ADX Energy (ASX: ADX): Adding four low risk drill-ready shallow gas prospects to start drilling by YE25
• ADX has now matured 13 shallow gas prospects across the ADX-AT-I and ADX-AT-II licence areas in Austria. The play is proven, supported by historical discoveries within the basin. Nearby historical discoveries in the area have produced 220 bcf to date.• The prospects benefit from AVO anomalies, enhancing confidence in their potential. Four of these prospects, with a best-case recoverable resource estimate of 16.1 bcf, are drill-ready. ADX holds a 100% interest and is currently in discussions with potential partners, aiming to commence drilling in 4Q25.
• The first drilling cluster is expected to be the GOLD cluster, comprising the GOLD, ZAUN, and GRAB prospects, with ~11 bcf of aggregate prospective resources. These prospects lie at depths of 850–1,150 metres and carry very low geological risk (70% chance of success for GOLD). Typical wells are expected to achieve initial production rates of 10–15 mmcf/d and can be quickly brought online due to their proximity to open-access pipelines. IRR can reach 49%.
• Pending further progress at Welchau, we have not changed our target price of A$0.30 per share.
What next?
ADX could provide prospective resources estimates for the Sicily Channel Gas Exploration Permit in Italy around mid-2025. Securing a farm-in partner to drill the shallow gas cluster in Austria could be a rerating event.
valuation
Our unrisked NAV for the GOLD cluster (assuming the company sells a 40% interest in return for a funding) is A$0.09/sh. This represents 3x the current share price. We are not carrying any value for Italy yet.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.