Highlights

• ADX Energy (ASX:ADX) is offering shares to eligible shareholders at 1.2 cents each on a 2-for-5 basis, seeking to raise up to approximately $5.2 million before costs.

• Each two new shares subscribed includes one free attaching quoted option exercisable at 2.5 cents and expiring 31 December 2028.

• Key use of proceeds includes drilling and completion of the GOLD-1 shallow gas well, Vienna Basin production enhancement work, and Phase 2 testing of the HOCH-1 gas discovery.

• The offer is partially underwritten for $1,000,000 by Mahe Capital Pty Ltd, which is also acting as lead manager to the offer.

ADX Energy Ltd (ASX:ADX), an Australian-listed oil and gas company with operations in Austria's Vienna Basin, has opened a renounceable pro-rata entitlement offer to eligible shareholders. The offer, priced at 1.2 cents per new share, is structured on a 2-for-5 basis and aims to raise up to approximately $5.2 million before costs. The offer is partially underwritten by Mahe Capital Pty Ltd to a minimum of $1 million, providing a floor on the capital raised. Each two new shares subscribed for carry one free attaching option, providing additional upside for participating shareholders.

Proposed Use of Proceeds

The primary allocation of the capital raised is directed at advancing ADX Energy's European gas exploration and production activities. The company has identified four key uses of funds. First, the drilling, testing and completion of the GOLD-1 shallow gas well, which represents a near-term opportunity to add production from a known gas-bearing horizon. Second, well work at the company's Vienna Basin fields aimed at enhancing existing production rates and extending field life. Third, Phase 2 production testing of the HOCH-1 gas discovery well, which follows positive initial results and represents a potential step towards commercialisation of that discovery. Finally, general exploration activities, administration costs, and the costs of the offer itself.

The Vienna Basin in Austria is a mature hydrocarbon province with established infrastructure and a supportive regulatory environment. ADX Energy's strategy of targeting low-risk gas opportunities in this setting is designed to generate near-term cash flows while maintaining a disciplined approach to capital allocation.

Offer Structure and Ineligible Shareholders

The entitlement offer is available to eligible shareholders as at the Record Date of 5 November 2026, with the offer opening on 10 November 2026 and closing on 25 November 2026. Shareholders whose registered addresses are outside of Australia, New Zealand, Singapore, the United Kingdom, and Monaco are classified as ineligible and are not entitled to participate. For ineligible shareholders, Mahe Capital has been appointed as nominee to arrange the sale of entitlements and distribute net proceeds proportionally where practicable.

Shortfall and Underwriting Arrangements

Any new shares not taken up under the entitlement offer may be applied for by eligible shareholders under a shortfall offer on the same terms. The underwriting by Mahe Capital for $1 million provides a minimum capital raise floor, reducing execution risk. The underwriter will also receive Options as part of its compensation for providing underwriting and lead managerial services. ADX Energy has committed to deploying capital into its European gas asset base, where it believes near-term drilling and production activities can generate meaningful operational progress within a defined timeframe.

Key Insights

The GOLD-1 well, the HOCH-1 Phase 2 test, and Vienna Basin production enhancement represent three near-term catalysts that the capital raised will directly fund.

The free attaching option structure extends Shareholder participation in future upside beyond the immediate offer price, without additional immediate cost.

Partial underwriting to $1 million ensures a minimum capital raise is achieved, providing the company with a funding floor even in a challenging market environment.

ADX Energy's focus on the mature, infrastructure-rich Vienna Basin reduces exploration risk compared to greenfields projects in emerging jurisdictions.