ADX Energy (ASX:ADX) has announced that Kepis & Pobe Financial Group Inc. have assigned their interest in the Welchau Farm-in agreement to Canadian TSX Venture Exchange listed MCF Energy.
ADX Energy says MCF Energy will have the option to fund a further 50% of the Welchau-1 well drilling expenditure to earn a 20% economic interest in the Welchau Farmin Area.
If MCF Energy exercises the option to fund the entire Welchau-1 well cost, they will hold a 40% economic interest and ADX Energy will retain a 60% economic interest in the Welchau Farmin Area.
ADX Energy says the Welchau gas prospect has best technical resources estimated at 807 BCFE (134 MMBOE) and is potentially connected to an accidental gas discovery at the Molln-1 well which was tested in 1989.
It also says the Option election date has been extended from 21 January 2023 to 28 February 2023.