ADX ENERGY LTD — Interim / Quarterly Report 2024

Sep 12, 2024

==> picture [209 x 129] intentionally omitted <==

ADX Energy Ltd

ABN 50 009 058 646

H A L F - Y E A R F I N A N C I A L R E P O R T F O R T H E S I X M O N T H S E N D E D 3 0 J U N E 2 0 2 4

A D X E N E R G Y L T D

C O R P O R A T E D I R E C T O R Y

Directors

Ian Tchacos (Executive Chairman) Paul Fink (Executive Director) Edouard Etienvre (Non-Executive Director) John Begg (Non-Executive Director)

Company Secretaries

Peter Ironside Amanda Sparks

Registered and Principal Office

29 Bay Road Claremont, Western Australia 6010 Telephone: +61 8 9381 4266 Web Page: www.adxenergy.com.au Email: admin@adxenergy.com.au

Share Registry

Computershare Investor Services Pty Ltd Level 11 221 St George’s Terrace Perth, Western Australia 6000 Telephone: +61 8 9323 2001 Facsimile: +61 8 9323 2033

Solicitors

Steinepreis Paganin Level 4, Next Building 16 Milligan Street Perth Western Australia 6000

Bankers

Commonwealth Bank of Australia 1254 Hay Street West Perth Western Australia 6005

Stock Exchange Listing

Australian Securities Exchange Ltd 152-158 St Georges Terrace Perth Western Australia 6000 ASX Code: ADX

Auditors

InCorp Audit & Assurance Pty Ltd Suite 11, 4 Ventnor Avenue West Perth, Western Australia 6005

2

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

Your Directors submit their report for the half-year ended 30 June 2024.

DIRECTORS

The names of Directors of the Company during or since the half-year and up to the date of this report are as below. Directors were in office for this entire period unless otherwise stated.

Name

Position

Mr Ian Tchacos Executive Chairman Mr Paul Fink CEO and Executive Director Mr Edouard Etienvre Non-Executive Director Mr John Begg Non-Executive Director – appointed 4 March 2024

Previous Director

Mr Andrew Childs Non-Executive Director – resigned 4 March 2024

REVIEW AND RESULTS OF OPERATIONS

Summary of Financial Performance

A summary of key financial indicators for the Group is set out in the following table:

	Consolidated	Consolidated
	6 Months to	6 Months to
	30 June 2024	30 June 2023
	$	$
Net loss for the half-year after tax attributable to members of the	(3,280,545)	(2,299,049)
Parent Entity
Included in loss for the half-year:
Operating revenue, net of hedging	4,971,267	7,043,474
Cost of sales – operating costs	(4,228,058)	(4,745,087)
Cost of sales – royalties	(210,399)	(472,131)
Cost of sales – depreciation/amortisation	(1,420,558)	(1,200,741)
Cost of sales – partner share of operations	18,177	(108,241)
Restoration expenses – changes in abandonment provision	(281,439)	(648,207)
Dry well costs	-	(387,461)
Exploration expensed	(814,926)	(1,072,561)
Basic (loss) per share (cents) from continuing operations	(0.70)	(0.06) cents
Net cash from/(used in) operating activities	(1,099,791)	(54,980)
Net cash from/(used in) investing activities	(7,968,934)	(1,180,848)
Net cash from/(used in) financing activities	13,594,756	(426,938)

Placement Raising A$ 13.5 million:

In May 2024, ADX advised it had successfully raised A$13.5 million (before costs) from the issue of 128,571,428 new fully paid ordinary shares at an issue price of A$0.105 per share. One (1) free-attaching quoted option was issued for every two (2) Placement Shares. The exercise price of the Placement Options is A$0.15 with an expiry date of 8 May 2026.

Options Exercised

In March 2024, ADX received $ 1.296 million from the exercise of 9,943,337 options at 13 cents each, and 25,000 options at 16 cents each.

3

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

Production (Gross) in Austria was as follows:

Production (Gross) in Austria was as follows:
Crude Oil Sold (Barrels)* Gas Delivered (M3)	6 Months to 30 June 2024 6 Months to 30 June 2023
	38,699 55,541 440,994 703,010
Total Oil Equivalent (BOE)	41,386 59,824
Average Production Rate (BOEPD)	227 331

• Crude oil sold represents total gross production. This includes 8,639 barrels of crude oil sold from the Anshof-3 well for the six months to 30 June 2024 (2023: 20,380). Refer to note 13 of the financial statements for partnership details for the Anshof-3 well.

Operations Review

Activities Overview

ADX Energy Ltd (ASX: ADX, “ADX” or “the Company”) is pleased to provide an update on its activities for the half-year ended 30 June 2024.

==> picture [472 x 265] intentionally omitted <==

Figure 1: The RED E200 drill rig prior to well spud at the Welchau-1 gas condensate discovery well.

ADX has completed a period of successful activity during half year ended 30 June 2024 which has placed your Company in a position to substantially expand its asset base in Austria during the remainder of the year. The announcement of a liquids rich gas discovery at Welchau-1 was a significant milestone for the Company. The discovery will be further evaluated by a very important and highly anticipated testing program during the fourth quarter in 2024.

4

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

==> picture [489 x 116] intentionally omitted <==

Figure 2: Anshof Permanent Production Facility at ADX’ Anshof-3 location

The installation and commissioning of a Permanent Production Facility (PPF) at the Anshof Oil Field with a maximum capacity of 3,000 BPD was successfully completed with the recommencement of production from the Anshof-3 discovery well. The PPF underpins the pathway for further production and cashflow growth from the planned Anshof-2A appraisal well as well as further appraisal and exploration activities in the area

During the period ADX continued to produce stable, long life and low emissions oil and gas from its Gaiselberg and Zistersdorf fields in the Vienna Basin (Vienna Basin Fields). The Vienna Basin Fields production remains an important source of cash flow for the Company as well as providing the opportunity for value adding and complementary energy projects. In the near term such projects are a Solar Park, Green Hydrogen Production and underground Hydrogen Reservoir Storage. These activities are in line with ADX’ ambition to further reduce the carbon footprint of its low emissions conventional oil and gas production operations and develop complementary renewable energy activities. This will be achieved by leveraging the experience and skills of the ADX team, the Company’s operating capability as well as upcycling its existing assets (extensive infrastructure, depleted underground reservoirs and access to land). These initiatives are not only potentially profitable they are an important aspect of our ongoing licence to operate in the European energy environment.

ADX continued to progress the development of its exploration portfolio in Upper Austria with the completion of another important farmin with MND Austria a.s. (MND) to fund an exploration well in the MND Investment Area (MND EIA) in the ADX-AT-I exploration licence. As a result of the MND transaction ADX will drill the Lichtenberg gas prospect in the fourth quarter of 2024 largely funded by MND. Lichtenberg provides another growth opportunity with exciting follow up play potential. In addition to the extensive operational and commercial achievements during the period our team continued permitting, planning and procurement activities to enable a two well appraisal and exploration drilling program (Anshof-2A and Lichtenberg-1) as well as the testing of Welchau-1.

Most importantly the safety of our people including our contractors and the protection of the environment within the communities in which we work is of paramount importance to ADX. The Board of ADX is proud to report that no lost time incidents (LTI) were recorded during the reporting period for safety or environmental causes at ADX’ Vienna Basin Fields, the Anshof Field or the Company’s exploration licences. In addition to meeting the Company’s existing environmental obligations ADX has commenced planning for the precise measurement, quantification, monitoring, reporting, and verification of methane emissions. This will enable ADX to comply with new methane emission regulations which came into force within the European Union (EU) on the 4[th] of August 2024 under a three-year phasing in period.

5

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

==> picture [483 x 294] intentionally omitted <==

Figure 3: Group cash movements during the 6 months ending 30 June 2024

During the reporting period A$5.1 million was generated from production operations and other operating income, A$6.3 million from farmouts (funds have primarily been offset against capitalised costs) and A$14.0 million raised from placements and the exercise of options. Most notable expenditures included A$ 4.1 million utilised on operating costs, corporate and administrative costs of A$1.6 million, A$13.5 million on capital costs and A$0.6 million on exploration expenditures. The 30 June 2024 cash balance of A$12.6 million placed the Company in a strong position to fund its ongoing appraisal and exploration activities.

Highlights for the Half Year Ended 30 June 2024

• Austrian Net Production 204 BOEPD resulting in sales revenue totalling A$4.3 million net to ADX for the 6 month period ended 30 June 2024. Note that production was curtailed by the shut in of Anshof-3 well during first quarter for the installation of the Anshof permanent production facility.

• Completion of MND Farmin to fund drilling of the first gas exploration prospect in the ADX-AT-I exploration licence.

• The Welchau-1 liquids rich gas discovery intersecting 450 metres of shows within the giant 100 km[2] structure.

• The installation and commissioning of a permanent production facility at the Anshof oil field, with a maximum liquids capacity of 3,000 BPD.

• The recommencement of production from the Anshof-3 well into the new Anshof production facility on 3 April 2024 which is producing at an average rate of approximately 110 BOPD (Gross).

• Permitting, planning, procurement and rig contracts in place for the drilling of the Anshof-2A oil appraisal well, the drilling of the Lichtenberg-1 gas exploration well in the ADX-AT-I exploration licence and the testing of the Welchau1 discovery.

• A$13.5 million placement, primarily to institutional investors, and a cash balance for the 6 month period ended 30 June 2024 of A$12.6 million.

6

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

==> picture [481 x 271] intentionally omitted <==

Figure 4: Planned appraisal, exploration and testing activities in Upper Austria during the second half of 2024.

The Company’s second half operational activities during the remainder of 2024 will focus on ADX Upper Austria exploration licenses.

Anshof-2A Oil Appraisal Well

• Drilling of the Anshof-2A side track well commenced in early September 2024. The well will target a bottom hole location up dip from the Anshof-2 well using the RED 202 drilling rig.

• The well is expected to intersect thick Eocene reservoir similar to that encountered by the Anshof-2 well which was approximately 6 times thicker than the producing Anshof-3 discovery well.

• The sidetrack well will take approximately 2 weeks to drill and is planned to be tied in to the recently commissioned Anshof permanent production facility located at the Anshof-3 site.

Lichtenberg-1 Gas Exploration Prospect

• The drilling of the Lichtenberg-1 gas exploration well is planned to commence during October 2024 in the MND Investment Area within the ADX-AT-I licence.

