ADX Energy (ASX: ADX): High production at Z&G. Low risk exploration drilling in Austria to start in 4Q25/1Q26
• 2Q25 net production of 303 boe/d was higher than our expectations of ~270 boe/d following a 5 well intervention programme at the Zisterdorf and Gaiselberg fields in the Vienna Basin. The programme included (1) repair of subsurface equipment, (2) clean out of a down hole sand control (3) perforation of a new oil production zone in a well.• Despite a drop in oil price revenue during June, adjusted 2Q25 sales were A$3.5 mm. This represents an increase of 26%.
• A farm-in partner for the GOLD cluster of shallow gas prospects in Austria (combined P50 prospective resources of 12.1 bcf) could be announced in late 3Q/early 4Q25. Drilling following farm out is expected to start in late 2025 or early 2026 on a multi well program.
• ADX is also maturing several low-risk exploration and appraisal prospects in close proximity to the Anshof field.
• In Italy, the final award of the d 363C.R-.AX Exploration Permit is expected during August. This will open a new area of focus for the company with large gas prospects identified on 2D seismic and historic wells targeting deeper oil.
• Pending further visibility on Welchau, we have not changed our target price of A$0.30 per share.
Valuation
ADX held ~A$4.8 mm in cash at the end of June. This includes only two months of sales. Adding the payment of A$0.7 mm for the third month received on 1 July suggests an adjusted cash position at the end of the quarter in line with our expectations. Our aggregate unrisked NAV for ADX’s net interest (assuming 50% WI post farm-out) in the shallow prospects is ~A$0.11 per share, representing 3.5x the current share price. Our ReNAV is ~A$0.27 per share.
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.
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