ADX Energy Reports 44% Production Growth and A$2.1M Revenue in Q1 2026

Production and Revenue Surge Amid Rising Oil Prices

ADX Energy Ltd (ASX:ADX) reported a sharp 44% rise in average net production to 200 barrels of oil equivalent per day (BOEPD) in the March quarter, up from 192 BOEPD in the previous period. This production lift, combined with a 27% jump in Brent crude prices to US$80.61 per barrel, propelled sales revenue 31% higher to A$2.1 million. The company’s cash position remained stable at just under A$4.9 million, excluding restricted funds.

The Vienna Basin fields in Austria, where ADX operates 100% of production assets, saw steady output gains supported by a recommenced well workover program. The Anshof oil field contributed a 4.8% quarterly production increase, with the Anshof-2A well notably boosting output by 14%. ADX expects further production improvements from ongoing interventions planned through June 2026.

HOCH-1 Well Drilling Underway to Unlock Shallow Gas Potential

In a key operational milestone, ADX spudded the HOCH-1 shallow gas well on 16 April 2026, marking the first of three permitted shallow gas prospects scheduled for drilling this year in Upper Austria. The HOCH prospect holds a mean prospective resource estimate of 8.0 billion cubic feet (BCF), with a high case of 17.3 BCF. The well targets the Miocene Hall formation, known for high productivity gas sands, and aims to deliver initial production rates up to 1,500 barrels of oil equivalent per day. ADX holds a 50% interest and operates the ADX-AT-I licence where HOCH is located.

This drilling campaign is a critical step in ADX’s strategy to meet Europe’s growing gas demand amid tightening supply and elevated prices. The company is also preparing for follow-up drilling at the GOLD and SCHOE shallow gas prospects, both permitted and located nearby.

Welchau-1 Testing Confirms Significant Light Oil and Gas Resources

Testing at the Welchau-1 well resumed in February 2026 after a court cleared previous environmental objections, confirming the presence of moveable hydrocarbons in the shallow Reifling carbonate formation. Live oil and gas were recovered during acid stimulation and swabbing operations, with oil characteristics matching the nearby Steinalm formation. While the original deeper gas condensate target remains untested, the well’s updip structure reveals a potentially significant light oil accumulation with a mean prospective resource of 31 million barrels of oil and 387 BCF of gas.

ADX is advancing plans to deepen the Welchau-1 well by 600 to 700 metres to access the deeper gas-condensate zones, which could substantially increase resource volumes. The company’s recent technical work has upgraded the Welchau anticline resource estimates, reflecting a 3.5-fold increase in potential gas condensate volumes linked to the Molln-1 discovery nearby.

Capital Raising and Loan Note Extension Support Growth Plans

To fund its ambitious drilling and appraisal program, ADX successfully raised A$4.4 million in March through an oversubscribed placement priced at A$0.027 per share. The proceeds will finance ongoing evaluation at Welchau, drilling of HOCH-1, preparations for additional shallow gas wells, seismic data purchases in Italy’s Sicily Channel permit, and the company’s planned dual listing on Oslo Børs’ Euronext Growth market. Attaching options to the placement are subject to shareholder approval at the upcoming AGM.

Additionally, ADX extended the repayment terms on A$750,000 of unsecured loan notes to September 2027, enhancing financial flexibility. The company repaid A$500,000 of loan notes during the quarter while maintaining a strong cash runway of just over two quarters based on current operating cash flows.

Exploration Advances in Italy and Romania

Beyond Austria, ADX is progressing its 100% owned Sicily Channel permit offshore Italy, where it holds prospective gas resources estimated at 619 BCF. The company is acquiring and reprocessing seismic data from ENI to refine prospects and prepare for an independent expert review. The permit’s proximity to existing gas infrastructure and favourable fiscal terms underpin its economic potential.

In Romania, ADX’s 49.2% shareholding in Danube Petroleum faces a legal dispute over the expired Parta exploration licence, with claims of EUR 4.2 million contested by ADX. The Iecea Mare production licence remains unaffected and operational.

Outlook and Strategic Positioning

ADX’s Executive Chairman Ian Tchacos highlighted the company’s multiple growth avenues from its Austrian shallow gas program, Welchau light oil discovery, and Sicily Channel exploration. The HOCH-1 well results, expected in the near term, will be pivotal in confirming reserves potential and guiding subsequent drilling decisions. The company’s dual listing preparations aim to broaden its investor base and enhance liquidity in European markets.

With a diversified portfolio spanning production, appraisal, and exploration across Europe, ADX is positioning itself to capitalise on elevated energy prices and supply tightness. However, the success of drilling programs and resource maturation remains subject to geological and operational uncertainties. The unfolding legal situation in Romania adds a layer of risk to the company’s Eastern European interests.

ADX’s recent capital raise and loan note extension provide a solid financial platform to execute its 2026 work program, which includes further well interventions in the Vienna Basin, drilling of additional shallow gas prospects, and seismic acquisition campaigns in Italy. Market participants will be watching closely for the HOCH-1 well results and updates on the Welchau-1 deepening plans as key catalysts.

Meanwhile, the company’s strategic move to dual list on Oslo Børs’ Euronext Growth market reflects a broader ambition to tap into European capital pools and increase its profile among continental energy investors.

ADX’s drilling at HOCH-1 follows recent rig mobilisation for HOCH-1 well and the commencement of drilling at HOCH-1, underscoring the company’s operational momentum. The company’s capital raise to fund this drilling builds on the earlier A$4.4M placement announcement, highlighting strong investor support for ADX’s growth strategy.