) is responsible for approving ADX’s policies on risk oversight
and management and ensuring management has developed and implemented effective risk management and internal
controls. Risk management is carried out by the senior executives under these policies which have been approved by the
Board. Management identifies, evaluates and, if necessary, hedges financial risks.
Commodity price risk
During the year the Group continued generating revenue from its fields in Austria. With this oil and gas production and
revenue, the group is exposed to the Brent Benchmark crude oil price and European gas price fluctuations. Exposure to oil
and gas price risk is measured by monitoring the Group’s forecast financial position and cash flows with various
assumptions. This analysis is regularly performed. Commodity prices’ hedging may be undertaken where the Board of
Directors determines that a hedging strategy is appropriate to mitigate potential periods of adverse movements in
commodity prices and protect forward cash flows to meet commitments. This will be balanced against the desire to expose
shareholders to oil price upside and the reliability of production forecasts.
As at 31 December 2024, no derivative financial instruments were in place.
The hedging program is designed to provide certainty of cash flows during a period of expected ongoing volatility.
Currency risk
The Group’s source currency for the majority of costs is in Euro (EUR). Operating revenue is invoiced in EUR but is indexed
to Dated Brent price which is denominated in United States Dollar (USD). Currency risk arises where the value of a financial
instrument or monetary item fluctuates due to changes in foreign currency exchange rates. The exposure to currency risk
is measured using sensitivity analysis and cash flow forecasting.
The Board has formed the view that in the ordinary course of business it would not be beneficial for the Group to purchase
forward contracts or other derivative financial instruments to hedge any currency risk. Currency risk for operating revenue
is hedged via hedging of the commodity as necessary (see section ‘Commodity price risk’).
During the year the company undertook capital raising activities via the issue of new shares on the ASX. These capital
raisings are priced and received in AUD. Over the time period of a capital raising there is some short-term exposure to
movements in the AUD to EUR exchange rates as part of the funds are used in Europe. At year end, management has
assessed that the entity’s exposure to foreign exchange movements is immaterial due to revenues and costs primarily
in EUR and therefore no further analysis is provided. The Group manages its foreign exchange risk by constantly
reviewing its exposure to commitments payable in foreign currency and ensuring appropriate cash balances are
maintained in EUR and AUD, to meet current operational commitments.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 98 -
NOTE 24 – FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES - continued
Interest rate risk
At balance date the Group’s exposure to market risk for changes in interest rates relates primarily to the Company’s
borrowings. The Group constantly analyses its exposure to interest rates, with consideration given to potential renewal of
existing positions, the mix of fixed and variable interest rates and the period to which deposits may be fixed.
Given the very low interest rates for variable borrowings, the interest rate risk is considered immaterial.
31 December
2024
$
31 December
2023
$
Borrowings - fixed rate
1,890,571
1,500,000
Borrowings – variable
-
609,394
Total
1,890,571
2,109,394
Liquidity risk
Liquidity risk is the risk that Group will encounter difficulty in meeting obligations associated with financial liabilities that
are settled by delivering cash or another financial asset. The Group manages liquidity risk by continuously monitoring
forecast and actual cash flows with scenario analysis. As at reporting date the Group had sufficient cash reserves to meet
its current requirements.
The contractual maturity analysis of payables as at year end are:
Total
$
Less than 1 Year
$
Between 1-5
Years
$
31 December 2024
Trade and other payables
4,869,630
4,869,630
-
Borrowings
1,890,571
1,890,571
-
Total
6,760,201
6,760,201
-
31 December 2023
Trade and other payables
5,136,865
5,136,865
-
Borrowings
2,109,394
609,394
1,500,000
Total
7,246,259
5,746,259
1,500,000
Credit risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the
Group. The Group has adopted the policy of dealing with creditworthy counterparties and obtaining sufficient collateral or
other security where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group measures
credit risk on a fair value basis.
