Auctus sticks 20c target on ADX as pivotal 2026 approaches
Auctus Advisors’ 20c price target for ADX Energy is based on its producing assets, near- term prospects and Italian permit.
Special Report: Auctus Advisors has placed a 20c price target on ADX Energy – well above the current share price of 2.3c – saying it reflects current Austrian producing assets, near-term shallow drilling gas targets and other exploration including the recently awarded Sicily Channel permit.
- Auctus sets 20c price target on ADX against current 2.3c share price
- Target reflects current producing assets, drilling the shallow gas play, planned Welchau-1 testing, and the Italian permit’s potential
- The giant resource potential of Sicily Channel permit also considered in price target
Earlier this month, the company increased the mean prospective resource estimate for its C.R 150.AU permit in the Sicily Channel, offshore Italy, by 31% to 619 billion cubic feet of gas.
The revision incorporates new data available since the last ASX reporting date in August 2022 from the nearby Lippone-Mazara onshore producing gas field, recovery factor assumptions from the recently developed Argo, Cassiopea and Gemini fields as well as the inclusion of shallow gas reservoirs encountered in historical oil wells within the permit.
It also includes data from three new prospects/leads within the expanded permit area not included in the previous August 2022 evaluation.
While originally considered for its oil potential, interest in the shallower natural gas potential of C.R 150.AU has strengthened tremendously.
The existence of gas has been proven by gas shows observed at intervals of 512m, 657m and 812 when the historical Nilde-2 exploration well was drilled to test deeper oil reservoirs. Gas has been identified in multiple prospects from seismic responses in existing 2D seismic data.
Further support has come from the recent development of Eni’s nearby Argo Cassiopea gas field, which has about 350 billion cubic feet of gas reserves. New 3D seismic has confirmed stacked gas reservoirs in a similar geological setting to ADX C.R 150.AU permit.
Growth could be on the cards with ADX Energy (ASX:ADX) visiting Eni’s seismic data room in January and planned move to acquire further seismic data.
These steps are expected to refine the resource assumptions and potentially expand the portfolio with new prospects and leads. Following the evaluation of additional date ADX intends to commission a third party Independent Resources Report.
Valuation
Auctus says its unrisked valuation of 8c per share is based on its Austrian 2P reserves and the shallow gas play drilling targets, assuming ADX retains 50% working interest.
Auctus notes its Risked NAV of 20c per share reflects producing assets, the shallow gas play, renewed testing of Welchau-1 and the Italian permit based on anticipated farm-out terms.
ADX is preparing to drill the low risk HOCH-1, GOLD-1, SCHOE-1 shallow gas wells from February 2026 that have the potential to quickly boost the company’s biogenic gas (99% methane) output.
Drilling and environmental permits are expected to be secured for the drilling program before the end of 2025 with well site construction starting in January 2026.
ADX is also preparing to resume testing in January 2026 of some of the remaining three (of four) intervals at its Welchau-1 well in Upper Austria to determine its oil and gas potential.
This article was developed in collaboration with ADX Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Originally published as Auctus sticks 20c target on ADX as pivotal 2026 approaches
