ADX Energy : Iecea Mica 1 Well Drilling Update No. 3

ASX Release

19 August 2019

Iecea Mica-1 Well - Drilling Update No 3.

Tacrom Future Rig 6 - Iecea Mare Production License, Romania

SUMMARY OF REPORT (DAY 13 since spud date)

@ 6.00 Am 18th of August 2019 Eastern European Summer Time (EESC)

• Well Depth at 1346 metres Total Vertical Depth - hole size 8 ½".
• Operations since last report - run and cement 9 ⅝" casing. Install wellhead and Blow Out Preventer. Drill out casing shoe and drill 8 ½" hole from 808 metres to 1346 meters.
• Current operations - drilling ahead in 8 ½" hole.
• Future operations - drill to 7" casing depth and log well.
• The first target reservoir intersection is expected in approximately 4 days.
• The total time to drill and evaluate the well is approximately 29 days after spud.

REFER TO ATTACHMENT FOR A WELL SUMMARY INCLUDING PROSPECTIVITY ASSESSMENT

ADX Energy Ltd (ASX Code: ADX), is pleased to advise the Iecea Mica-1 well, at 6am local Romanian time on the 18th of August 2019, located in the Iecea Mare production license onshore Western Romania, was drilling ahead at 1346 meters. Operations since the last well operations report on the 11th of August 2019 include running and cementing 9 ⅝" casing to 808 meters, install the 9 ⅝" well head ("WH") and blow out preventer ("BOP"), undertake pressure testing of WH and BOP, drill out of 9 ⅝" casing shoe and drill 8 ½" hole to current depth. Future planned operations are drilling ahead to 7" casing depth at approximately 2300 meters MD and log 8 ½" hole. A wiper trip is planned for Monday.

ADX expects to intersect the first target reservoir (the PA IV gas sand) that was previously tested in the historic well in approximately 4 days. The total well program to drill and evaluate the Iecea Mica-1 well is approximately 29 days after spud.

ADX intends to report operational progress weekly on every Monday.

The Production License is owned 100% by ADX Energy Panonia SRL, a wholly owned subsidiary of Danube Petroleum Limited (Danube). ADX holds a 63% shareholder interest in Danube and is contract Operator for the License and the surrounding Parta Exploration Permit ("Permit") in which the Production License is located. The well is being funded through equity contributions of approximately US$3 million in Danube by 37% shareholder, Reabold Resources PLC ("Reabold').

Picking up 9 ⅝" Casing

Making up and running 9 ⅝" Casing

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Asset Ownership Structure

ADX holds a 63% shareholding in Danube Petroleum Limited (Danube). The remaining shareholding in Danube is held by Reabold Resources Plc. Danube via its' Romanian subsidiary, ADX Panonia, holds a 100% interest in the Parta Exploration license (including a 100% interest in the Parta Appraisal Sole Risk Project) and a 100% interest in the Iecea Mare Production license.

For further details please contact:
Paul Fink	Ian Tchacos
Chief Executive Officer	Executive Chairman
[phone]	[phone]
www.adxenergy.com.au

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IECEA MICA-1 WELL SUMMARY

Key Points

• The upper 2350 metres of Iecea Mica-1(IM-1) appraisal well is effectively a redrill of a historic discovery well drilled in the 1980's.
• IM-1will evaluate multiple gas zones mapped on 3D seismic including a flow tested gas zone and a deeper uncontrolled gas flow in the historic discovery well.
• The Contingent Resources based on an Independent Experts Report of well data with recently acquired 3D seismic is 6.1 Bcf 2C and Prospective Gas Resources are 13 Bcf Best Estimate. Note 1

Prospective 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 well will be deepened to a depth of 2600 meters to evaluate larger untested exploration potential which is a proven Oil play in other fields in the basin ("Basement Play").
• The Best Case Prospective Resource for the deeper exploration upside potential accessible by the well is 16 Bcf (for a gas success case) and 2 MMBBLS (for an oil success case) Note 1.
• If the deeper exploration target is successful it is expected to de-risk several follow up prospects with good upside potential which ADX has identified both on 3D and 2D seismic.
• The well has the additional benefit of being proximal to infrastructure for both gas, oil and electricity enabling low cost, highly profitable commercialisation.

Note 1: Refer to ASX announcement 20/3/2019, ADX confirms that it is not aware of any new information or data that materially affects the information included in that market announcement and that all the material assumptions and technical parameters underpinning the estimates in that market announcement continue to apply and have not materially changed.

Well Overview

ADX together with Danube's 37% shareholder, Reabold have elected IM-1 as the first drilling candidate for the two well Parta Appraisal Program. IM-1 is located in the Iecea Mare Production License which is within the Parta Exploration License in the Panonian Basin, onshore Romania.

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Location Map - Showing IM-1 Well location, Iecea Mare Production License and Parta License

Well Prognosis and Resource Potential

IM-1 is a structural trap targeting multiple (Pliocene to Miocene) pay zones including established appraisal potential from historic wells drilled in the 1980's that were tested but never produced as well as deeper not tested exploration potential defined on recently acquired 3D seismic. The independently assessed contingent and prospective resource potential of IM-1 is summarised in the following table extracted from the ERC Equipoise Independent Report (ERCE). This evaluation excludes deeper exploration potential which can be accessed by the IM-1 well. The first proven, previously flow tested gas reservoir section is the Pa IV sand in the IM-1 well. That zone is expected to be encountered at a depth of ca. 1940 meters

TVDSS.

ERCE Independent Resource Estimates* for Parta Appraisal Program

Recoverable Hydrocarbon Volumes	ERCE Estimates
Prospect		Target	PRMS	P90	P50	P10
		Reservoir	Category	(bscf)	(bscf)	(bscf)
IM-1		Pa IV	Contingent 1	2.0	6.1	16
IM-1		Pa VI	Prospective 2	2.4	4.4	7.3
IM-1		Pa VIII inf.	Prospective	2.7	8.3	21.3
IM-2		PsB4.3	Prospective	5.4	15.6	39.1
IM-2		Pa IV	Contingent	4.8	15.5	43
Total Program		Contingent	6.8	21.6	59.0
Total Program		Prospective	10.5	28.3	67.7

• Refer to ASX announcement 11 July 2018, ADX confirms that it is not aware of any new information or data that materially affects the information included in that market announcement and that all the material assumptions and technical parameters underpinning the estimates in that market announcement continue to apply and have not materially changed.

1. Contingent Resources are those quantities of petroleum estimated, as at a given date, to be potentially recoverable from known accumulations but, for which the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. 1C, 2C, 3C Estimates: in a probabilistic resource size distribution these are the estimates that have a respectively 90% (P90), 50% (P50) and 10% (P10) probability that the quantities actually recovered will be exceeded.

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