Significant cash deposits are with institutions with a minimum credit rating of A+ (or equivalent) as determined by a
reputable credit rating agency e.g. Standard & Poor.
The Group has only one customer for operating revenue being a significant company in Austria. Revenue is received
monthly and hence the credit risk deemed very low. The customer is Austria’s largest energy storage company, and one of
Europe’s leading gas storage facility operators
The Group does not have any other significant credit risk exposure to a single counterparty or any group of counterparties
having similar characteristics.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 99 -
NOTE 25 -PARTNERSHIPS – ANSHOF EOCENE OIL PROJECT
Under ADX’s upper Austria AGS licence, ADX must retain 100% ownership of the licence and is required to act without
restrictions from partners. ADX is permitted to establish a partnership with other parties to allow an economic participation
within the licence area.
ADX has an Anshof Partnership with MND Austria a.s. (MND) and Xstate Resources Limited (ASX: XST) (Xstate). ADX is the
operator and holds an 50% economic interest in the Anshof Discovery Area, with MND and Xstate holding a 20% and 30%
economic interest respectively, other than the Anshof-2A well where ADX holds a 60% interest and MND has a 40%
economic interest. For the period prior to 8 September 2023, ADX held 80% and Xstate held 20%.
As ADX provides the Partners with an interest in the operating result of Anshof, ADX recognises 100% of all sales revenue
and 100% of expenses associated with the operations and also recognises an expense representing the Partners share of
operating results.
Consolidated
31 December
2024
31 December
2023
$
$
Partner Share of Operations (included as cost of goods sold)
Partners share of Anshof operations profit/(loss) – refer to note 2
78,585
89,427
Operations – Anshof
Sales revenue
3,044,672
3,433,391
Cost of Goods Sold (excluding depreciation and amortisation)
(2,919,359)
(2,851,270)
125,313
582,121
Profit allocated:
ADX VIE GmbH
46,728
492,694
MND Austria a.s.
43,956
(26,997)
Xstate Resources Limited
34,629
116,424
125,313
582,121
NOTE 26 - SUBSEQUENT EVENTS
Equity Issues in Lieu of Remuneration
On 6 February 2025, ADX issued the following shares and options. These amounts were accrued in the 31 December 2024
financial statements:
a.
287,914 shares issued pursuant to ADX’ Directors’ Share Plan, approved by Shareholders on 22 May 2024. The shares
were issued to directors in consideration of remuneration elected to be paid in shares for the quarter ended 31
December 2024 ($19,002).
b.
72,727 shares issued to ADX’s Company Secretaries and consultants in consideration of remuneration elected to be
paid in shares for the quarter ended 31 December 2024 ($4,800).
c.
345,880 Options granted to Directors Ian Tchacos and Paul Fink, as approved by Shareholders on 22 May 2024. The
options were granted in consideration of consultancy fees remuneration elected to be paid in options for the quarter
ended 31 December 2024 (value $22,828). The options have a nil exercise price and expire on 31 January 2028.
ADX ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
__________________________________________________________________________________________________
- 100 -
NOTE 26 - SUBSEQUENT EVENTS - continued
Loan Note Variations
On 10 January 2025, ADX announced that it had entered into deeds of variation with the Loan Note holders in relation to
25 Loan Notes of A$ 50,000 each totalling A$ 1.25 million (Loan Notes).
Five (5) Loan Notes of A$ 50,000 each (A$ 250,000 in aggregate) were repaid on the original repayment date of 11 January
2025.
The variation to the Loan Note terms provides funding flexibility to ADX allowing it to utilise its current cash to fund its
planned asset development program.
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:
Loan Note A
Loan Note B
Total Loan Notes
Face Value of Each Loan Note
$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
with an Exercise Price of $0.055,
expiring 31 March 2026 – Per
Loan Note
500,000
per Loan Note
(2,000,000 in Total)
1,000,000
per Loan Note
(21,000,000 in Total)
23,000,000
in Total
There are no other matters or circumstances that have arisen since 31 December 2024 that have or may significantly affect
the operations, results, or state of affairs of the Group in future years.
