Ann: Welchau Gas Exploration Well Update - Report No 3, page-5

Yes, we must wait for the next report, within the next days this week. Perhaps even early week when ADX decides to send another report before logging. Later when ADX decides to report after logging and with a first interpretation. The planned coring at around 1,200 meters could take another 24-48 hours.

This 3rd report delivers some hints for a now improved probabity to find a gas reservoir. So this 3rd report is not dissapointing so far.

The 9 ⅝ inch casing has been set in a clay and siltstone section (Lunz Formation) for
well integrity that may also provide a seal for an underlying reservoir.

 Minor hydrocarbon shows were encountered in the carbonate formations. Formation
gas shows have increased from 0.0099% to 0.1765% primarily for methane as well as
ethane and propane also measured upon entering the Lunz Formation where 9 ⅝ inch
casing has been set.

There could be a sealing cap rock (see: clay, Lunz, at 90 meters I asume) and below this caprock there are hydrocarbons shows in the carbonate. At 1180 meters there could be another sealing Claystone (dark grey in the image) . Hopefully in the deeper Steinalm Formation we find the reservoir with gas, good porosity, good permeability, fractures, good thickness. Fingers crossed and as long as ADX, Red and the other oilfield service companies do not have technical problems we soon will know if the Welchau 1 is a successfull exploration well or not.





Obviously some punters speculate on prespud and pre drilling results and sold already. But can expect that the share price will make the big movement when we know if successfull or not successfull.