• The prospect will target high productivity gas reservoirs proximal to gas infrastructure with further follow up potential.

• MND will fund the first EUR 4.5 million of the well costs to earn a 50% economic interest in the MND Investment Area.

Welchau-1 Evaluation and Well Testing

• Analysis work on the 450-metre column of condensate rich gas and liquids encountered in the Welchau-1 exploration well was ongoing during the reporting period. A revised resource estimate is expected to be released in late September 2024.

• A submission has been made to the designated environmental authority to undertake production testing operations during the winter period from 1 October 2024 to 31 March 2025.

• A detailed well testing program designed to evaluate the multiple hydrocarbon reservoirs encountered at Welchau -1 is expected to be completed by October 2024 in preparation for well testing operations.

7

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

Looking forward to the second half of 2024, your Company is well positioned in terms of both funding and operational readiness for the abovementioned drilling and testing program. The implications of each element of the work program for the Company are important for the immediate and long-term development of the ADX Austrian energy business.

The drilling Anshof-2A side track well is important for the reserve growth at Anshof and the potential build-up of cashflow from our Austrian operations. The recent installation of the permanent production facility is expected to be a catalyst for further drilling at Anshof as well as multiple nearfield oil exploration prospects which can provide rapid value and cashflow growth.

The drilling of the Lichtenberg-1 gas exploration well will be ADX’ first exploration well in the ADX-AT-I exploration licence. The ADX-AT-I licence is expected to be gas prone, host highly productive reservoirs and is proximal to gas export infrastructure. Success at Lichtenberg is expected to provide a number of follow up prospects that may result in a material and valuable gas resource which would be highly profitable at prevailing European gas prices.

The planned testing of the Welchau-1 liquids rich gas discovery during the fourth quarter of 2024 and the first quarter of 2024 is a significant opportunity for the Company to production test a potentially transformational discovery which was unable to be tested earlier this year due to environmental permitting constraints. ADX is planning a multi zone test over a five to six week period to evaluate the flow characteristics of the Welchau reservoirs. Ongoing success at Welchau would propel the Company to another level in terms of materiality and growth potential at a time when Europe is desperate for sustainably produced domestic hydrocarbons. Welchau is a potential play opener. The discovery of a large column of hydrocarbons at relatively shallow drill depths has significantly enhanced the potential of a follow up prospect with similar depth and structural characteristics that is proximal to Welchau.

The drilling program at Anshof and Lichtenberg is largely funded via Energy Investment Agreements with MND. These agreements not only provide important funding, they reduce the Company’s exposure to downside risk and introduce a financially and technical capable partner into the Company’s assets. The Company’s operational activities are accompanied by the continued development of a rich inventory of oil and gas exploration prospects in Upper Austria which we believe will continue to provide further farmout and drilling opportunities.

In conjunction with our oil and gas exploration, production and development activities, ADX engaged consultants to progress feasibility studies in relation to the viability of a Solar Park for self-consumption of electrical power required at ADX’ Vienna Basin production operations as well as Green Hydrogen Production for third party sales. ADX has also recommenced the evaluation of Hydrogen Storage at its Vienna Basin Oil and Gas Fields for hydrogen which may be generated by ADX or stored commercially for third parties. The Company will provide the results of these studies as well as potential partnership opportunities by the end of 2024.

8

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

ASSET ACTIVITIES SUMMARY

Production Assets, Vienna Basin Fields and Anshof Field – Onshore Austria

ADX is operator and holds a 100% interest in the Vienna Basin production licences. ADX is operator and holds an 50% economic interest in the Anshof-3 production.

The Anshof Oil Field and Vienna Basin Oil and Gas Fields production rate, net to ADX, during the half year averaged approximately 204 BOEPD compared to 271 BOEPD for the six months to December 2023. The 25% decrease was primarily due to the partial sell down of Anshof-3 oil production from 80% economic interest to a 50% economic interest in accordance with the Energy Investment Agreement with MND. The net oil and gas production rate from the Vienna Basin Fields averaged 181 BOEPD and the Anshof-3 well contributed 23 BOPD (net) during the half year compared to 225 BOEPD and 41 BOEPD respectively for the six months to December 2023.

Anshof-3 well production was shut in from the 19[th] of September 2023 when the well reached the regulatory limit of 5,000 tonnes (36,000 Barrels) for production under a long-term test. Anshof-3 production recommenced on the 3[rd] of April 2024 into the newly installed and commissioned PPF.

==> picture [475 x 234] intentionally omitted <==

Figure 5: Showing Anshof and Vienna Basin fields net monthly oil equivalent production and net average daily oil equivalent production rate

Field Revenues and Product Pricing, Vienna Basin Fields and Anshof Field

Oil and gas sales revenues during the six-month period totalled A$4.3 million, net to ADX, a 27% drop compared to the previous six months ending 31 December 2023 when sales revenues totalled A$5.9 million.

The drop in revenue was largely due to lower oil and gas volumes discussed in the previous section and significantly lower realised gas prices. Oil prices remained relatively stable during the reporting period. The average crude Brent sales price during the half year was US$ 84.09 per barrel compared to US$ 85.40 per barrel for the previous six months ending 31 December 2023. Gas prices weakened to EUR 28.16 per MWh during half year compared to EUR 35.75 per MWh for the previous six months ending 31 December 2023. Oil proceeds contributed to 95% of sales during half year compared to 93% for the previous six months ending 31 December 2023.

9

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

==> picture [483 x 248] intentionally omitted <==

Figure 6: Showing Anshof and Vienna Basin fields monthly oil and gas sales revenue

European Methane Emissions Compliance

ADX is committed to achieving and exceeding its environmental obligations, including the reduction of greenhouse gas emissions. Methane is the second-largest contributor to climate change after carbon dioxide (CO2), accounting for about one-third of current global warming. Atmospheric methane levels have risen significantly over the past decade. The firstever European Union (EU) Regulation on methane emissions reduction in the energy sector came into force on 4 August 2024. This Regulation aims to meet the EU’s commitment to the Global Methane Pledge of reducing global methane emissions by at least 30% from 2020 levels by 2030. The Regulation applies to the exploration and production of crude oil, natural gas, and coal within the EU, as well as importers of these fossil fuels into the EU. This ensures equal conditions for all fossil fuel producers supplying the EU’s energy market ensuring domestic production is not disadvantaged by cheaper poorly regulated imports.

The Regulation establishes guidelines for the precise measurement, quantification, monitoring, reporting, and verification of methane emissions in the EU's energy sector. Additionally, it sets out measures for reducing these emissions, including leak detection and repair surveys, repair obligations, and restrictions on venting and flaring. It mandates that re-injecting or utilising methane on-site, or directing it to market, must always take precedence over venting or flaring. The Regulation provides rules for transparency related to methane emissions. The requirements of the Regulation will be phased in over the next three years. During the reporting period ADX proactively commenced taking the necessary steps to implement these measures.

Hedging

During the half year ADX has continued to deploy a rolling hedging strategy seeking to provide stable near-term revenue generation during volatile market conditions. A number of hedging transactions have been deployed during periods of favourable market conditions.

• On 26 January 2024, ADX executed hedging transactions with Britannic Trading Limited with a fixed price swap contract for 8,400 barrels of oil at a fixed Brent crude oil price of USD 80.00 per barrel for February 2024 to May 2024 inclusive. The quantity of hedged oil equated to approximately 70 BOPD during the period.

• On 3 April 2024, ADX executed additional hedging transactions with Britannic Trading Limited with a fixed price swap contract for 15,000 barrels of oil at a fixed Brent crude oil price of USD 85.31 per barrel for June 2024 to October 2024 inclusive. The quantity of hedged oil equates to approximately 100 BOPD during the period.

10

A D X E N E R G Y L T D D I R E C T O R S ’ R E P O R T

The balance of the crude oil production from the Anshof and Vienna Basin Fields remains unhedged during the period allowing ADX to maintain exposure to upside in Brent crude oil pricing. Gas production from the Vienna Basin Fields is also not hedged.

Following the end of the six month reporting period, ADX hedged part of its production for the rest of 2024. On 5 July 2024, ADX executed further hedging transactions with Britannic Trading Limited with a fixed price swap contract for 6,000 barrels of oil at a fixed Brent crude oil price of USD 83.15 per barrel for November 2024 and December 2024 inclusive.

Appraisal and Development Activities

Anshof Eocene Oil Project – Anshof Field Area, ADX-AT-II Licence, Upper Austria

ADX is operator and holds a 50% economic interest in the Anshof Field Area and a 60% interest in the Anshof-2 well. ADX is operator of the ADX-AT-II exploration license and holds a 100% interest in the licence other than the Anshof Field Area, Anshof-2 well and the Welchau Investment Area.

==> picture [241 x 330] intentionally omitted <==

Figure 7: Location map for the Anshof Field Area within the ADX-AT-II licence. The low-risk appraisal follow up satellite prospects (ADX 100% economic interest) including SGB, LIND and GRB

Anshof-3 Production

The Anshof-3 well remained shut-in during the first quarter of 2024 after reaching the regulatory limit of 5,000 tonnes (36,000 Barrels) for long term test production on 19 September 2023. The Eocene reservoir pressure at the Anshof-3 well recovered to near initial reservoir pressure during the shut-in period. A 3,000 BPD Permanent Production Facility (PPF) was installed and hooked up at the Anshof-3 site. The Anshof-3 well recommenced production as part of the commissioning of the PPF with first oil production into the PPF on 3 April 2024.

11

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

Following the recommencement of production Anshof-3 produced at an average daily rate of 100 BOPD (Gross) until 30 June 2024 with a 95% uptime over 89 production days. The well continues to show strong performance with no impairment to well productivity.

Development Drilling Program

The Anshof-2A well is planned as a producer in a more crestal part of the structure targeting a thicker section of the Eocene reservoir with excellent reservoir quality as was seen in the Anshof-2 well. The bottom hole location of Anshof-2A has been optimised utilising data obtained from the Anshof-2 well where the Eocene sands were approximately 6 times thicker than the Anshof-3 discovery well which is currently producing at approximately 110 BOPD (Gross).

The sidetrack drilling of the Anshof-2 well (Anshof-2A) commenced in early September 2024 and is expected to take 14 days in the success case with the well ready for test and tie-in to the PPF.