ADX ENERGY LTD
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
31 DECEMBER 2024
__________________________________________________________________________________________________
- 101 -
Name of Entity
Entity Type
Country of
Incorporation
% Ownership
Tax Residency
ADX Energy Ltd
Body Corporate
Australia
Parent
Australia
Bull Petroleum Pty Ltd
Body Corporate
Australia
100%
Australia
AuDAX Energy Srl
Body Corporate
Italy
100%
Italy
Terra Energy Limited
Body Corporate
United Kingdom
100%
United Kingdom
ADX VIE GmbH
Body Corporate
Austria
100%
Austria
Kathari Energia Limited
Body Corporate
United Kingdom
100%
United Kingdom
Kathari Energia GmbH
Body Corporate
Austria
100%
Austria
Danube Petroleum Limited
Body Corporate
United Kingdom
49.18%
United Kingdom
ADX Energy Panonia Srl
Body Corporate
Romania
100% owned by Danube
Petroleum Limited
Romania
In.Corp Audit & Assurance Pty Ltd
ABN 14 129 769 151
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 team@incorpadvisory.au
W incorpadvisory.au
To the members of ADX Energy Ltd
Opinion
We have audited the financial report of ADX Energy Ltd (“the
Company”) and its controlled entities (“the Group”) which comprises the
consolidated statement of financial position as at 31 December 2024,
the consolidated statement of profit or loss and other comprehensive
income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, notes to
the
financial
statements,
including
material
accounting
policy
information, the consolidated entity disclosure statement and the
directors’ declaration.
In our opinion, the accompanying financial report of the Group, is in
accordance with the Corporations Act 2001, including:
a)
giving a true and fair view of the group’s financial position as at 31
December 2024 and of its financial performance for the year then
ended; and
b)
complying
with
Australian
Accounting
Standards
and
the
Corporations Regulations 2001.
ADX ENERGY LTD
INDEPENDENT AUDITOR’S REPORT
Basis for Opinion
We conducted our
audit in accordance with Australian Auditing
Standards. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in
accordance
with
the
auditor
independence
requirements
of
the
Corporations Act 2001 and the ethical requirements of the Accounting
Professional & Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (including Independence Standards) (“the
Code”) that are relevant to our audit of the financial report in Australia.
We have also fulfilled our other ethical responsibilities in accordance
with the Code.
We
confirm
that
the
independence
declaration
required
by
the
Corporations Act 2001, which has been given to the directors of the
Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Liability limited by a scheme approved under Professional Standards Legislation
102
How our Audit Addressed the Key Audit Matter
Key Audit Matter – Oil and Gas Properties.
Refer to Note 9 to the financial statements
Our
procedures
over
oil
and
gas
properties
included but were not limited to the following:
•
We verified a sample of additions to supporting
documentation and/or invoices;
•
We reviewed management’s assessment for
impairment;
•
We reviewed the terms and conditions of the
partnership agreements and the associated
accounting for partner contributions under these
agreements; and
•
We
assessed
the
appropriateness
of
the
disclosures included in the financial report.
The Group’s principal assets are oil and gas
production plant and equipment with a carrying
value of $33,570,402 as at 31 December 2024.
The carrying value of these assets is considered
to be a key audit matter given they represent
approximately 65% of the total assets of the
Group.
How our Audit Addressed the Key Audit Matter
Key Audit Matter – Revenue. Refer to Note 2
to the financial statements
Our procedures over revenue included but were
not limited to the following:
•
We documented and assessed the processes
and controls in place to recognize revenue;
•
We verified a sample of oil and gas sales
revenue transactions and associated receipts to
determine they were accurately accounted for;
•
We reviewed the accounting policy for revenue
recognition and ensured it was in accordance
with AASB 15 “Revenue”; and
•
We
assessed
the
appropriateness
of
the
revenue disclosures included in the financial
report.
