ADX Energy Ltd announces the completion of a placement to raise $750,000. The placement consists of 75,000,000 new shares at 1.0 cent per share to raise gross proceeds of $750,000. The placement is unconditional and expected to settle on 4 December 2018.

One free attaching unlisted Option (exercisable at $0.02 each on or before 31 December 2019) will be provided for every three (3) Shares subscribed for and issued under the placement.

The new Shares and Options will be issued under ADX’s placement capacity under ASX Listing Rule 7.1.

The funds raised in conjunction with the Company’s current cash resources will primarily be used to continue the funding of the Company’s ongoing work program to obtain the ratification of the permit containing the Nilde Oil Field Development Project offshore Italy, secure funding for the appraisal of the Company’s Dougga gas condensate discovery offshore Tunisia, ongoing operational planning work in relation to the upcoming Parta Appraisal Program as well as to augment ongoing working capital requirements.

Parta Appraisal Drilling Funding - Onshore Romania

ADX Energy also announces that Reabold Resources Plc has agreed to exercise its option to subscribe for 375,940 ordinary fully paid shares in the capital of Danube Petroleum Limited (1) by paying £375,940 to Danube pursuant to the subscription agreement date 1 December 2017 (“Subscription Agreement”). The additional funding will be utilised for the drilling of the Parta Appraisal wells in the first quarter of 2019.

As previously announced by ADX on the 24th of September 2018, Reabold completed Tranche 2 funding of £1,127,819 under an agreement to invest a total of £1,503,759 in the Danube to provide funding for the first appraisal well. Following the exercise of this option to fund a further £375,940, Reabold now holds a 33% shareholding in Danube with the remaining 67% held by ADX.

Under the terms of the Subscription Agreement, ADX has committed to either invest directly or source investment from a third party for £375,940 on the same terms as Reabold’s investments. The timing of this investment by ADX is being discussed by the parties in conjunction with potential other funding options by both parties for the drilling of a further Parta Appraisal well.

(1) ADX will now hold a 67% shareholding in Danube Petroleum Limited (Danube). The remaining shareholding in Danube is held by Reabold Resources Plc. Danube via its’ Romanian subsidiary, ADX Panonia, holds a 50% 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.