==> picture [466 x 347] intentionally omitted <==

Figure 8: Showing a comparison of the Eocene sand thickness (shown in yellow) between Anshof-3 (LHS) and Anshof-2 (RHS)

The Anshof-2A well will be sidetracked from below the 9 5/8” shoe of the Anshof-2 well. The well is planned to intersect the top Eocene sands at a vertical depth 37 metres shallower than the Eocene intersected at the water bearing Anshof-2 well. The well trajectory is in a North/North-East direction and will have a low angle (22[°] ) intersection of the Eocene some 0.5 km distance up-dip from the Eocene penetration in the Anshof-2 well. The Anshof-2A sidetrack well will minimise the cost to develop this part of the field and a well slot remains available for future development drilling from the Anshof well cluster and production site.

12

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

==> picture [483 x 203] intentionally omitted <==

----- Start of picture text -----

ANS-2A up-dip
location
----- End of picture text -----

Figure 9: Anshof field outline and areas of greater Eocene reservoir thickness with interpreted field oil-down-to (ODT) and the targeted bottom hole location of the ANS-2A sidetrack well

Permanent Production Facilities (PPF) Installation, Engineering and Commissioning

The Anshof field PPF was successfully installed and commissioned with first Anshof-3 oil production into the newly installed PPF on 3 April 2024.

Key development activities during the reporting period were as follows:

• The PPF mechanical Designated Authority inspection and certification was completed;

• The initial teething problems with measurement sensors in both the 3-phase separator and the storage tanks (oil and water) were successfully resolved at the beginning of Q3 2024; and

• Redirected waste heat from the CHP to the heat exchanger has increased the temperature in the settling tanks, enhancing the settling process while promoting energy efficiency and reducing environmental impact.

The PPF provides the following opportunities to optimise field production at Anshof:

• increased production capacity (3,000 barrels of liquids per day);

• capability to process oil from multiple wells;

• additional oil storage capacity;

• use of associated gas for power generation and process heat;

• enhanced automation requiring less manual operations; and

• utilisation of the facility to process oil from other fields discovered in the area.

The PPF will be mostly unmanned and operate 24 hours per day with wireless data transmission.

13

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

EXPLORATION ACTIVITIES

Upper Austria AGS Licenses – Molasse Basin – Onshore Austria

ADX is operator and holds a 75% interest in the Welchau Exploration Area and a 100% interest in the ADX-AT-I and ADXAT-II exploration licenses other than the Welchau Exploration Area and the Anshof Field Area. ADX’ interest in the MND Investment Area will reduce to 50% upon the completion of MND’s farmin obligations.

Welchau Gas Liquids Discovery

The Welchau-1 gas exploration well was spudded on the 24th of February 2024 using the RED Drilling & Services GmbH (RED) E200 drill rig in the ADX-AT-II exploration licence with the rig released on the 28th of March 2024. The well was suspended for future well testing after running and cementing 7-inch casing down to the well total depth (TD) at 1733 metres MD. Testing operations are planned to be conducted during a period from 1 October 2024 to 31 March 2025 in accordance with environmental conditions restricting exploration drilling and testing operations to the winter period.

==> picture [349 x 492] intentionally omitted <==

Figure 10: Map showing the Welchau-1 drilling location in the ADX-AT-II license area in the Northern Calcareous Alps

14

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

==> picture [387 x 515] intentionally omitted <==

Figure 11: Welchau-1 drilling location in the Northern Calcareous Alps

Following the completion of operations, the significant amount of well data gathered from drilling and evaluating the well has been utilised for ongoing structural interpretation, reservoir characterisation, resource estimation and well test planning. ADX has engaged a number of geotechnical and engineering professionals highly experienced in fractured carbonate reservoirs to assist the ADX team. An update of the Welchau resource estimate will be announced during the third quarter of 2024 prior to the commencement of well testing planned for the fourth quarter of 2024.

Welchau-1 Structural Definition

The Welchau-1 well is confirmed to be at or near the crest of an East-West trending, asymmetric anticline. This structural interpretation is in line with the pre-drill structural model prediction. There is a slight change in the strike of the fold axis making the structure less cylindrical than predicted (in the Eastern part of Welchau anticline), as shown in the figure below. There has been practically no change as yet in the gross rock volume estimates between pre and post drill.

15

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

==> picture [448 x 280] intentionally omitted <==

Figure 12: Welchau-1 Top Steinalm Formation pre and post drill mapping

Welchau-1 Data Analysis

There are three primary carbonate reservoirs in the Welchau-1 well which are promising for testing and ongoing appraisal. Based on hydrocarbon shows including wellbore inflows during drilling operations and electric line logs the formation intervals encountered are the Reifling (128 metres), the Steinalm (118 metres) and the Guttenstein (111 metres) formations. The Steinalm reservoir flowed condensate rich gas in 1989 at a rate of 4 MMSCFPD in the nearest discovery well (Molln-1) located approximately 3 km away.

The analysis of Welchau-1 well results including hydrocarbon shows, formation cuttings while drilling, electric line logging, formation sampling and coring was completed during the reporting period. The results are being used to update the resource range for Welchau and finalise the well testing design.

The specialist laboratory work carried out on the Modular Dynamic Tester sample taken in the Steinalm reservoir has confirmed the full properties (compositional data and thermodynamic characteristics) associated with the 43° API light sweet oil that was recovered in a MDT (down hole sample tool) run in the Steinalm Formation. The vertical extent of this overpressured light oil in the Steinalm or in the shallower Reifling and deeper Guttenstein is uncertain.

Wellbore image analysis specialists carried out a detailed fracture and fault analysis using the Welchau-1 image log data, the open hole log data together with the dynamic drilling data (i.e. mud losses to the formation and gas shows from the formation). The analysis includes the identification of the many fracture types (e.g. open, closed, partially cemented etc,) as well as their frequency, orientation etc. Multiple open fractures and resulting fracture net-works have been identified which are critical to hydrocarbon flow and hydrocarbon recovery in a carbonate reservoir.

In addition to fractures networks, the image specialists have identified other features that have the flow characteristics of open permeable fractures but are not fractures. These features are ‘reactivated beddings’ associated with folding of the rock (refer figure below). These ‘reactivated beddings’ are also expected to contribute to well flow and recovery.

16

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

==> picture [458 x 254] intentionally omitted <==

Figure 13: Shows the Welchau-1 Image log with ‘reactivated bedding’ and possible outcrop analogy

Welchau-1 Data Modelling

The image analysis work underpins the building of 3D conceptual models around the Welchau-1 well for well flow and resource estimation which will be incorporated into well test planning. This conceptual modelling work has commenced with experts in the field of fractured carbonates characterisation and resource estimation. In addition, this work will be utilised for the well test strategy, well test planning and future appraisal drilling. This 3D modelling work is planned to be completed during the third quarter of 2024 with a resource estimate range for each reservoir. The well testing is planned to commence during the fourth quarter of 2024.

Welchau-1 Well Test Permitting

ADX have made an application for the testing of the Welchau-1 well with a planned commencement date of 1 October 2024. Operational and environmental permits have been submitted to the designated authorities for an extended testing program during the Austrian winter months from 1 October 2024 to 31 March 2025. Permitting at the Welchau-1 location has required extra environmental precautions given the well sites proximity to a national park.

Welchau-1 follow up Potential

The Welchau-1 well has confirmed a highly prospective hydrocarbon play established by the Welchau-1 hydrocarbon discovery. The well has confirmed the existence of high quality gas and hydrocarbon liquids pervasive across multiple, large carbonate reservoirs in a structural setting that is capable of trapping large volumes of hydrocarbons, similar to plays in other thrust settings across the World.

17

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

Two immediate, follow up exploration targets have been identified:

• Welchau-1 Deepening : There remains over 1,000 metres of exploration potential below the current Welchau-1 well TD. The opportunity of deepening the Welchau-1 well after testing the existing discovery is being assessed.

• Step-out Exploration Lead : This lead is a similar anticline structure to Welchau. The feature has similar shallow drill depths that is located approximately 7 km Northwest of Welchau-1. The structure has been identified from surface imaging, dynamic structural balancing techniques and surface geology mapping. As was the case with Welchau some 2D seismic may help to detail the closure. Additional detailed field work is being undertaken to mature this prospect as a potential follow up exploration well.

Welchau Partnership Interests

In early 2023, Canadian TSX Venture Exchange listed MCF Energy Ltd, via its subsidiary MCF Energy GmbH, (MCF), executed an Energy Investment Agreement (EIA) to fund 50% of the cost of the Welchau-1 exploration well to earn a 20% economic interest in the Welchau Investment Area. The funding obligation was based on a well cost cap of EUR 3.8 million. On 9 January 2024, ADX announced a variation to the terms of the EIA with MCF such that MCF agreed to fund 50% of the Welchau-1 well costs up to EUR 5.1 million to earn a 25% economic interest in the Welchau Investment Area.

ADX-AT-I 2024 Gas Exploration

ADX is Operator and retains a 50% economic interest in the MND Investment Area following the completion of MND’s investment obligations. In accordance with the MND EIA (see summary below) MND has agreed to fund a gas exploration program in ADX-AT-I. ADX has retained a 100% interest in the remainder of the ADX-AT-I license including adjacent gas exploration prospects (OHO and ZAM) and the GMU geothermal / oil and gas energy prospect.

MND EIA Summary : In January 2024 MND paid back costs of EUR 0.45 million (A$0.74 million) to ADX and agreed to fund EUR 4.5 million (A$7.40 million) for exploration drilling to earn a 50% economic interest in MND Investment Area (an exploration investment area within the ADX-AT-I license), in Upper Austria. The MND Investment Area is shown in the map below.

==> picture [419 x 264] intentionally omitted <==

Figure 14: Map showing the MND Investment Area within the ADX-AT-I license which includes the LICHT and IRR gas exploration prospects

18

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

During the six-month period ADX continued to mature potential prospects for drilling during the fourth quarter of 2024. The parties had agreed to drill either the Lichtenberg (“LICHT”) prospect or IRR prospect. LICHT has a best technical resources estimate of 21.1 BCF of gas. The resources for LICHT has been revised due to remapping work with the benefit of the 3D seismic reprocessing and a review of the expected reservoir distribution and quality[1,2] .

¹ Original Prospective Resources reporting date 22.06.2023, updated 20.08.2024.

2 Prospective Resources are those estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) related to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further explorations appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

==> picture [327 x 240] intentionally omitted <==

Figure 15: Map showing the MND Investment Area which includes LICHT-1 drilling prospect as well as the GOLL, HERR and STOET gas exploration prospects

LICHT-1 is a play opening well with three nearby follow-up prospects STOET, HERR and GOLL which are estimated on a preliminary basis to have resource potential that is double the size of the LICHT prospect.