The Group generated revenue of $10,676,046
predominately from the sale of oil and gas.
Revenue recognition is considered to be a key
audit matter given the significance of revenue to
the group’s results and performance.
ADX ENERGY LTD
INDEPENDENT AUDITOR’S REPORT (continued)
Emphasis of Matter – Material Uncertainty Related to Going Concern
We draw attention to Note 1 in the financial report, which indicates that the Group incurred a net loss of
$8,026,366 and a net cash outflow from operating activities of $1,766,069 during the year ended 31
December 2024. As stated in Note 1, these events or conditions along with other matters as set forth in
Note 1 indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability
to continue as a going concern and therefore the Group may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
103
Information Other than the Financial Report and Auditor’s Report Thereon
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 31 December 2024, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Key Audit Matters (continued)
How our Audit Addressed the Key Audit
Matter
Key
Audit
Matter
–
Asset
Retirement
Obligations. Refer to Note 14 to the financial
statements
Our
procedures
over
the
asset
retirement
obligation provisions included but were not limited
to the following:
•
We reviewed management’s estimate, the
useful
lives
and
valuation
of
the
assets
forming part of the asset retirement obligation;
•
We discussed with management as to the
regulatory
compliance
surrounding
their
retirement obligations;
•
We reviewed the compliance of the accounting
treatment of the asset retirement obligation in
accordance
with
AASB
137
Provisions,
Contingent Liabilities and Contingent Assets,
and
•
We
assessed
the
appropriateness
of
the
disclosures included in the financial report.
The Group has a significant asset retirement
obligation
provisions
for
the
Austrian
and
Romanian oil and gas properties.
These provisions are considered to be a key
audit matter given they are subject to a significant
level of judgement and are material in the context
of the financial statements as a whole.
ADX ENERGY LTD
INDEPENDENT AUDITOR’S REPORT (continued)
104
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar2_2020.pdf. This description forms part of our
auditor’s report.
Responsibilities of the Directors for the Financial Report
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the director either intends to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
ADX ENERGY LTD
INDEPENDENT AUDITOR’S REPORT (continued)
105
ii.
the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
for such internal control as the director determine is necessary to enable the preparation of:
i.
the financial report (other than the consolidated entity disclosure statement) that gives a true and
fair view and is free from material misstatement, whether due to fraud or error; and
b)
the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
a)
the financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001; and
The directors of the Company are responsible for the preparation of:
Responsibilities for the Remuneration Report
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001.
Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
In.Corp Audit & Assurance Pty Ltd
Graham Webb
Director
31 March 2025
ADX ENERGY LTD
INDEPENDENT AUDITOR’S REPORT (continued)
REPORT ON THE REMUNERATION REPORT
Report on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended
31 December 2024.
106
In our opinion the remuneration report of ADX Energy Ltd for the year ended 31 December 2024
complies with section 300A of the Corporations Act 2001.
ADX ENERGY LTD
ADDITIONAL SHAREHOLDER INFORMATION
__________________________________________________________________________________
- 107 -
Information as at 25 March 2025
a) Substantial Shareholders (who have lodged notices with ADX Energy Ltd)
Name
Number of Shares Disclosed in Substantial Holder Notice
Mitsubishi UFJ Financial Group, Inc.
31,230,240
Morgan Stanley and subsidiaries
31,230,240
b) Shareholder Distribution Schedule
Size of Holding
Number of
Shareholders
% of Shares
Number of
Quoted
Option
Holders
% of Quoted
Options
1 -
1,000
104
0.01%
-
-
1,001 -
5,000
134
0.08%
-
-
5,001 -
10,000
391
0.57%
5
0.07%
10,001 -
100,000
924
6.27%
37
3.62%
100,001 and over
457
93.07%
59
96.31%
Total
2,010
100%
101
100%
Number of shareholders holding
less than a marketable parcel
976
c) Voting Rights
Subject to any rights or restrictions for the time being attached to any class or classes of Shares, at meetings of
Shareholders or classes of Shareholders:
(i)
each Shareholder entitled to vote may vote in person or by proxy or attorney, Representative;
(ii)
on a show of hands, every person present who is a Shareholder or a proxy, attorney or Representative of a
Shareholder has one vote; and
(i)
on a poll every member entitled to vote and present in person or by proxy or attorney or representative duly
authorised shall, in respect of each fully paid Share held by him, or in respect of which he is appointed a
proxy, attorney or Representative, have one vote for the Share, but in respect of partly paid Shares, shall
have such number of votes being equivalent to the proportion which the amount paid (not credited) is of
the total amounts paid and payable in respect of those Shares (excluding amounts credited).
