ADX ENERGY LTD — Capital/Financing Update 2007

Jul 18, 2007

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Company Announcement

ACN 051 212 429

Suite 3 First Floor, 610 Murray St West Perth Telephone: (08) 9481 3322 PO Box 913 West Perth Western Australia 6872 Facsimile: (08) 9481 3330

Date:	19thJuly 2007
To:	Companies Announcements Office, ASX
Electronic Lodgement:
Subject:	Correction to DST Depths in Yesterday’s Release
	PEL 182 Joint Venture Cooper Basin – Final Drilling Update
	Vanessa-1 New Gas Discovery – Cooper Basin
Number of pages:	4

VANESSA-1 ST-1: PEL-182

A NEW PERMIAN GAS DISCOVERY in the COOPER BASIN S.A.

Eagle Bay Resources advises that Vanessa-1 sidetrack ST-1 has been successfully drilled to a new TD of 3157m, and Schlumberger have successfully wireline logged across the entire new sidetrack interval from TD up – including the Patchawara Fm. (In the original hole, the prospective Patchawarra Fm could not be logged as logging tools were unable to pass deeper then 3027m due to obstruction at a thick coal bed).

Drill stem testing (DST) of the Epsilon and Toolachee formations flowed significant gas to surface, when tool malfunctioned, got irretrievably stuck, and then requiring a new sidetrack be drilled to a new TD for completion as a new Permian Gas Producer.

Halliburton have successfully run and cemented 7” production casing in the sidetrack to TD, and the well is now cased and suspended as a future Permian Gas Producer. Century Rig-3 was released at midnight on Tuesday 17[th] July 2007.

DST GAS PRODUCTION (from 2 of 3 zones) With Corrected DST Intervals

The latest wireline logs in the sidetrack hole have confirmed the presence of the same productive reservoir sands in the Toolachee and Epsilon formations that were earlier Drill Stem Tested in the original hole, which flowed gas to surface at following rates: DST-1A Epsilon Sand 2977 -2980m 5.1 MMscfd on ½” choke at 800 psi FP DST-1B Epsilon Sand 2960 -2963m No Flow-Tool Plugged? (should flow?) DST-1C Toolachee Sand 2929 -2932m 3.9 MMscfd on ½” choke at 525 psi FP No DST’s were run in the deeper Patchawarra Fm, as blocked by coal obstruction.

These are similar intervals as are producing from the Pennie-1 Gas Field, 4 Km updip from Vanessa-1, discovered by Santos in 1995 and on production ever since. The gas gathering line to Moomba passes through the Pennie-1 location.

POTENTIAL FOR PATCHAWARRA GAS

The latest sidetrack logs have finally provided data across the Patchawarra interval, and indicate several additional prospective gas sands in the Patchawarra Fm. These sands will be production tested through casing at a later date and their flow rates determined, when a work over rig is brought on site to develop the well and bring it into production.

ESTIMATED GAS RESOURCE

Preliminary analysis of log and DST data indicates Vanessa-1 appears to have achieved a resource potential in the order of 15 Bcf of gas, based on pre-drill mapping. In conjunction with future cased hole production testing, the operator is currently undertaking detailed geological and geophysical studies to define the reserve potential of the Vanessa gas pool.

Similar follow up prospects also lie close by to the Vanessa-1 location in PEL 182, and in the event of success could be tied into Vanessa-1 to increase proven reserves and gas deliverability to sales point, using nearby infrastructure.

The status of Vanessa-1 ST-1 at 06:00 hrs (CST) on 18[th] July 2007 was: Location: PEL-182 Planned Total Depth: 3200 metres (TVD) Current depth: 3157 metres at TD in Sidetrack. Status: Hole Cased & Suspended with 7” production casing Well is now a Suspended Permian Gas Producer. Operation: Century Rig-3 Released at Midnight 17[th] July 2007

This will be the last Daily ASX release for Vanessa-1

The participants in the joint venture are: Audax Resources Ltd 49.9% Eagle Bay Resources NL 37.6% Dome Petroleum Resources Plc 7.5% Australian Oil Company Ltd 5.0%

BY ORDER OF THE BOARD OF EAGLE BAY RESOURCES N.L.

The information in this report is based on information compiled by Mr Ian Barr who is a geologist 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 Barr.

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----- Start of picture text ----- DAYS FROM SPUD0Surface and Winton Rig move250Drill 12 1/4" hole Vanessa-1 and ST-1500 Planned depth: 3250m TVRTSpud day: 12th May 2007 at 16:30 hrsStart Vanessa-1 ST-1: 7th July 2007at 06:00 hrsDate: 17th July 2007 at 24:00 hrs750 Depth: 3157mOperation: Rig Released at 24:00 hrs on the 17th July 20071000 Wiper trips and circulate while waiting on roadsto re-open. Demobilise crew and wait on roads.Remobilise. Clean out surface hole. Wiper trip.Mackunda POOH. Run and cement 9 5/8" surface casing.N/U and test BOP's1250 NOTE: Time depth curve isfor planning purposes only andAllaru must n o t be used to judge Drill 8 1/2" hole withToolebuc performance. PDC bit and motor.1500Change bit. L/O motorand change BHA.Wallumbilla RIH. Ream tight hole.POOH L/O bit. RIH1750with new bitAttempt toCadna-OwieEmily-1 Actual sidetrack -MurtaMcKinlay 2000 Vanessa-1 - Prognosed Drill 8 1/2" hole with tricone bit no kick-offNamurVanessa-1 ActualWestbourne Vanessa-1 ST1 POOH, change bit,Adori Drill 8 1/2" hole with angle on motor andBirkhead 2250 tricone bit and motor. RIH and kick-offHutton SstKick-off and startPOOH and change Set Kick off plug 2936m sidetrack.Poolowana 2500 bit. RIH. Ream to 2698m. WOC. RIH & dress cement.from 1600m to TD Change BHATinchoo and drillDrill 8 1/2" hole withsidetrack with2750 PDC bit and motor. Drill with tricone insert bitNappamerri bit and motor toPOOH. Test BOP's3163m (TD)RIH with new bit. Change bitToolacheeand drill toEpsilon 3000 Repair mud pump motor. 3157m (TD)Change bit. RIH. Bit balled upParchawarra POOH and change bitBasementTirrawarra 3250 WT. POOH. Run logs -unable to get below 3030m. WT. Relog-no go. Run POOH. Run logs.DST. DST #1A, Gas 4.8 MMCFD 800 psi 1/2". DST #1B No Recovery?. DST RIH. L/O pipe.#1C Gas 2.8 MMCFD 525psi 1/2". Attempt to fish stuck DST tools. Run & cement 7" casing.0 5 10 15 20 25 30 35 40 45 50 55 Rig Release 24:00Hrs 60 65 7017/07/20073500Depth, m RT----- End of picture text -----

EAGLE BAY RESOURCES JV PEL-182 New Gas Discovery at Vanessa-1

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Century Rig3 at Vanessa-1 Gas Discovery

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Vanessa-1 Gas Discovery – Flaring at 4.9 MMCFD at 750 PSI on ½” choke