In addition to technical maturation of the LICHT and IRR drilling prospects land access has been secured with landowners for the IRR prospect as well as future shallow gas prospects in MND Investment Area such as SCHOEN and HOCH. All prospects offer significant resource potential for onshore gas, are fully covered by high quality 3D seismic, supported by seismically generated direct hydrocarbon indicator responses and are proximal to gas infrastructure.

The SCHOEN and HOCH prospects can be drilled with a smaller rig than that permitted for IRR and LICHT. ADX commenced enquiries to secure a suitable rig that will provide a more cost-effective alternative for drilling shallower prospects. These prospects are very close to gas infrastructure and are expected to contain dry natural gas (methane) only which would reduce the development time and cost for any discovery. The best technical prospective resources for HOCH and GAST were 4.8 BCF and 3.6 BCF[1] (refer to ASX Prospective Resources Update dated 22 June 2023). The revised HOCH – GAST prospect is now expected to contain 8 BCF best technical prospective resources.

1 Prospective Resources are those estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) related to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further explorations appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

19

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

The 3D seismic section below and the inserted reservoir amplitude map is indicative of gas reservoir presence and summarises the most important technical features of the combined HOCH-GAST prospect. The depth contours also show that the prospect has a very low risk 4-way dip closure component and a large structural – stratigraphic upside being located in the axis of a structural nose plunging to the NW. A drill site has been secured and permitting will commence after rig selection.

==> picture [489 x 198] intentionally omitted <==

Figure 16: Seismic cross section of HOCH prospect

Additional ADX-AT-I Gas Prospect Maturation (ADX 100% equity areas)

In addition to the work undertaken on preparing gas prospects for drilling within the MND Investment Area, ADX has undertaken prospect maturation work on areas within the remainder of the ADX-AT-I licence where it holds a 100% equity interest. Notably two large 3D seismic covered prospects have been identified (ZAM and OHO) with large prospective resource potential in excess of 100 BCF. (Refer to ASX Prospective Resources Update dated 22 June 2023).

Looking forward, prospect maturation work includes refining the stratigraphic horizon interpretation and identifying tectonic events of each prospect. Expert consultant study work will focus on establishing a kinematically consistent 3D structural model which is expected to significantly de-risk the large resource potential of the prospects in readiness for drilling and potential co-investment.

Seismic reprocessing of the ADX-AT-I area is in progress with DMT, Germany. State-of-the-art Pre-Stack Depth Migration (PSDM) is expected to de-risk several additional leads with approximately 50 MMBOE prospective resources potential that have been identified (mainly below the imbricated section that effects seismic imaging in deeper structures). The work is expected to be finalised by the end of the year.

Summary of Second Half of 2024 Exploration Activities in Upper Austria

A summary of planned exploration activities during second half of the year includes the following:

1. Welchau-1 operations planning and permitting for drilling and testing program;

2. The drilling of the LICHT gas exploration prospect in ADX-AT-I;

3. Revision of the Welchau-1 prospective resource estimates;

4. Testing the 450 metres of hydrocarbons shows in a giant Welchau structure; and

5. Ongoing prospect maturation and portfolio development in ADX-AT-I and ADX-AT-II licenses.

20

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

Upper Austria Farmout Activities

ADX suspended farmout activities in Upper Austria during the reporting period, concentrating the Company’s efforts on the oil appraisal drilling programme at Anshof, the ADX-AT-I gas exploration programme, the testing of the Welchau discovery during the fourth quarter as well as ongoing oil and gas prospect maturation.

ADX expects to update its prospect inventory during the fourth quarter of 2024 with a view to recommencing farmout activities early in 2025.

The combination of drill ready prospects, strong demand for hydrocarbons, a favourable regulatory framework in Austria and a proven Participation Framework developed by ADX and approved by the Austrian ministry (for the Anshof and MND transactions) is expected to provide a favourable environment for ongoing co-investment transactions.

Parta Exploration Permit and Iecea Mare Production Licence – Onshore Romania

ADX holds a 49.2% shareholding in Danube Petroleum Limited (Danube). The remaining shareholding in Danube is held by Reabold Resources Plc. Danube via its wholly owned subsidiary, ADX Energy Panonia S.R.L., holds a 100% interest in the Parta Exploration license (including a 100% interest in the Parta Appraisal Sole Risk Project) and a 100% interest in the Iecea Mare Production license. ADX is the operator of the permit pursuant to a services agreement with Danube.

During the six-month period ADX has engaged in ongoing discussions with the Regulatory Authorities in relation to options for the Parta exploration license extension. ADX has delivered a number of requested reports in support of the extension discussions. The Iecea Mare production license which has a validity (or term) of 20 years and is not affected. Options to exploit the geothermal potential of the Romanian part of the Pannonian Basin are under investigation with the authorities in combination with a subsurface review of the likely prospectivity.

The legislation for the use of Geothermal energy is under development, the regulator stated that a petroleum license needs to be transferred into a geothermal license, before any non-petroleum operations can be performed, after finalising all petroleum operations as defined in the license agreement.

Permit d 363C.R-.AX – Offshore Italy

ADX is operator and upon grant, will hold a 100% interest in the d 363C.R-.AX Exploration Permit

The d 363 C.R-.AX ’Nilde’ permit in the Sicily Channel, offshore Italy is located in a water depth of 90-100 metres just over 60 km from the shore of the island of Sicily and comprises the Nilde Oil Field, which previously produced 20.5 million barrels of 39° API oil in the 1980s, two further oil discoveries Norma-1 and Naila-1, as well as an exploration inventory of 5 oil leads. Across the permit there are Contingent Resources of 19.2 to 65.6 million[1] barrels of remaining oil and Prospective Resources of 40 to 201 million barrels oil (arithmetically added)[2] .

The total best technical prospective resource potential of five high graded gas prospects is 369 BCF (refer ASX announcement 30 August 2022). The five high graded prospects are considered as relatively low risk since they are simple 4-way dip anticline closures featuring a seismic amplitude response commonly known as Direct Hydrocarbon Indicators (DHI’s).

Note 1: Contingent Resources Reporting Date for Nilde was 29.03.2018 and Prospective Resources Reporting Date for d 363 C.R-.AX was 21.04.2016 (oil) and 30.08.2022 (gas).

Note 2: Refer to Cautionary Statement in relation to Prospective Resources below.

Prospective Resources are those estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) related to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further explorations appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

On May 9, 2024, the Italian ministry informed ADX that it had successfully completed a technical, financial and organisational capacity verification procedure in relation to ADX’ wholly owned Italian subsidiary, Audax Energy S.r.l. (Audax) resulting in authorizing Audax to hold and operate any E&P licence in Italy. The permit is currently expected to be formally granted by the end of 2024, after a meeting has been convened with all the local authorities involved.

21

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

In addition to the granted Gas Rights, the potential exists for a reversion to the 2018 legislative position which would enable the oil potential as well as the gas potential to be exploited within d 363C.R-.AX permit area. This is the result of the recent annulment of the Plan for the Sustainable Energy Transition of Eligible Areas (PiTESAI). The PiTESAI plan limited the extent of hydrocarbon activities preventing oil redevelopment, appraisal and exploration activities including the extensive oil potential within Audax’ d 363C.R-.AX permit which ADX intends to pursue after formal granting of the permit which is expected during the next reporting period.

RENEWABLE ENERGY PROJECTS - AUSTRIA

Vienna Basin Green Hydrogen and Solar Projects

During the six-month period ADX has conducted a comprehensive review of its renewable energy projects in order to define short-term and near-term objectives. The conclusion of this review was to focus the Company’s resources and efforts on:

• resuming feasibility work on less capital intensive projects such as the Vienna Basin solar project and green hydrogen early production scheme which could deliver revenues and reduce the cost of producing Vienna Basin Field hydrocarbons within the next 18-24 months; and

• developing larger scale projects such as the underground storage of green hydrogen in the Vienna Basin and GMU geothermal project in Upper Austria in collaboration with industry partners with strong financial capabilities and decarbonisation targets which could be satisfied by investing in the Company’s projects.

After the reporting date, ADX engaged a consultancy firm in Austria to undertake feasibility studies on the Vienna Basin solar project to bring it to a final investment decision stage. It is expected that the project will initially be focused on solar electricity generation for self-consumption by the Vienna Basin Fields’ production operations with the potential to be combined with grid feed-in sales. Electricity cost is one of the main operating expenses at the Vienna Basin Fields.

The generation of solar electricity at the Vienna Basin Fields would reduce ADX' carbon footprint and operating costs resulting in long-term value enhancements including higher netbacks and field life extension. Surplus electricity, not used for self-consumption, could be used as input for the production of high value green hydrogen suitable for the mobility sector through the development of a small-scale hydrogen early production scheme. Initial results of the feasibility studies are expected during the fourth quarter of 2024.

It is anticipated that future hydrogen demand in the EU and Austria will be satisfied with hydrogen imports. Austria's hydrogen imports are estimated to reach greater 1,000,000 tonnes per annum by 2032.

The Vienna Basin hydrogen storage project has the following combination of positive attributes:

• in excess of 100 GWh of hydrogen storage potential already identified in depleted gas reservoirs at the Gaiselberg field; and

• a strategic location 60 km to the North East of Vienna (main demand area) and in the middle of four hydrogen import corridors under development.

The Vienna Basin hydrogen storage project could act as a “buffer” for future hydrogen supply and demand flows as well as a "safety net" in the event of supply chain disruptions for Austria’s main hydrogen importers which are likely to be gas fired power generation providers, gas distributors and industrial users. In addition to these features, the Vienna Basin storage project would leverage ADX’ strengths which include an experienced geotechnical team, operating capability and existing infrastructure and land owned by ADX in the Vienna Basin. The Vienna Basin hydrogen storage project has the potential create long-term value and extend the life of the Vienna Basin Fields.

22

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

TENEMENTS LIST

Tenements held at the beginning and the end of the half year reporting period as per below table:

Permit	Percentage held as at 1 January 2024	Percentage held as at 30 June 2024	Percentage change
Onshore Austria, Zistersdorf and Gaiselberg Production License	100%	100%	-
Upper Austria AGS Licenses(a)	100%	100%	-
Onshore Romania,Parta(b)	100%	100%	-
Onshore Romania,Iecea Mare Production Licence(b)	100%	100%	-
Offshore Italy,d363C.R-.AX(c)	100%	100%	-

Note a: Concession agreements for exploration, production and gas storage in Upper Austria (Upper Austria AGS).