There are no voting rights for Option holders or Performance Rights.
ADX ENERGY LTD
ADDITIONAL SHAREHOLDER INFORMATION
__________________________________________________________________________________
- 108 -
d) Twenty largest Shareholders:
Name
Number of
Ordinary
Shares
% of
Issued
Capital
1.
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
95,150,509
16.54
2.
CITICORP NOMINEES PTY LIMITED
53,470,303
9.30
3.
MORGAN STANLEY AUSTRALIA SECURITIES (NOMINEE) PTY
LIMITED
31,230,238
5.43
4.
BNP PARIBAS NOMS PTY LTD
26,957,306
4.69
5.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
15,380,527
2.67
6.
MR WILLIAM CLARK PHELPS
14,285,715
2.48
7.
MR PAUL FINK
11,546,600
2.01
8.
JETOSEA PTY LTD
10,751,846
1.87
9.
EQUITY TRUSTEES LIMITED
8,357,143
1.45
10.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
8,088,826
1.41
11.
BNP PARIBAS NOMINEES PTY LTD
7,386,566
1.28
12.
IRONSIDE PTY LTD
5,997,317
1.04
13.
EONIA PTY LTD
5,289,901
0.92
14.
MR TIMOTHY FRANCIS CLIVE MCDONNELL
5,288,888
0.92
15.
NGX COMMODITIES LTD
4,634,331
0.81
16.
ASHLITE PTY LTD
4,500,000
0.78
17.
MR BRIAN THOMAS CLAYTON + MRS JANET CLAYTON
4,133,334
0.72
18.
WARROORAH PTY LTD
4,066,416
0.71
19.
MR JAMIE RUSSELL STUART + MRS TANYA CARLENE STUART
4,000,000
0.70
20.
CITICORP NOMINEES PTY LIMITED
3,820,955
0.66
324,336,721
56.39
Remaining Holders Balance
250,852,590
Shares on issue
575,189,311
ADX ENERGY LTD
ADDITIONAL SHAREHOLDER INFORMATION
__________________________________________________________________________________
- 109 -
e) Twenty largest Quoted Optionholders:
Name
Number of
Quoted
Options
% of
Quoted
Options
1.
MORGAN STANLEY AUSTRALIA SECURITIES (NOMINEE) PTY
LIMITED
15,497,618
24.11
2.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA
8,311,905
12.93
3.
MR WILLIAM CLARK PHELPS
7,142,858
11.11
4.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
4,390,476
6.83
5.
CITICORP NOMINEES PTY LIMITED
2,773,811
4.31
6.
MR COLIN MILLS + MISS TRACY MILLS
2,500,000
3.89
7.
MR DOMENIC MARINO
1,766,640
2.75
8.
EQUITY TRUSTEES LIMITED
1,428,572
2.22
9.
TREASURY SERVICES GROUP PTY LTD
1,190,477
1.85
10.
MR COLIN MILLS
1,133,000
1.76
11.
BNP PARIBAS NOMINEES PTY LTD BARCLAYS
952,382
1.48
12.
IRONSIDE PTY LTD
952,382
1.48
13.
WAVELL BROCKMAN PTY LTD
855,121
1.33
14.
BILPIN NOMINEES PTY LTD
785,715
1.22
15.
