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ADX Energy (ASX:ADX) raises $2.55m for Austrian projects

ASX News, Energy, The Market Online Deal Room
ASX:ADX      MCAP $50.46M
03 August 2022 12:44 (AEST)

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ADX Energy (ADX) has raised $2.55 million through a share placement to accelerate exploration progress on its Austrian projects.

The company will issue 425 million new shares at 0.6 cents per share to private investors to raise the funds.

For every two new shares subscribed for, investors will receive one attaching option exercisable at 1.3 cents and expiring in two years.

Executive Chairman Ian Tchacos said the company was encouraged by the “strong investor appetite” for the capital raise despite challenging market conditions.

“While the company is essentially self-funding from its existing oil and gas production in the Vienna basin, these funds enable ADX to accelerate its drilling programs in Upper Austria,” Mr Tchacos said.

“Given the supply chain issues in most jurisdictions and the critical demand for energy in Europe, it is very important for ADX to secure the required materials and services for its work programs as soon as practically possible to ensure we can achieve our desired growth outcomes.”

ADX said the funding would assist with its activities in Austria, including fresh drilling programs and the purchase of long lead items for the Welchau gas project and the Anshof-2 development well.

Additionally, the funds will enable the Anshof-3 oil discovery well to begin production and help advance the Vienna basin green hydrogen production and storage project.

Shares in ADX Energy were trading 12.5 per cent lower at 0.7 cents at 12:25 pm AEST.

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