Anshof Discovery Area

The economic interests in the Anshof Discovery Area (excluding the Anshof-2 well) are 50% ADX, 30% MND Austria a.s (MND) and 20% Xstate Resources Limited (XST).

XST elected not to participate in the Anshof-2A well. ADX and MND agreed to fund XST’s share of well costs on a 50:50 basis and accordingly obtain the right to 60% and 40% respectively of production from the well unless XST opts to buy back into the well at a premium of 500% to well costs. In accordance with Anshof Discovery Area Partnership agreements, XST retains its 20% economic interest in the remainder of the Anshof Discovery Area with both ADX and MND’s economic interests remaining at 50% and 30% respectively.

Welchau Farmin Area

ADX executed an Energy Investment Agreement with MCF Energy Ltd via its subsidiary MCF Energy GmbH (MCF) to fund 50% of the Welchau-1 well costs up to a well cost cap of EUR 5.1 million to earn a 25% economic interest in the Welchau Investment Area. Upon completion of MCF’s funding obligations, ADX holds a 75% economic interest in the Welchau Investment Area.

ADX-AT-I Investment Area

ADX announced an Exploration Investment Agreement with MND Austria a.s (MND) where MND will secure a 50% economic interest in the Exploration Investment Area by providing cash payments to ADX and funding 100% of an agreed exploration work program of EUR 4.5 million. The Exploration Investment Area is part of the ADX-AT-I licence area.

ADX retains a 100% interest in the remainder of the ADX-AT-II exploration license and the remainder of the ADX-AT-I exploration license.

Note b: ADX holds a 49.2% shareholding in Danube Petroleum Limited (Danube). The remaining shareholding in Danube is held by Reabold Resources Plc. Danube via ADX Energy Panonia holds a 100% interest in the Parta Exploration license (including a 100% interest in the Parta Appraisal Sole Risk Project) and a 100% interest in the Iecea Mare Production license. ADX is the operator of the permit pursuant to a Services Agreement with Danube.

Note c: ADX has commenced a process with the Italian Designated Authority to convert the exclusively awarded application to a ratified licence. The licence has been informally offered to ADX and is currently expected to be formally granted by the end of 2024, after a meeting has been convened with all the local authorities involved. .

Persons compiling information about Hydrocarbons:

Pursuant to the requirements of the ASX Listing Rule 5.31, 5.41 and 5.42 the technical and reserves information relating to Austria and Italy contained in this release has been reviewed by Paul Fink as part of the due diligence process on behalf of ADX. Mr Fink is Technical Director of ADX Energy Ltd is a qualified geophysicist with 30 years of technical, commercial and management experience in exploration for, appraisal and development of oil and gas resources. Mr Fink has reviewed the results, procedures and data contained in this release and considers the resource estimates to be fairly represented.

23

A D X E N E R G Y L T D

D I R E C T O R S ’ R E P O R T

Mr Fink has consented to the inclusion of this information in the form and context in which it appears. Mr Fink is a member of the EAGE (European Association of Geoscientists & Engineers) and FIDIC (Federation of Consulting Engineers).

Previous Estimates of Reserves and Resources:

ADX confirms that it is not aware of any new information or data that may materially affect the information included in the relevant market announcements for reserves or resources and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.

SUBSEQUENT EVENTS

Additional Hedging

On 5 July 2024, ADX executed further hedging transactions with Britannic Trading Limited (trading entity of BP) (“BTL”) with the following additional derivative financial instruments:

• Fixed price swaps for 6,000 barrels of oil at a fixed Brent crude oil price of USD 83.15 per barrel for November 2024 to December 2024 inclusive.

Equity Issues in Lieu of Remuneration

On 1 August 2024, ADX issued the following shares and options. These amounts were accrued in the 30 June 2024 financial statements:

• a. 188,501 shares ($19,604) issued pursuant to ADX’ Directors’ Share Plan, approved by Shareholders on 22 May 2024. The shares were issued to directors in consideration of remuneration elected to be paid via shares for the quarter ended 30 June 2024.

• b. 603,468 shares ($64,571) issued to ADX’s Company Secretaries and consultants in consideration of remuneration elected to be paid via shares for the quarter ended 30 June 2024.

• c. 196,514 Options ($20,437) granted to Director Ian Tchacos, as approved by Shareholders on 22 May 2024. The options were granted in consideration of consultancy fees remuneration elected to be paid via options for the quarter ended 30 June 2024). The options have a nil exercise price and expire on 31 July 2028.

No other matter or circumstance has arisen since 30 June 2024 that has significantly affected or may significantly affect the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity, in subsequent financial years.

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the auditor’s independence declaration as required by section 307C of the Corporations Act 2001 is set out on page 26.

This report is made in accordance with a resolution of the directors.

==> picture [152 x 51] intentionally omitted <==

Ian Tchacos Executive Chairman VIENNA, 13 September 2024

24

A D X E N E R G Y L T D

D I R E C T O R S ’ D E C L A R A T I O N

In accordance with a resolution of the Directors of ADX Energy Ltd, I state that:

1. In the opinion of the directors:

   • a) The financial statements and notes are in accordance with the Corporations Act 2001, including:

     • i) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its performance for the half-year ended on that date; and

     • ii) complying with Australian Accounting Standard 134 Interim Financial Reporting and the Corporations Regulations 2001; and

   • b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

2. This declaration has been made after receiving the declarations required to be made to the directors in accordance with Section 295A of the Corporations Act 2001 for the half-year ended 30 June 2024.

This declaration is signed in accordance with a resolution of the Board of Directors.

==> picture [152 x 51] intentionally omitted <==

Ian Tchacos Executive Chairman

VIENNA, 13 September 2024

25

A D X E N E R G Y L T D

A U D I T O R ’ S I N D E P E N D E N C E D E C L A R A T I O N

==> picture [484 x 710] intentionally omitted <==

26

A D X E N E R G Y L T D

C O N S O L I D A T E D

S T A T E M E N T O F P R O F I T O R L O S S A N D O T H E R C O M P R E H E N S I V E I N C O M E F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

Note Operating revenue 3 Cost of sales 3 Gross profit/(loss) Other income 3 Other Expenses: Administration, staff and corporate expenses, net of recoveries from exploration projects 3 Exploration expensed Finance costs 3 Restoration expenses – changes in abandonment provision 9 Dry well costs Total other expenses Loss before income tax Income tax benefit 5 Net loss for the half-year Loss is attributable to: Owners of ADX Energy Ltd Non-Controlling Interest 12 Other Comprehensive Income Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations Hedge accounting 11 Income tax relating to items of other comprehensive income 11 Other comprehensive income for the period, net of tax Total comprehensive income for the period Total comprehensive income is attributable to: Owners of ADX Energy Ltd Non-Controlling Interest Earnings per share for loss attributable to the ordinary equity holders of the Company: Basic loss per share	Half-year ended 30 June 2024 $ Half-year ended 30 June 2023 $ 4,971,267 7,043,474 (5,840,837) (6,526,200)
	(869,570) 517,274 263,239 665,380 (1,854,905) (1,804,223) (814,926) (1,072,561) (202,499) (56,549) (281,439) (648,207) - (387,461)
	(3,153,769) (3,969,001)
	(3,760,100) (2,786,347) 434,152 412,672
	(3,325,948) (2,373,675)
	(3,280,545) (2,299,049) (45,403) (74,626)
	(3,325,948) (2,373,675)
	32,483 364,790 13,672 64,406 - -
	46,155 429,197
	(3,279,793) (1,944,478)
	(3,242,583) (2,047,553) (37,210) 103,075
	(3,279,793) (1,944,478)
	Cents Per Share Cents Per Share (0.70) (0.65)

27

A D X E N E R G Y L T D C O N S O L I D A T E D S T A T E M E N T O F F I N A N C I A L P O S I T I O N A S A T 3 0 J U N E 2 0 2 4

Note ASSETS Current Assets Cash and cash equivalents Trade and other receivables Inventories Total Current Assets Non-Current Assets Other receivables Oil and gas properties 7 Right of use assets Deferred tax assets 5 Total Non-Current Assets Total Assets LIABILITIES Current Liabilities Trade and other payables Borrowings 8 Lease liabilities – right of use assets Provisions 9 Total Current Liabilities Non-Current Liabilities Borrowings 8 Lease liabilities – right of use assets Provisions 9 Total Non-Current Liabilities Total Liabilities Net Assets EQUITY Issued capital 10 Reserves 11 Accumulated losses Capital and reserves attributable to owners of ADX Energy Ltd Non-controlling interests 12 Total Equity	As at 30 June 2024 $ As at 31 December 2023 $ 12,579,631 8,007,441 1,743,505 3,421,979 3,036,987 2,255,367
	17,360,123 13,684,787
	1,101,374 1,104,192 30,504,924 25,145,587 1,144,516 1,209,783 1,951,863 1,490,803
	34,702,677 28,950,365
	52,062,800 42,635,152
	3,591,892 5,136,865 1,755,493 609,394 105,388 105,644 339,204 241,701
	5,791,977 6,093,604
	- 1,403,067 1,055,369 1,110,752 18,577,811 18,286,204
	19,633,180 20,800,023
	25,425,157 26,893,627
	26,637,643 15,741,525
	104,629,976 90,503,290 5,486,677 5,399,490 (91,553,892) (88,273,347)
	18,562,761 7,629,433 8,074,882 8,112,092
	26,637,643 15,741,525

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

28

A D X E N E R G Y L T D

C O N S O L I D A T E D S T A T E M E N T O F C H A N G E S I N E Q U I T Y F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

