ADX ENERGY LTD — Capital/Financing Update 2007

Dec 16, 2007

ACN 051 212 429

Suite3, L1 610 Murray Street, West Perth WA 6005 PO Box 913 West Perth WA 6872

Telephone: +61 8 9481 3322 Facsimile: +61 8 9481 3330

Drilling Announcement 17 Dec 2007

Jasmine-1 Fourth Exploration Well in PEL-182 Anticipated Spud Date - Wed 19[th] December 2007

Eagle Bay Resources N.L.(EBR) as operator for the PEL-182 Joint Venture in the Cooper / Eromanga Basin, South Australia, advises it has exercised its option to drill one more well using Century Resources Rig-3 for the oil exploration well Jasmine-1 in PEL-182 .

PEL-182 is a large 1745 sq km permit, (Fig 1 & 2)and has over 17 oil & gas leads and prospects mapped for evaluation. Five were selected for drilling to meet the year-1 permit obligation. Three of these have already been drilled, and Jasmine-1 is the fourth, and now the final well of the PEL-182 year 1 commitment wells. Michelle-1, previously the 5[th] well, has been substituted instead for 300 Sq Km of 3D seismic in 2008.

The three earlier year-1 wells already drilled in PEL-182 are as follows: -

Emily-1 Small Oil discovery in Birkhead SS Cased and Suspended. Sarahlyn-1 Dry. Plugged & abandoned Vanessa-1 New Permian Gas Discovery in Toolachee & Epsilon Fms Cased & Suspended

Jasmine-1 is the first well to be drilled in the under explored western half of PEL-182 (Fig 2) It is a stratigraphic pinchout / subcrop play, located on the Cooper Basin margins to evaluate a Patchawarra sand member which had 80% fluorescence at the Darter-1 well, drilled down dip 6km to the south by Santos in 1991. Darter-1 confirms oil has migrated through this region, and should be trapped up dip at the basin edge.

Recent reprocessing of 2D seismic data and sophisticated seismic inversion work has led to a revised new Jasmine-1 location 1.4km NW and up dip at SP 343 on line 86-ZXK. (Fig 3 & 4)

Jasmine Recoverable Oil Resource for this Patchawarra oil sand are (Fig 3) : - 3 MMBO (P90) 11 MMBO (P50) 29 MMBO (P10) (if oil is present)

An oil discovery here can be converted into profitable cash flow quickly at near record high oil prices, initially by trucking, and later by tying an oil pipeline into existing infrastructure.

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Eagle Bay Resources N.L. Operator for PEL-182 JV

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AOC

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Well Details

Well Name : JASMINE 1 Well Classification : Wildcat Country/State : Australia, South Australia Permit : PEL 182 Basin : Cooper Basin Operator : Eagle Bay Resources N.L. (EBR) Licence Holders : • EBR - 37.6% • AuDax - 49.9% • AOC - 5.0% • Dome - 7.5% (Farm-in on AOC)

Location : Shot Point 343 on Seismic Line 86-ZXK (GDA 94 coordinates) Latitude 27[o] 23’ 56.87” South Longitude 139[o ] 53’ 16.44” East Easting 390,051 m Northing 6,968,865 m AMG Zone : Zone 54 Elevation : Ground Level 31.1 m AMSL Kelly Bushing (“KB”) 36.1 m AMSL Spud Date : approx 19[th] December 2007 Drilling Contractor : Century Drilling Limited Drilling Rig No : Century Rig-3 Primary Objectives : Patchawarra Formation – Oil Sand Proposed Total Depth (“TD”) : 2,460 m KB Estimated Operation : 18 days – trouble free dry hole

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Eagle Bay Resources N.L. Operator for PEL-182 JV

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AOC

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Commentary

The PEL-182 permit was awarded to EBR on the 10[th] August 2005 after strong competitive bidding, with a 5 well drilling commitment scheduled for year 1.

Numerous oil and gas fields have been discovered and developed by Santos in and around PEL-182, and a gas pipeline and an oil pipeline run diagonally NE-SW past the SE edge of the permit to the Tirrawarra and Moomba Oil & Gas processing facilities. Logistically, the area is relatively flat laying sand dune and inter-dune territory, and is well serviced by the existing road network. Part of the western portion is in the low lying Cooper Creak flood plain, requiring great care to minimise environmental impact.

Jasmine-1 is located in the SW part of PEL-182, within the Innamincka regional reserve, approximately 103 Km by road north west of Moomba. It is located on the northern flank of the Cooper/Eromanga basin, at the Permian pinchout edge (Blue) and down dip of the Triassic pinchout edge (Green), in an ideal position to capture hydrocarbons migrating up and out of the deeper Patchawarra Trough and Cooper Basin source kitchen, into the overlying Triassic and Jurassic sandstone reservoirs.

The Jasmine oil prospect is a medium/high risk - high reward Permian stratigraphic trap, with recoverable reserves of up to 29 MMBBL (P10) as mapped on 2D seismic of varying vintages and quality. It lays 6.5 km up dip from oil shows at the Santos 1991 Darter-1 exploration well.

Pre-Drill Estimate of Recoverable Oil

	Recoverable Oil	(MMBls)(ifoil is present)	(MMBls)(ifoil is present)
Prospect	**Formation **	P90	P50	P10
Jasmine-1	Patchawarra Fm	3	11	29

Target Formations & Seal

The play for the Jasmine-1 well is the truncation of the Patchawarra ‘oil sand’ by the Daralingie Unconformity as it thins up dip to the northwest and it is truncated and forms an arcuate shaped closure (Fig. 3). The resultant stratigraphic trap is the target of the Jasmine 1 well.

