ADX Energy – Iecea Mica-1 Well – Drilling Update No 4. “Multiple Hydrocarbon Zones Intersected”

• Well has reached total depth for the 8½” hole at 2335 meters measured depth (“MD”) and electric line logging has just been completed.
• A number of potential Pannonian reservoirs (“PA”, Pliocene to uppermost Miocene) have been intersected and logged with observed hydrocarbon shows including;
• A 2 meter sandstone at a depth of approximately 1863 meters MD with (C1) gas shows at the PA III stratigraphic interval
• A 5 meter sandstone at a depth of 2033 meters MD with (C1) gas shows as expected at the PA IV stratigraphic level (the zone that was successfully tested in the historic well)
• A stratified sandstone and siltstone section from 2140 to 2163 meters MD (23 meters) including a number of potential reservoirs with heavier gas shows (C1, C2 & C3) in the PA V interval (Note: Offset production well has produced oil from this interval)
• A preliminary petrophysical analysis is expected to be completed and subsequently reported over the coming days however the results of the PA IV sand and the PA V sand are encouraging based on drilling and raw wireline log data assessed to date.
• Current operations – running a wiper trip and preparation to run 7” casing.
• Future operations – run 7” casing, install well head and blow out preventers then commence drilling 6” hole to well total depth.
• The next zone of interest is the so called “blow out” horizon at approximately 2400 meters MD. (Note this interval was not logged in the Iecea Mare-35 historic well).
• The total time to drill and evaluate the well is approximately 29 days after spud.

ADX Energy Ltd (ASX Code: ADX), is pleased to advise that the Iecea Mica-1 (IMIC-1) well, at 6am local Romanian time on the 25th of August 2019, located in the Iecea Mare production license onshore Western Romania has reached the casing depth of 2335 meters MD. Since the last well operations report on the 19th of August 2019 the IMIC-1 well has intersected a number of sandstone reservoir intervals with corresponding gas shows as follows:

• The Pa III stratigraphic interval was intersected at a depth of 1835 meters MD, approximately 3 meters shallower than at the control well Iecea Mare 35. Two significant gas peaks associated with sandstone intervals were encountered. A 2 meter reservoir sandstone at 1863 meters was associated with the most pronounced gas peak.

• The Pa IV section was intersected as predicted around 2033 meters MD and encountered very strong C1 and also some C2 gas shows related to the main Pa IV sandstone reservoir which is seen as a very clean approximately 5 meter thick sand on the MWD GR log. Two more strong gas peaks were encountered at depths of 2053 and 2061 meters MD respectively. They are not associated with clean sandstone reservoirs but silty intervals within an otherwise, predominantly claystone section.

• The Pa V stratigraphic interval was intersected at a depth of 2140 meters MD and is associated with 23 meters ofstrong gas peaks, including higher hydrocarbon composition (C2 & C3). While this section is an alternation of claystone, siltstone and finely laminated sandstones of less than 2-meter thickness, the most pronounced gas shows are associated with the clean sandstone reservoir intervals. A downdip control well at a distance of approximately 2.5 km has produced oil from this interval.

The current 8½” hole TD is within the upper part of the PA VII stratigraphic interval. It is expected that at approximately 2400 meters the well will reach the crest of a significant basement high area which lacks a number of Lower Pannonian reservoirs due to onlap and non-deposition. It is therefore expected that the well will soon thereafter intersect potential Miocene (Sarmatian & Badenian) and fractured basement related reservoir zones in a deeper hydrocarbon system (refer to Well Summary and prospectivity assessment attached to this release). 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’).

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. (Source: adx-energy.com, August 26^th)