	Issued Capital Reserves Accumulated Losses Non- controlling Interests Total Equity $ $ $ $ $
At 1 January 2023 Loss for the half-year Other comprehensive income Total comprehensive income for the period, net of tax Transactions with owners in their capacity as owners: Issue of share capital Share based payments – options and performance rights Share issue costs At 30 June 2023	84,105,646 4,121,084 (84,209,138) 8,381,640 12,399,232 - - (2,299,049) (74,626) (2,373,675) - 251,496 - 177,701 429,197
	- 251,496 (2,299,049) 103,075 (1,944,478)
	175,683 - - - 175,683 - 463,930 - - 463,930 (4,007) - - - (4,007)
	171,676 463,930 - - 635,606
	84,277,322 4,836,510 (86,508,187) 8,484,715 11,090,360
At 1 January 2024 Loss for the half-year Other comprehensive income Total comprehensive income for the period, net of tax Transactions with owners in their capacity as owners: Issue of share capital Share-based payments – options (note 11) Share issue costs At 30 June 2024	90,503,290 5,399,490 (88,273,347) 8,112,092 15,741,525 - - (3,280,545) (45,403) (3,325,948) - 37,962 - 8,193 46,155
	- 37,962 (3,280,545) (37,210) (3,279,793)
	14,946,570 - - - 14,946,570 - 49,225 - - 49,225 (819,884) - - - (819,884)
	14,126,686 49,225 - - 14,175,911
	104,629,976 5,486,677 (91,553,892) 8,074,882 26,637,643

The above-consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

29

A D X E N E R G Y L T D

C O N S O L I D A T E D S T A T E M E N T O F C A S H F L O W S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

CONSOLIDATED Cash Flows from Operating Activities Receipts in the ordinary course of activities, including net GST refunds Payments to suppliers and employees, including exploration expenses Interest received Interest paid Income taxes paid Net cash flows from/(used in) operating activities Cash Flows from Investing Activities Payments for oil and gas properties – Austrian facilities Payments for oil and gas properties - appraisal/development Receipts from farmouts/partners Payments to partners Net cash flows from/(used in) investing activities Cash Flows from Financing Activities Proceeds from the issue of shares Proceeds from the exercise of options Payment of share issue costs Bank Loans repaid Payment of lease liabilities (right-of-use assets) Net cash flows from/(used in) financing activities Net Increase/(Decrease) In Cash and Cash Equivalents Cash and Cash Equivalents at the beginning of half-year Effect of foreign exchange rates Cash and Cash Equivalents at the end of half-year	Half-year ended 30 June 2024 $ Half-year ended 30 June 2023 $ 7,046,565 7,150,710 (8,233,672) (7,198,251) 26,512 1,463 (78,916) (8,902) 139,720 -
	(1,099,791) (54,980)
	(13,534,299) (1,419,968) (76,502) (64,405) 6,586,916 463,332 (945,048) (159,807)
	(7,968,933) (1,180,848)
	13,500,000 - 1,296,611 - (819,908) (4,007) (303,959) (308,794) (77,988) (114,137)
	13,594,756 (426,938)
	4,526,032 (1,662,766) 8,007,441 3,569,631 46,158 136,766
	12,579,631 2,043,631

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

30

A D X E N E R G Y L T D

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

1. Basis of Preparation of Half-Year Financial Statements

ADX Energy Ltd is a company limited by shares, domiciled and incorporated in Australia. Its shares are publicly traded on the Australian Stock Exchange.

This consolidated financial report for the half-year ended 30 June 2024 has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001.

The half-year financial report does not include all notes of the type normally included within the Annual Financial Report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

The half-year financial report should be read in conjunction with the annual financial report for the year ended 31 December 2023 and any public announcements made by ADX Energy Ltd during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

ADX Energy Ltd is a for-profit entity for the purpose of preparing the half-year financial statements.

The half year consolidated financial statements comprise the financial statements of ADX Energy Ltd and its subsidiaries (“Group”) as at 30 June 2024.

Functional and presentation currency

ADX Energy Ltd has identified Australian dollars as its functional currency on the basis that all fundraising is in Australian dollars, and loans to subsidiary companies are made from Australian dollars.

ADX’s subsidiaries have the following functional currencies:

AuDAX Energy Srl - EUR Bull Petroleum Pty Ltd - AUD Danube Petroleum Limited - GBP ADX Energy Panonia Srl - EUR Terra Energy Limited - GBP ADX VIE GmbH - EUR Kathari Energia Limited - GBP Kathari Energia GmbH - EUR

The presentation currency of the Group is Australian dollars (AUD).

Adoption of New or Revised Standards

The accounting policies and methods of computation are the same as those adopted in the most recent annual financial report. All new and amended Accounting Standards and Interpretations effective from 1 January 2024 have been adopted. None of these amended standards had a material impact on the ADX Group. The Group has not elected to early adopt any new standards or amendments.

31

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

A D X E N E R G Y L T D

1. Basis of Preparation of Half-Year Financial Statements - continued

Going Concern

The financial statements have been prepared on the basis that the Company will continue to meet its commitments and can therefore continue normal business activities and realise assets and settle liabilities in the ordinary course of business.

As a producer in Austria, the Group expects to generate positive cash flows, however with a focus on exploration and development, the Group may need additional cashflows to finance these activities. The Group incurred a net loss of $3,325,948 for the six months to 30 June 2024 and had a net cash outflow from operating activities of $1,099,791. During the half-year, the financial results were lower due to the Anshof-3 well in Upper Austria being shut-in on 19 September 2023 after reaching the regulatory limit of 5,000 tonnes (36,000 Barrels) for test production and only recommenced through a Permanent Production Facility on 3 April 2024.

The ability of the Company to continue as a going concern may require additional capital fundraising, farmouts of projects or other financing opportunities. During the half-year, ADX successfully raised A$13.5 million (before costs) under a placement. The Directors believe that the Company will continue as a going concern and has the ability to raise additional funds if required. As a result, the financial information has been prepared on a going concern basis. However, should fundraising, farmouts or any alternative financing opportunities be unsuccessful, the Company may not be able to continue as a going concern. No adjustments have been made relating to the recoverability and classification of liabilities that might be necessary should the Company not continue as a going concern.

2. Earnings Per Share

The Company’s potential ordinary shares, being its options granted, have been excluded in the determination of diluted earnings per share as they are considered to be anti-dilutive for the periods presented.

3. Income and Expenses OPERATING REVENUE Oil sales Gas sales Hedging gains / (losses), net Other operating revenue (including reimbursements)	Consolidated 6 Months to 6 Months to 30 June 2024 30 June 2023 $ $ 4,561,572 6,146,862 228,411 625,854
	4,789,983 6,772,716 (30,138) 75,463 211,421 195,295
	4,971,267 7,043,474

32

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

A D X E N E R G Y L T D

Note 3. Income and Expenses - continued OTHER INCOME Income from farmouts - costs recovery Option fee income Interest revenue Other COST OF GOODS SOLD Operating costs Royalties Depreciation Amortisation of asset retirement obligation assets Partner share of ANS-3 operations 13 OTHER EXPENSES – Administration and corporate expenses: Share based payments – in lieu of cash remuneration 4 Share based payments – employee options / performance rights 4 Less: prior period accrued share based payments Add: accrued share based payments issued/ to be issued after period end Net foreign exchange losses/(gains) Short term lease expenses Depreciation – right of use assets Defined contribution superannuation/pension expense Other administration, staff and corporate expenses Less: project cost recoveries OTHER EXPENSES – Finance costs: Interest expense Accretion Right of use assets - interest Share based payments – borrowing costs	Consolidated 6 Months to 6 Months to 30 June 2024 30 June 2023 $ $ - 498,828 - 163,458 26,499 1,463 236,740 1,631
	263,239 665,380
	4,228,057 4,745,087 210,399 472,131 1,293,016 1,067,472 127,542 133,269 (18,177) 108,241
	5,840,837 6,526,200
	178,085 244,682 21,100 394,930
	199,185 639,612 (78,419) (140,334) 104,613 113,045 122,287 (110,631) 23,094 66,129 63,404 61,541 112,235 70,642 2,919,796 1,969,690
	3,466,195 2,669,694 (1,611,290) (865,471)
	1,854,905 1,804,223
	78,916 8,903 46,879 44,477 28,237 3,169 48,467 -
	202,499 56,549

33

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

A D X E N E R G Y L T D

4. Share Based Payments

(a) Value of share based payments in the financial statements

Expensed in the profit and loss: Share-based payments – Employee Performance Rights / Options 4(b)(v) Shares and Options issued in lieu of fees: Options issued in lieu of fees: Share-based payments – Options Issued to Directors 4(b)(ii) Shares issued in lieu of fees: Share-based payments – Shares Issued to Directors 4(b)(i) Share-based payments – Shares Issued to other KMPs 4(b)(iii) Share-based payments – Shares Issued to consultants 4(b)(iv) Share-based payments – Shares Issued for other services Options issued to loan note holders in 2023- Share-based payments – Borrowing costs	21,100 394,930 28,125 69,000 43,753 110,167 9,600 9,600 96,607 55,916 - -
	199,185 639,612
	48,467 -

(b) Summary of share-based payments granted during the half-year:

• (i) Shares pursuant to ADXs’ Directors’ Share Plan, approved by Shareholders at ADX’s AGM on 22 May 2024 as follows:

2024 as follows:
Date Issued	Number of Shares	Value based on 90 Day VWAP$	In lieu of part remuneration for thequarter ended
02/02/2024	214,660	22,969	31/12/2023
23/05/2024	131,547	20,784	31/03/2024
	346,207	43,753
Issued Subsequent to Year End
01/08/2024	188,501	19,604	30/06/2024

• (ii) Options pursuant to ADXs’ Employee Securities Incentive Plan, approved by Shareholders at ADX’s AGM on 22 May 2024 as follows:

Date Issued	Number of Options	Value based on 90 Day VWAP$	In lieu of part remuneration for thequarter ended
02/02/2024	131,425	14,062	31/12/2023
23/05/2024	89,003	14,063	31/03/2024
	220,428	28,125
Issued Subsequent to Year End
01/08/2024	196,514	20,437	30/06/2024

34

A D X E N E R G Y L T D

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

4. Share Based Payments - continued

• (iii) Shares to company secretaries in lieu of remuneration:

Date Issued	Number of Shares	Value $	In lieu of part remuneration for thequarter ended
02/02/2024	44,859	4,800	31/12/2023
23/05/2024	30,380	4,800	31/03/2024
	75,239	9,600
Issued Subsequent to Year End
01/08/2024	46,154	4,800	30/06/2024

• (iv) Shares to consultants in lieu of remuneration:

Date Issued	Number of Shares	Value $	In lieu of part remuneration for thequarter ended
02/02/2024	357,784	36,588	31/12/2023
23/05/2024	415,663	60,019	31/03/2024
	773,447	96,607
Issued Subsequent to Year End
01/08/2024	557,314	59,771	30/06/2024

• (v) During the year the following securities were granted as equity compensation benefits to employees and consultants:

• a) 500,000 unlisted options granted and allotted on 29 February 2024 to a consultant pursuant to the Company’s Employee Incentives Securities Plan (value $21,100).

