Key Highlights

• ADX Energy (ASX:ADX) has submitted a third exploration permit application named d 370 C.R-.AU to the Italian Ministry of Environment and Energy Security, covering 517 km² in the Sicily Channel, offshore Italy, proximal to the Company's existing C.R 150.AU Exploration Permit.

• The third application follows two previously announced applications (d 368 C.R-.AU and d 369 C.R-.AU) submitted on 19 August 2026; the combined area of all three applications plus the existing 346 km² C.R 150.AU permit totals approximately 1,650 km².

• An independent review by RISC Advisory in July 2026 confirmed the Miocene-aged Terravecchia Formation as a valid biogenic gas play in the Sicily Channel, supported by offset well gas shows and analogous discoveries at the onshore Lippone-Mazara Terravecchia gas field and the offshore Pliocene Argo-Cassiopea fields.

• The application process includes a 3-month competition window from European Union Official Journal publication, after which technical reviews by UNMIG and CIRM are required, followed by an environmental impact assessment process — meaning permit grant timelines extend across multiple regulatory stages.

ADX Energy (ASX:ADX) Builds Sicily Channel Gas Acreage with Third Permit Application

ADX Energy Ltd (ASX:ADX) has announced the submission of a third exploration permit application in the Sicily Channel, targeting the same Miocene-aged Terravecchia Formation biogenic gas play that underpins its existing licensed acreage in the region. The application, designated d 370 C.R-.AU, covers an area of 517 km² and was published in the Official Hydrocarbon Bulletin (BUIG) of August 2026, issued on 2 September 2026. The application has been submitted by Audax Energy, ADX Energy's wholly-owned Italian subsidiary, to the Italian Ministry of Environment and Energy Security.

Acreage Position Context

The third application adds to the two exploration permit applications previously announced on 19 August 2026, designated d 368 C.R-.AU and d 369 C.R-.AU. All three applications are proximal to ADX's existing C.R 150.AU Exploration Permit, which covers 346 km² and in which ADX holds a 100% interest. The combined area of the three new applications and the existing permit totals approximately 1,650 km², representing a material expansion of ADX's acreage footprint within the Sicily Channel Terravecchia gas play. The spatial clustering of the applications around the existing permit suggests a deliberate strategy of consolidating a contiguous or near-contiguous acreage position across the interpreted play fairway.

The Terravecchia Formation Biogenic Gas Play

The geological rationale for the acreage expansion has been substantiated by a recent independent review by RISC Advisory Pty Ltd, published in July 2026. RISC concluded that the Miocene-aged Terravecchia Formation represents a valid biogenic gas play in the Sicily Channel, based on an analysis of regional geology, offset wells with gas shows, and analogous discoveries in the area. Specifically, RISC cited the nearby onshore Lippone-Mazara Terravecchia gas field and the offshore Pliocene Argo-Cassiopea gas developments as analogous systems supporting the play concept.

RISC noted that in offset wells surrounding the existing ADX permit, sandstones developed within the dominantly shale-hosted Terravecchia Formation frequently exhibited elevated mud gas shows during historical drilling campaigns. The presence of elevated mud gas shows in offset wells is a meaningful exploration indicator, as it suggests the presence of Hydrocarbons migrating through or trapped within the formation, though it does not confirm commercial accumulations. The Terravecchia Formation's biogenic gas origin — where gas is generated by microbial activity rather than thermal maturation of organic matter — is a characteristic of the play type that influences both the gas composition (predominantly methane) and the geological conditions required for viable accumulations.

Italian Regulatory Application Process

The regulatory pathway for the d 370 C.R-.AU application follows the same multi-stage process as the two previously announced applications. Following publication in the Official Journal of the European Union, a three-month competition window opens during which other operators may submit competing applications for the same acreage. If no competing application is received, the application then requires technical opinions from two bodies within the Ministry of Environment and Energy Security: UNMIG (the regional technical office for hydrocarbon exploration and production oversight) and CIRM (the Commission for Hydrocarbons and Mineral Resources, a technical advisory body).

Within 90 days of the competition period closing, Audax Energy must submit a request for an environmental impact assessment (EIA) to the relevant authority and notify the Ministry. Where competing applications are received, the Ministry, after consulting CIRM, selects among applicants based on the validity and novelty of exploration objectives, the completeness and timelines of the proposed work programme, and the technical competence and financial capacity of the applicants. The multi-stage nature of this process means that permit grants in Italy typically require an extended timeframe, and investors should not anticipate near-term outcomes from these applications.

Conclusion

ADX Energy's (ASX:ADX) submission of a third Sicily Channel permit application reinforces the Company's commitment to building a substantial position within the Terravecchia biogenic gas play. With approximately 1,650 km² of combined acreage across the existing permit and three pending applications, the Company has assembled a potentially meaningful exploration footprint validated by an independent play assessment from RISC Advisory. However, the Italian regulatory process involves multiple sequential stages — competition periods, technical reviews, and environmental assessment — meaning that permit grants are subject to extended timelines and are not assured. ADX has indicated it will provide updates as the application process advances for all three Sicily Channel permit submissions.