Reservoir

The primary objective of the well is the intra Early Permian Patchawarra Formation sandstones and principally the ‘Patchawarra Oil Sand’ that had 80% oil fluorescence in the down dip Darter-1 well Seal

Vertical seal is provided by the Patchawarra Formation claystones and coals immediately overlying the Oil Sand, and lateral seal is provided by the underlying Patchawarra Formation claystones and coals (Fig.4). The prospect is ideally located with respect to hydrocarbon charge out of the Early Permian, Patchawarra Formation, shales and coals within the Patchawarra Trough, into the interbedded Early Permian reservoir objectives (Figs. 2, 3 & 4).

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Eagle Bay Resources N.L. Operator for PEL-182 JV

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AOC

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Summary of Oil Potential

Should Jasmine-1 prove successful, a Jasmine-2 follow up appraisal well can be drilled immediately at the J-B location down dip at SP 360 on seismic line 86-ZXK. Additional potential also exists at the adjacent East Jasmine prospect (Fig 3), which is of similar size and oil reserves.

Additional potential again also exists at the Michelle-1 stratigraphic prospect, located further North and up dip, targeting the lowermost more massive Patchawarra sand, which also had shows at the Darter -1 well drilled by Santos in 1991.

This Michelle prospect will be better delineated, and carefully depth converted, by a proposed 300 Sq Km 3D seismic survey to be recorded in the 3Q of 2008, to better select an optimum drilling location.

This same 3D survey will also delineate numerous shallower Triassic and Jurassic targets in the Tinchoo, Hutton and Birkhead formations – along the Jurassic Oil Fairway – paralleling the Permian and Triassic pinchout edges on the basin margins ( Blue & Green on Fig 2). A multi well drilling program is planned to drill these targets in late 2008 and into 2009.

Timing of Drilling

Jasmine-1 is anticipated to spud on or about 19[th] December 2007.

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Jim Craib Chairman of the Board

For further information please contact: - Ian Barr Manager Oil & Gas Ph 08 9481 3322 Email: ebr@eaglebayresources.com.au or ianbarr@ eaglebayresources.com.au Web Site: www.eaglebayresources.indigo.net.au

Disclaimer:

The Oil and Gas information on PEL 182 in this report is based on information compiled by Mr Ian R Barr who is a geophysicist of the company and a Competent Person as described in Appendix 5A to the ASX Listing Rules. The report accurately reflects the information compiled by Mr Ian R Barr. Mr Barr based his assessment on work done by Mr Eric Tucker, and ISIS. Mr Eric Tucker, Mr I R Barr, and ISIS, and most other publicly listed oil exploration companies use the words “P50 Reserves” in regard to an undrilled exploration prospect. These words indicate the unrisked oil or gas potential of a prospect if oil or gas is present and do not comply with the definition of reserves as set out in the JORC code which is a reporting code for mineral and coal exploration not for oil and gas exploration.

Statements attributed to 3[rd] parties do not necessarily reflect the opinions of Eagle Bay Resources but are statements by qualified people on the public record and are included for completeness of the company’s obligations under continuous disclosure. The contents of this report are not and should not be used as a substitute for independent professional advice in making an investment decision involving Eagle Bay Resources NL or any of its associated entities. Eagle Bay Resources NL shall not be liable and the reader shall indemnify the company and its Directors for any loss or damage caused by or owing directly or indirectly as a result of the reader’s use of the information contained within the documents that comprise this report, without first accessing professional advice.

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Eagle Bay Resources N.L. Operator for PEL-182 JV

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----- Start of picture text ----- AOCPEL-182----- End of picture text -----

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----- Start of picture text ----- JASMINE-1 PEL-182 COOPER BASIN S.A.----- End of picture text -----

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Eagle Bay Resources N.L. Operator for PEL-182 JV

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AOC

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JASMINE-1 Fourth Well in PEL-182

Reprocessed data Oct 08 2007 Petroseis mapping Patchawarra Oil sand - Time Structure - Jasmine Prospect

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----- Start of picture text ----- Jasmine-1 (J-C)Line ZXK New LocationArea = 21.6 sq km SP 343 86-ZXK Zero edge(15.4 sq km within licence)SP 313 ? Jasmine east Area = 15.8 sq kmSP 343SP 360SP 380JASMINE – 15.4 KM2P10 - 29 MMBO SP 410P50 - 11 MMBOP90 - 3 MMBOMean - 14 MMBO Old location (J-A)(if oil is present) ?Faults are basementcompressional faulting,later reactivatedIncorrect lineJasmine-1 Proposed LocationGeological Cross Section----- End of picture text -----

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----- Start of picture text ----- PEL 182 - Proposed Jasmine-1 14 December 2007 1----- End of picture text -----

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Eagle Bay Resources N.L. Operator for PEL-182 JV

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----- Start of picture text ----- AOCJasmine- 1 J-B J-AJASMINE-1 Time – Depth Drilling Curve2D reprocessed line 86-ZXKPage 7 of 8----- End of picture text -----

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----- Start of picture text ----- Eagle Bay Resources N.L. Operator for PEL-182 JVAOC----- End of picture text -----

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