Black-Scholes option pricing model

The assessed fair values of the options were determined using a Black-Scholes option pricing model, taking into account the exercise price, term of option, the share price at grant date and expected price volatility of the underlying share, expected dividend yield and the risk-free interest rate for the term of the option. The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. No other features of options granted were incorporated into the measurement of fair value.

35

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

A D X E N E R G Y L T D

	Consolidated	Consolidated
6	Months to	6 Months to
	30 June	30 June
	2024	2023
	$	$

5. Income Tax

(a) Income Tax Expense

(a) Income Tax Expense
The reconciliation between tax expense and the product of accounting loss before income tax multiplied by the Company’s applicable income tax rate is as follows: Loss for the period Prima facie income tax (benefit) @ 30% Tax effect of non-deductible items Tax rate differential Tax rate change – Austria Translation differences Deferred tax assets not brought to account Income tax (benefit)/expense attributable to operating result (b) Deferred tax assets not recognised relate to the following: Tax losses These deferred tax assets have not been brought to account as it is not probable that tax profits will be available against which deductible temporary differences can be utilised. (c) Deferred tax assets and liabilities: Deferred tax assets: Temporary differences - Tax losses Temporary differences – Other Less: Offset Deferred Tax Liabilities Temporary differences - Oil and gas properties, net of partnerships Temporary differences - Asset retirement obligations Temporary differences – Other Net Deferred Tax Assets	(3,760,100) (2,786,347)
	(1,128,030) (835,904) 215,986 245,275 147,109 94,638 14,252 - 26,346 38,397 290,185 44,922
	(434,152) (412,672)
	30 June 2024 31 December 2023 $ $ 15,584,645 15,065,555
	3,266,486 2,769,083 300,052 306,660 (1,331,997) (1,271,132) (19,443) (35,558) (263,235) (278,250) 1,951,863 1,490,803

36

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

A D X E N E R G Y L T D

6. Non-cash Financing and Investing Activities

There were no non-cash financing or investing activities during the period (2024: nil). Non-cash operating activities, consisting of shares and options granted in lieu of remuneration and services are disclosed in note 4.

7. Oil and Gas Properties Austria Buildings Undeveloped land Field office fixtures and equipment Plant and machinery Wells Retirement obligation assets Construction in progress Rights and other intangible assets Romania Appraisal costs Reconciliation of the carrying amount of oil and gas assets: Buildings – opening balance Depreciation Translation differences Undeveloped Land – opening balance Translation differences Field office fixtures and equipment – opening balance Additions Depreciation Translation differences	Consolidated 30 June 2024 31 December 2023 $ $ 247,060 266,833 182,471 182,913 313,054 340,222 3,624,851 3,511,728 9,890,637 6,960,443 1,526,427 1,655,805 5,508,948 3,072,838 5,328 10,807
	21,298,776 16,001,589 9,206,148 9,143,998
	30,504,924 25,145,587
	266,833 296,672 (19,439) (38,817) (334) 8,978
	247,060 266,833
	182,913 177,793 (442) 5,120
	182,471 182,913
	340,222 265,259 16,168 143,408 (43,206) (75,321) (130) 6,876
	313,054 340,222

37

A D X E N E R G Y L T D

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

7. Oil and Gas Properties - continued Reconciliation of the carrying amount of oil and gas assets - continued: Plant and machinery – opening balance Additions Transfer Depreciation Translation differences Wells – opening balance Additions Transferred from Construction in Progress Depreciation Translation differences Construction in progress – opening balance Additions, net of partner contributions Transferred to Wells Dry well cost Translation differences Rights and other intangible assets – opening balance Depreciation Translation differences Retirement obligation assets (Austria) – opening balance Additions Amortisation Translation differences	Consolidated 30 June 2024 31 December 2023 $ $ 3,511,728 3,723,913 547,959 373,687 (76,640) - (357,649) (696,730) (547) 110,858
	3,624,851 3,511,728
	6,960,443 4,647,644 3,800,305 94,323 - 3,568,743 (867,180) (1,459,433) (2,931) 109,166
	9,890,637 6,960,443
	3,072,838 4,588,376 2,443,549 3,494,943 - (3,568,743) - (1,638,550) (7,439) 196,812
	5,508,948 3,072,838
	10,807 21,132 (5,542) (11,057) 63 732
	5,328 10,807
	1,655,805 1,441,571 - 449,456 (127,542) (274,460) (1,836) 39,238
	1,526,427 1,655,805

38

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

A D X E N E R G Y L T D

7. Oil and Gas Properties - continued Reconciliation of the carrying amount of oil and gas assets - continued: Appraisal costs – Romania – opening balance Additions Additions – rehabilitation and restoration provision Translation differences 8. Borrowings Current Loan notes – interest bearing - unsecured Loan notes – borrowing costs (options) Loan notes – borrowing costs (options - accretion) Loan notes – net Bank loans – Loan A - interest bearing Bank loans – Loan B - interest bearing Non-Current Loan notes – interest bearing - unsecured Loan notes – borrowing costs (options) Loan notes – borrowing costs (options - accretion)	Consolidated 30 June 2024 31 December 2023 $ $ 9,143,997 8,513,327 85,397 148,804 - 237,826 (23,246) 244,041
	9,206,148 9,143,998
	1,500,000 - (145,400) - 96,934 -
	1,451,534 - 169,464 339,751 134,495 269,643
	1,755,493 609,394
	- 1,500,000 - (145,400) - 48,467
	- 1,403,067

39

A D X E N E R G Y L T D

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

8. Borrowings - continued

Bank Loans

As announced on 5 August 2020, ADX’ Austrian subsidiary, ADX VIE GmbH, secured banking facilities totalling EUR 1,130,000 from Volksbank Wien AG (Volksbank) and guaranteed by the Austria Wirtschafts (“Economy”) Service (the Innovation and Start Up Financing bank of the Austrian state) (AWS), split between two loan facilities:

• Loan A - EUR 500,000 (A$ 806,972): interest-free until 31 July 2022, at which point interest charged is at Euribor plus 0.75%, with the rate to be at least 0%; and

• Loan B - EUR 630,000 (A$ 1,016,785): incurring interest at 1% per annum on the drawn down value.

• The Collateral for the loan facilities is EUR 120,000 (A$ 193,673) (held in an ADX VIE GmbH bank account with Volksbank).

• The loans are fully drawn. Loan repayments commenced on 30 June 2022 and continue to be repaid every six months through to 31 December 2024.

• Loan covenants restrict dividends and profit distributions but do not prevent payment of intercompany recharges or loans. A negative pledge relating to other debt is limited to taking up further debt at a subsidiary level and does not restrict servicing of existing debt.

As at the date of this report, EUR 941,665 (A$ 1,514,222) of these loans have been repaid.

Loan Notes

On 11 July 2023, ADX secured A$1,500,000 in loan note funding. A total of 30 loan notes of A$50,000 each totalling A$1,500,000 (Loan Notes) were issued to a small number of supportive existing shareholders and new sophisticated investors. The Loan Notes are unsecured. The terms for the Loan Notes are summarised as follows:

			Loan Note A	Loan Note B	Total Loan
					Notes
Face Value of Each		Loan Note	$50,000	$50,000	$50,000
Number of Loan Notes Issued			20	10	30
Total	Loans	aggregate	$1,000,000	$500,000	$1,500,000
amount
			18 Months	18 Months	18 Months
Loan Term			(11 January	(11 January	(11 January
			2025)	2025)	2025)
Interest Rate per annum (payablequarterlyin arrears)			8%	12%	8-12%
Free	Attaching	Unlisted	150,000 Options		Total of
Options	with an Exercise Price		per Loan Note		3,000,000
of $0.10, expiring		11 January	(3,000,000 in	-	Options*
2025			Total)
Free	Attaching	Unlisted	150,000 Options	215,000	Total of
Options	with an Exercise Price		per Loan Note	Options	5,150,000
of $0.14, expiring		11 January	(3,000,000 in	per Loan	Options*
2025			Total)	Note
				(2,150,000
				in Total)

• Post-consolidated amounts

40

A D X E N E R G Y L T D

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

9. Provisions Current Provision for employee entitlements Non-Current Provision for employee entitlements Provision for asset retirement obligations (ARO) – production assets Provision for rehabilitation and restoration – Romania Reconciliation of the movement in ARO provision: Opening balance Additions – capitalised to retirement obligation assets Additions - expensed Accretion Translation differences Provision for asset retirement obligations (non-current) – closing balance Provision for rehabilitation and restoration – Romania – opening balance Additions Translation differences Provision for rehabilitation and restoration – Romania – closing balance	30 June 2024 31 December 2023 $ $ 339,204 241,701
	245,659 234,346 17,426,729 17,144,238 905,423 907,620
	18,577,811 18,286,204
	17,144,238 15,207,275 - 449,456 281,439 970,159 46,879 91,740 (45,827) 425,608
	17,426,729 17,144,238
	907,620 651,046 - 237,826 (2,197) 18,748
	905,423 907,620

41

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

A D X E N E R G Y L T D

10. Issued Capital

(a) Issued Capital Movements

Number of Shares Summary of Movements of Shares Note 427,865,791 Opening balance 1 January 2024 214,660 Issue of shares to Directors (part remuneration for 12/2023 quarter) 4 402,643 Issue of shares to Co Secs and Consultants (remuneration for 12/2023 quarter) 4 350,000 Options exercised at $nil 9,943,337 Options exercised at $0.13 25,000 Options exercised at $0.16 128,571,428 Placement (T1 and T2) at $0.105 131,547 Issue of shares to Directors (part remuneration for 3/2024 quarter) 4 446,043 Issue of shares to Co Secs and Consultants (remuneration for 3/2024 quarter) 4 - Costs of shares issued - cash 567,950,449 Closing Balance as at 30 June 2024

6 Months to 30 June 2024 $ 90,503,290 22,969 41,388 - 1,292,634 4,000 13,500,000 20,784 64,819 (819,908)

104,629,976

Placement Raising A$ 13.5 million

In May 2024, ADX advised it had successfully raised A$13.5 million (before costs) from the issue of 128,571,428 new fully paid ordinary shares at an issue price of A$0.105 per share. One (1) free-attaching quoted option was issued for every two (2) Placement Shares. The exercise price of the Placement Options is A$0.15 with an expiry date of 8 May 2026.

