ADX Energy Raises A$3.58 Million to Advance Austrian Gas Testing and Sicily Channel Exploration Amid Soaring European Gas Prices

ADX Energy’s Strategic Advantage in Europe’s Gas Market Amid Supply Challenges

ADX Energy Ltd operates oil and gas assets in premier jurisdictions including Austria and the Sicily Channel offshore Italy, with its headquarters at Level 1, 168 Stirling Highway, Nedlands, Western Australia. The timing of this capital raise aligns with record-high European gas prices driven by regional supply shortages, creating a favourable backdrop for expanding gas production. Executive Chairman Ian Tchacos highlighted that Europe faces sustained supply constraints, resulting in record gas prices, positioning ADX Energy to capitalise on increased demand for production growth.

Investor participation in the placement reflects recognition of ADX Energy’s advantageous geographic footprint in European energy markets. The company leverages existing production infrastructure in Austria, notably the 3,000 barrel per day processing facility at the Anshof oil field, enabling swift development of new discoveries. This blend of operational assets and exploration acreage supports the company’s strategy to deliver oil and gas into energy-constrained markets. Both new and existing sophisticated investors have backed the placement, affirming confidence in ADX Energy’s market positioning.

HOCH-1 Shallow Gas Discovery and Multi-Zone Testing Initiative

The HOCH-1 shallow gas discovery in Upper Austria presents a pivotal near-term production growth opportunity. ADX Energy plans to deploy placement proceeds to conduct multi-zone gas testing aimed at delineating the extent and productivity of gas-bearing zones. Follow-up shallow gas drilling will target additional accumulations identified through exploration efforts. These initiatives are considered low-risk, reflecting the company’s positive assessment of geological prospects and development risks in Austria.

Complementing the shallow gas program are ongoing production optimisation efforts at Austrian fields. Executive Chairman Tchacos emphasized the strategic importance of the shallow gas drilling program to materially increase gas output. The timing of HOCH-1 testing and follow-up drilling coincides with market conditions conducive to gas development, positioning ADX Energy to accelerate cash flow generation from these low-risk, near-term projects. These activities form a core part of the company’s immediate growth strategy ahead of advancing higher-impact exploration targets.

Welchau Light Oil and Gas Deepening: A Transformational Prospect

In addition to shallow gas operations, ADX Energy is preparing to deepen the Welchau light oil and gas discovery, identified as a high-impact exploration target. This deepening program aims to test deeper stratigraphic layers potentially containing additional hydrocarbons beneath existing shallow discoveries. The Welchau deepening represents a transformational opportunity with potential to unlock significant resource upside and underpin medium-term production growth from a single asset.

The company’s near-term growth plan in Austria progresses from low-risk shallow gas activities to higher-risk, higher-reward deepening and exploration drilling. This phased approach enables early cash flow generation from HOCH-1 and follow-up shallow drilling while advancing the transformative Welchau deepening project. This dual strategy underpins ADX Energy’s capital deployment framework.

Anshof Oil Field Expansion and Near-Field Exploration

ADX Energy operates the Anshof oil field in Austria, featuring a 3,000 barrel per day processing facility. The company is preparing to introduce farm-in partners to a significant near-field oil exploration target adjacent to Anshof. Executive Chairman Tchacos identified this opportunity as a means to maximise value and expedite development by leveraging existing processing infrastructure. The spare capacity at Anshof offers a competitive advantage for rapid commercialisation of nearby discoveries without substantial additional capital expenditure.

The farm-in partner strategy for near-field exploration is designed to attract external capital and expertise while allowing ADX Energy to retain upside exposure. This approach reduces execution risk and capital demands. The combination of the Anshof processing facility and near-field exploration targets positions the asset as a key production hub supporting multiple streams from shallow and near-field discoveries.

Sicily Channel Gas Exploration and Biogenic Gas Potential

ADX Energy holds a gas exploration permit in the Sicily Channel offshore Italy, marking a strategic entry into a prime European gas exploration area. Placement funds will support continued seismic and well data acquisition to further define what the company describes as exceptional resource potential. The Sicily Channel is well-positioned to supply clean biogenic gas to gas-starved European markets, aligning with regional energy security goals and demand.

Recent validation by an internationally accredited independent reviewer confirms the gas play concept and resource potential in the Sicily Channel. ADX Energy is advancing resource definition and gas play development to move toward potential future development. This exploration program represents a medium- to long-term value creation opportunity distinct from Austria’s near-term production focus.

Placement Details and Pricing Reflect Market Dynamics

The placement issued 179.2 million fully paid ordinary shares at A$0.02 each, raising A$3.58 million before costs. This price represents a 16.7% discount to the last traded price of A$0.024 and a 23% discount to the 5-day VWAP of A$0.026 as of 17 July 2026. The discount aligns with market norms for capital raises and reflects the price at which sophisticated investors committed to the placement.

Each share includes one free-attaching option exercisable at A$0.03, expiring 31 December 2027, pending shareholder approval. The company plans to list these options on the ASX, subject to requirements. This option component offers investors potential upside if the share price exceeds the exercise price before expiry. Board members have committed A$145,000 to the placement, subject to shareholder approval. GBA Capital Pty Ltd, Zerp Capital Pty Ltd, and MST Financial Services Pty Ltd acted as lead managers, overseeing investor engagement and placement execution.

Placement Capacity Utilisation and Settlement Schedule

The placement utilises ADX Energy’s available capacity under ASX Listing Rule 7.1 (83,293,149 shares) and 7.1A (88,681,851 shares), maximising shares issued without requiring a general meeting vote, except for board participation and attaching options. Settlement is set for Wednesday, 29 July 2026, enabling prompt conversion of commitments into equity.

This structure and timing follow standard ASX capital raise practices, with lead managers coordinating syndication and settlement. Using both Listing Rule capacities allows efficient capital raising within regulatory frameworks. The 29 July 2026 settlement date ensures timely fund deployment into approved projects.

Shareholder Approval for Options and Board Participation

ADX Energy will seek shareholder approval for the attaching options and board participation at a general meeting to be held soon after the 22 July 2026 announcement. Issuance of attaching options and board participation totaling A$145,000 depends on shareholder consent, in compliance with ASX Listing Rules governing related party transactions.

While the main share issuance proceeds without shareholder approval, the options and board participation components carry execution risk pending vote outcomes. The timing and results of the shareholder meeting will influence the final capital structure. Investors should monitor updates on meeting results and capital structure finalisation.

Focused Capital Deployment to Drive Growth and Exploration

Executive Chairman Ian Tchacos stated ADX Energy is "well placed in terms of assets and people in tier 1 jurisdictions to deliver oil and gas into one of the world's prime energy markets" and that "our opportunities are only limited by capital." This underscores the company’s view that capital availability is the key constraint to unlocking value in its portfolio and exploration prospects. The A$3.58 million raise aims to remove this barrier, enabling execution of planned activities across Austrian production and exploration assets and the Sicily Channel permit.

ADX Energy’s strategy combines "rapid production growth coupled with the development of its transformation gas exploration portfolio." The HOCH-1 shallow gas testing and follow-up drilling alongside production optimisation represent rapid growth, while Welchau deepening and Sicily Channel exploration form the transformation portfolio. This dual approach generates near-term cash flow from low-risk projects while building a foundation for medium- to long-term production and resource expansion through higher-impact exploration.