Attis Oil & Gas : Update on Fort Worth Field and Asset Sale Process

19 February 2020

Attis Oil & Gas Limited

('Attis' or the 'Company')

Update on Fort Worth Field and Asset Sale Process

Attis Oil and Gas Inc, is a 50% JV owner with APEG Palo Pinto LP. ('APEG') of ATAP Oil & Gas, LLC, the owner of the Fort Worth Field in Texas (the 'Field'). Attis Operating Inc is the non-owning Operator of the Field that currently produces approximately 320 million cubic feet of gas and 5 barrels of oil per day, being 60 BOE (all figures gross). The Fort Worth Field, TX has 98 wells across 5,100 acres and is operated by Attis.

The Board of Attis advises that it has now notified APEG that it will formally exercise its rights under the Joint Operating Agreement on the Field (the 'JOA') given APEG's failure to meet its financial obligations as a JV partner. APEG has not paid its share of costs associated with the Field, including 50% of the bond posted with the Texas Railroad Commission and approved work program and budget. The Company has made numerous attempts to settle the outstanding issues, including agreement for APEG to pay historic taxes associated with the Field. Due to continued failure by APEG to pay its share of the costs, the Company issued a notice of default to APEG under the JOA in an attempt to recover a total of approximately $250,000 of past due costs. The effect of the issue of the default notice is that Attis is entitled to 100% of the revenues from the Field, although a continuation of historically low natural gas prices in the US (currently at a 20 year low) have resulted in the Field operating at a loss in recent months.

Given the factors above and as notified by the Company in its announcement of 2 January 2020, the Company is considering its options regarding a disposal of its interest in the Field. The Board remains conscious that, if it were to take a decision to abandon any of the wells on the Field, as the Operator it would remain liable for the plugging and abandonment ('P&A') liabilities which are currently estimated at approximately $25,000 per well.

Update on Asset Sale Process

The Company announced on 11 February that it had sold its interest in the Bivins 115 Lease in the Red Cave formation in the Texas Panhandle for a consideration of US$50,000 paid in cash. The Company acquired the Bivins 115 Lease in October 2019 for a consideration of US$23,000.

The Company has received an offer for the purchase of Northcote Cleveland, LLC., its wholly owned subsidiary, that holds the leases comprising the Zink Ranch Field for $225,000. The Bureau of Indian Affairs (the 'BIA') is in the final stages of approval of the assignments of the leases to Northcote Cleveland, LLC. The Company plans to close on the sale as soon as practical following final assignments.

The Company is evaluating offers for the sale of the Austin Field, but has not approved any of them at this time. Any sale of the Austin Field is conditional on the approval by the holders of a loan note dated 21 October 2019 in the amount of GBP 420,000 with a maturity date of March 21, 2020 (the 'Loan'). The Austin Field is used as collateral for the Loan and subject to a security interest filed with the Texas Secretary of State. Furthermore, the Company expects that the sale of the Austin Field would also be subject to Shareholder approval pursuant to AIM Rule 15.

**ENDS**

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About Us

Attis Oil & Gas Ltd is an AIM-traded (London Stock Exchange) North American-based energy company. It is actively pursuing a primary recovery oil strategy focused on re-stimulating wells within mature producing basins with immediate cash flow from projects that are shallow, low risk with low levels of capex and infrastructure already in place. Attis is also seeking to develop new drill opportunities within both existing & new acreage.