Funds raised by the Placement are being used to fund the following asset activities;

• The evaluation and analysis of data from the recently completed Welchau-1 gas condensate discovery well leading to a post drill reassessment of Welchau’s resource potential, as well as the planning and execution of production testing of the 450 metre gas column that was encountered based on gas shows;

• The assessment of the prospectivity of exploration potential below the current total depth of the Welchau-1 well and the potential deepening of the well;

• Planning, permitting and drilling of a gas exploration well in the ADX-AT-I exploration licence which will be jointly funded via a farmout with MND;

• The planning, permitting, drilling, completion and tie-in of the Anshof-2A sidetrack appraisal well which is expected to be produced via the recently installed and commission permanent production facility at the Anshof-3 drill site location;

• The upgrade of gas processing facilities including a CO2 reduction plant at ADX’ Vienna Basin oil and gas fields; and

• General working capital.

Options Exercised

In March 2024, ADX received $ 1.296 million from the exercise of 9,943,337 options at 13 cents each, and 25,000 options at 16 cents each.

42

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

A D X E N E R G Y L T D

10. Issued Capital - continued

(b) Options on issue as at 30 June 2024

Options on issue as at 30 June 2024
Number Exercise Price Unlisted Options 13,231,674 13 cents Unlisted Options 161,608 Nil cents Unlisted Options 31,865,000 16 cents Unlisted Options 3,000,000 10 cents Unlisted Options 5,150,000 14 cents Unlisted Options 725,000 Nil cents Unlisted Options 6,350,000 17 cents Unlisted Options 314,584 Nil cents Unlisted Options 245,625 Nil cents Unlisted Options 500,000 17 cents Unlisted Options 329,465 Nil cents Unlisted Options 185,796 Nil cents Listed Options (ASX: ADXO) 64,285,731 15 cents Unlisted Options 311,719 Nil cents Unlisted Options 269,532 Nil cents Unlisted Options 380,358 Nil cents Unlisted Options 283,929 Nil cents Unlisted Options 275,893 Nil cents Unlisted Options 300,000 Nil cents Unlisted Options 332,291 Nil cents Unlisted Options 131,425 Nil cents Unlisted Options 89,003 Nil cents Total Options 128,718,633 Summary of Movements of Options during the year Note Opening balance 1 January 2024 Issue of Director Share Purchase Plan Options (approved by Shareholders 22/2/2024) Issue of Consultant ESS Options Options exercised at $Nil Options exercised at $0.13 Options exercised at $0.16 Issue of unlisted options in lieu of remuneration to Directors Ian Tchacos – Dec 2023 quarter 4 Issue of unlisted options in lieu of remuneration to Directors Ian Tchacos – March 2024 quarter 4 Issue of Listed options with Placement 10(a) Closing Balance as at 30 June 2024	Expiry Date 10/08/2024 31/10/2024 31/12/2024 11/01/2025 11/01/2025 31/01/2025 30/04/2025 31/05/2025 31/07/2025 31/03/2026 31/10/2025 31/01/2026 08/05/2026 31/05/2026 31/07/2026 31/10/2026 31/01/2027 31/05/2027 31/07/2027 31/10/2027 31/01/2028 31/05/2028 Number of Options 73,780,811 250,000 500,000 (350,000) (9,943,337) (25,000) 131,425 89,003 64,285,731
	128,718,633

43

A D X E N E R G Y L T D

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

11. Reserves Share-based payments reserve Foreign currency translation reserve Hedging Reserve Reconciliation of the movement in Share-based Payments Reserve: Balance brought forward Share-based payments (options granted to Directors) Share-based payments (ESS options granted to consultant) Movement for the period Balance at the end of the period Reconciliation of the movement in Hedging Reserve: Balance brought forward Change in value of hedging instruments recognised in Other Comprehensive Income for the period Balance at the end of the period	Consolidated 30 June 2024 31 December 2023 $ $ 6,687,334 6,638,109 (1,214,329) (1,238,619) 13,672 -
	5,486,677 5,399,490
	6,638,109 5,724,244 28,125 913,865 21,100 -
	49,225 913,865
	6,687,334 6,638,109
	- - 13,672 -
	13,672 -

12. Non-controlling Interests

ADX’s subsidiaries that have non-controlling interests:

Name of Controlled Entity	Place of Incorporation	% Held by	ADX Group
		30 June	31 December
		2024	2023
Danube Petroleum Limited	England (U.K.)	49.18%	49.18%
Danube’s 100% owned subsidiary
ADX Energy Panonia Srl	Romania	49.18%	49.18%

Danube Petroleum Limited (Danube), via its’ Romanian subsidiary, ADX Energy Panonia, holds a 100% interest in the Parta Exploration license (including a 100% interest in the Parta Appraisal Sole Risk Project) and a 100% interest in the Iecea Mare Production license.

44

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

A D X E N E R G Y L T D

12. Non-controlling Interests - continued Non-controlling Interests Opening balance as at 1 January Share of loss for the period Share of other comprehensive income	Consolidated 30 June 2024 30 June 2023 $ $ 8,112,092 8,381,640 (45,403) (74,626) 8,193 177,701
	8,074,882 8,484,715

13. Partnership – Anshof Eocene Oil Project

Under ADX’s upper Austria AGS licence, ADX must retain 100% ownership of the licence and is required to act without restrictions from partners. ADX is permitted to establish a partnership with other parties to allow an economic participation within the licence area.

ADX has an Anshof Partnership with MND Austria a.s. (MND) and Xstate Resources Limited (ASX: XST) (Xstate). ADX is the operator and holds an 50% economic interest in the Anshof Discovery Area. MND and Xstate holds a 20% and 30% economic interest respectively. For the period prior to 8 September 2023, ADX held 80% and Xstate held 20%.

As ADX provides the Partners with an interest in the operating result of Anshof, ADX recognises 100% of all sales revenue and 100% of expenses associated with the operations and also recognises an expense representing the Partners share of operating results.

Partner Share of Operations (included as cost of goods sold) Partners share of ANS-3 operations included (note 3) Operations – ANS-3 Sales revenue Cost of Goods Sold (excluding depreciation and amortisation) Profit allocated: ADX VIE GmbH MND Austria a.s. Xstate Resources Limited	Consolidated 30 June 2024 30 June 2023 $ $ (18,177) 108,241
	1,033,350 2,308,000 (1,069,703) (1,766,795)
	(36,353) 541,205
	(18,176) 432,964 (10,906) - (7,271) 108,241
	(36,353) 541,205

45

A D X E N E R G Y L T D

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E H A L F - Y E A R E N D E D 3 0 J U N E 2 0 2 4

14. Derivative Financial Instruments

As at 30 June 2024, the following derivative financial instruments are in place:

• Fixed price swaps for 12,000 barrels of oil at a fixed Brent crude oil price for July 2024 to October 2024 at USD 85.31 per barrel.

Subsequent to year end, on 5 July 2024, ADX executed the following additional derivative financial instruments:

• Fixed price swaps for 6,000 barrels of oil at a fixed Brent crude oil price of USD 83.15 per barrel for November 2024 to December 2024 inclusive.

15. Commitments and Contingencies

Since the last annual reporting date, there have been no material changes to commitments or contingencies.

16. Related Party Transactions

There were no new related party transactions during the half-year.

17. Subsequent Events

Additional Hedging

On 5 July 2024, ADX executed further hedging transactions with Britannic Trading Limited (trading entity of BP) (“BTL”) with the following additional derivative financial instruments:

• Fixed price swaps for 6,000 barrels of oil at a fixed Brent crude oil price for November 2024 to December 2024 at USD 83.15 per barrel.

Equity Issues in Lieu of Remuneration

On 1 August 2024, ADX issued the following shares and options. These amounts were accrued in the 30 June 2024 financial statements:

• a. 188,501 shares issued pursuant to ADX’ Directors’ Share Plan, approved by Shareholders on 22 May 2024. The shares were issued to directors in consideration of remuneration elected to be paid via shares for the quarter ended 30 June 2024 ($19,604).

• b. 603,468 shares issued to ADX’s Company Secretaries and consultants in consideration of remuneration elected to be paid via shares for the quarter ended 30 June 2024 ($64,571).

• c. 196,514 Options granted to Director Ian Tchacos, as approved by Shareholders on 22 May 2024. The options were granted in consideration of consultancy fees remuneration elected to be paid via options for the quarter ended 30 June 2024 (value $20,437). The options have a nil exercise price and expire on 31 July 2028.

No other matter or circumstance has arisen since 30 June 2024 that has significantly affected or may significantly affect the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity, in subsequent financial years.

46

==> picture [126 x 50] intentionally omitted <==

ADX ENERGY LTD

INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of ADX Energy Ltd

Conclusion

We have reviewed the accompanying half-year consolidated financial report of ADX Energy Ltd (“the Company”) and its controlled entities (“the Group”) which comprises the consolidated statement of financial position as at 30 June 2024, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the half-year ended on that date and notes to the financial statements, including material accounting policy information, and the directors’ declaration.

==> picture [77 x 51] intentionally omitted <==

In.Corp Audit & Assurance Pty Ltd ABN 14 129 769 151

Level 1 6-10 O’Connell Street SYDNEY NSW 2000

Suite 11, Level 1 4 Ventnor Avenue WEST PERTH WA 6005

GPO BOX 542 SYDNEY NSW 2001 T +61 2 8999 1199 E team@incorpadvisory.au W incorpadvisory.au

Based in our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of the Group is not in accordance with the Corporations Act 2001 , including:

• a) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial performance for the half-year ended; and

• b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report performed by the Independent Auditor of the Entity . Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (“the Code”) that are relevant to our review of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 , which has been given to the directors of the Company.

47

Liability limited by a scheme approved under Professional Standards Legislation

==> picture [126 x 50] intentionally omitted <==

ADX ENERGY LTD

INDEPENDENT AUDITOR’S REVIEW REPORT (continued)

Responsibilities of the Directors for the Half-Year Financial Report

The directors of the Company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the halfyear financial report to be free from material misstatement, whether due to fraud or error.

Auditor’s Responsibilities for the Review of the Half-Year Financial Report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 30 June 2024 and its performance for the half-year ended on that date and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

In.Corp Audit & Assurance Pty Ltd

==> picture [79 x 39] intentionally omitted <==

Graham Webb Director 13 September 2024

48