ADX Energy Ltd. announced that the results of electric line logging operations at the Anshof-3 exploration well located in the ADX-AT-II license in Upper Austria have provided further confirmation of the discovery of an oil zone at the primary Eocene target as well as a potentially productive shallow Miocene gas reservoir. Based on the drilling and electric line logging results from the Anshof-3 well, ADX and its partner Xstate Resources Limited have decided to run casing and complete the well with a view to testing the oil and gas zones prior to potentially placing the well on commercial production following the declaration of a production license. Logging Results: The well was successfully open hole logged with an extensive suite of logs, including the standard "triple combo" suite of tools plus sonic and FMI (formation image) logs.

Several logging runs were necessary due to poor hole conditions to acquire the comprehensive dataset enabling detailed quantification of reservoir parameters. The petrophysical quick look interpretation was completed shortly after the last logging runs and confirmed and further substantiated the preliminary results obtained from drilling data such as oil and gas shows, gas chromatography logs and Gamma Ray logs recorded while drilling. From top to bottom of the well the results can be summarized as follows: Approximately 20m gross gas reservoir zone at around 800 meters of measured depth (MD) within the overthrust Miocene aged imbricates in a finely laminated deep water turbidites clastic section which has an estimated 14m of gas pay.

The finely laminated thin bedded nature of gas sands was further evidenced by FMI logs. It is expected that these sands will contribute significantly to gas flow rates over an anticipated 20m perforation interval. The perforation intervals are currently under review.

The Eocene reservoir section starting around 2302m MD with oil shows across a 6m zone of which between 2.5 to 4m are expected to be productive net pay. This is comparable with nearby production wells. The Cretaceous (Cenomanian) section has been interpreted to contain about 11m of reservoir section with oil saturation in line with the oil shows seen while drilling the well.

Porosity logs (density, neutron and sonic) together with FMI data and cuttings data suggest that this zone at the Anshof-3 drilling location is unlikely to achieve economic oil flow rates. However, it is encouraging that oil presence was proven. Reservoir quality is known to be variable for this section and better reservoir quality may be encountered elsewhere on the large Anshof structure.

Well Testing and Production: Current operations on the Anshof-3 well include preparation to run and cement 7 inch casing from the 9 inch casing shoe at 331m to TD of the well utilising the RED rig. After the completion of casing running and cementing operations the RED rig will be demobilised. ADX has commenced engineering, planning and procurement to complete and test the well using a specialised, smaller and cost-effective workover rig.

Much of the equipment and services required for completion and testing of the Anshof-3 well are available from ADX' operations at the Gaiselberg and Zistersdorf fields. ADX plans to test the deeper Eocene oil target first to confirm reservoir productivity as well as continuity of the reservoirs from pressure response and production performance. The shallower gas zones will subsequently be tested prior to securing a production license and placing the well on commercial production via the nearby RAG E&P oil and gas gathering and processing infrastructure.