JETOSEA PTY LTD
766,667
1.19
16.
MR PETER IRONSIDE
757,093
1.18
17.
HARDY ROAD INVESTMENTS PTY LTD
546,429
0.85
18.
AUSVAAL PTY LTD
500,000
0.78
19.
MR FARIS SALIM CASSIM
500,000
0.78
20.
IRONSIDE PTY LTD
476,191
0.75
53,227,337
82.80
Remaining Holders Balance
11,058,394
Quoted options on issue
64,285,731
ADX ENERGY LTD
ADDITIONAL SHAREHOLDER INFORMATION
__________________________________________________________________________________
- 110 -
f)
Unlisted Options (Holders of more than 20%):
Number
Exercise
Price
Expiry Date
Holders of >20%
Unlisted Options
6,350,000
17 cents
30/04/2025
Employee Incentive Plan
Unlisted Options
245,625
Nil cents
31/07/2025
Mr Ian Tchacos (100%)
Unlisted Options
500,000
17 cents
31/03/2026
Mr John Begg (100%)
Unlisted Options
2,000,000
5 cents
31/03/2026
Chippenham Superannuation Pty Ltd
(25%),
Ironside Pty Ltd
(50%),
Mr Gary John Jeffery & Mrs Jane Elizabeth
Jeffery (25%)
Unlisted Options
23,000,000
5.5 cents
31/03/2026
Jetosea Pty Ltd (43.5%), remainder varies
holders < 20%
Unlisted Options
329,465
Nil cents
31/10/2025
Mr Ian Tchacos (100%)
Unlisted Options
185,796
Nil cents
31/01/2026
Mr Ian Tchacos (100%)
Unlisted Options
311,719
Nil cents
31/05/2026
Mr Ian Tchacos (100%)
Unlisted Options
269,532
Nil cents
31/07/2026
Mr Ian Tchacos (100%)
Unlisted Options
380,358
Nil cents
31/10/2026
Mr Ian Tchacos (100%)
Unlisted Options
283,929
Nil cents
31/01/2027
Mr Ian Tchacos (100%)
Unlisted Options
275,893
Nil cents
31/05/2027
Mr Ian Tchacos (100%)
Unlisted Options
300,000
Nil cents
31/07/2027
Mr Ian Tchacos (100%)
Unlisted Options
218,750
Nil cents
31/10/2027
Mr Ian Tchacos (100%)
Unlisted Options
131,425
Nil cents
31/01/2028
Mr Ian Tchacos (100%)
Unlisted Options
89,003
Nil cents
31/05/2028
Mr Ian Tchacos (100%)
Unlisted Options
196,514
Nil cents
31/07/2028
Mr Ian Tchacos (100%)
Unlisted Options
167,079
Nil cents
31/10/2028
Mr Ian Tchacos (100%)
Unlisted Options
345,880
Nil cents
31/01/2029
Mr Ian Tchacos (62%) and Mr Paul Fink
(38%)
Total Options
35,580,968
ADX ENERGY LTD
TENEMENT / PERMIT SCHEDULE
__________________________________________________________________________________
- 111 -
Permit
% held
Onshore Austria, Zistersdorf and Gaiselberg Production Licence
100%
Upper Austria ADX-AT-I AGS Licence (a)
100%
Upper Austria ADX-AT-II AGS Licence (b)
100%
Onshore Romania, Parta (c)
100%
Onshore Romania, Iecea Mare Production Licence (c)
100%
Offshore Italy, d363C.R-.AX (d)
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 Lichtenberg-1 well (refer ASX release 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:
o
ADX holds a 75% interest in the Welchau Area of the ADX-AT-II licence; and
o
ADX holds a 50% interest in Anshof Field Area of the ADX-AT-II licence other than the Anshof-2A well where ADX
holds a 60% 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: ADX has been offered the Permit by the Italian Designated Authority and ADX has accepted the Permit in January
2025. Formal award is expected during the first quarter of 2025.