Australis Oil and Gas Limited ('Australis' or 'Company') is pleased to provide its Year End 2022 (YE2022) reserve and resource update as independently assessed by Ryder Scott Company L.P. ('Ryder Scott') with an effective date of 31 December 2022.

In 2021 Australis adopted a conservative approach to estimating its oil and gas reserves and resources, this has been continued with the YE2022 assessment which considers existing production only as a reserve and leaves any further development activity to be subject to securing a funding partner. Therefore, the YE2022 reserve and resource estimate consists of a proved, probable and possible developed reserve estimate only and no reserve estimates have been generated for undeveloped acreage.

A contingent resource estimate is provided and, as in previous years, the mid case 2C contingent resource is subject to a qualifying development plan to transition volumes to an appropriate reserve category of proved, probable and possible

Net Oil Developed Reserves

Ryder Scott made the following estimates1 of developed recoverable oil volumes, net to Australis (variance vs YE20212).

Proved - 2.50 MMbbls (-16%)

Probable & Proved - 3.14 MMbbls (-15%)

Possible, Probable & Proved - 3.95 MMbbls (-13%)

The NPV(10) of the PDP reserves is US$82 million using a flat oil price of $95.80/bbl.

Contingent Resource

Ryder Scott have made the following estimates1 of low, mid and high case contingent resources (variance vs YE20212).

1C - 21.07 MMbbls (-10%)

2C - 117.06 MMbbls (-21%)

3C - 211.98 MMbbls (-21%)

The assumptions made by Ryder Scott for contingent resource have not changed from previous reports, the reductions reflect the reduction in leased acreage only.

Australis year end 2022 reserve and resource estimates

At the effective date of the report, 31 December 2022, Australis held the rights to ~80,000 net acres within the TMS Core area of which 38,700 net acres (49%) are HBP. Australis participated as a 10% WI partner in two drilled uncompleted (DUC) wells during the year which increased the non-operated well count and also has two operated wells deemed PDNP (Proved, Developed, Not Producing) that require well intervention before they will recommence production. In total there are 31 operated wells and 17 non operated wells considered as producing and the two operated PDNP wells in this report. In 2021 Australis adopted the position for reserves reporting that it would only present an undeveloped reserves estimate when a funding partner had been secured and that any estimate would reflect the planned program. Whilst the Company has made progress with potential partners, definitive terms have not yet been negotiated and so the YE2022 report continues to reflect a developed reserve estimate only. The undeveloped acreage has been assessed as a contingent resource, reflecting the need for funding capacity before it can be reviewed as a reserve. This decision does not impact the economic potential of the play. As shown in the YE2020 reserve report, which included a modest development program, the proved undeveloped reserves were economic even at the YE2020 reserve report oil price of US$47.02/bbl. Without a development plan all recoverable oil volumes from future wells are allocated to contingent resources. The ASX and SPE compliant methodology of taking the average 1st day of the preceding 12-month period yielded an oil price of $95.80/bbl for use within the YE2022 report

TMS Net Contingent Resource reconciliation

Table 4 below summarises the change in net contingent resource estimated on 31 December 2021 and 31 December 2022.

The following key factors contributed to the changes in contingent resource.

All subsurface assumptions on in place volumes and recovery factors remained identical for both the YE2021 and the YE2022 resource estimates.

All undeveloped acreage was evaluated for contingent resource based on the decision not to consider a development plan.

During 2022 Australis carried out strategically targeted leasing, to maintain control and footprint in the play, without necessarily simply maintaining an acreage position. The net resultant reduction was from 98,000 to 79,500 net acres and this directly influences the contingent resource calculation. The 1C figure is influenced less as it is predominantly HBP acreage and the incremental acreage considered in 2C and the 3C estimate is all term lease and subject to expiry.4

Contact:

Ian Lusted

Managing Director

Australis Oil & Gas

T: +61 8 9220 8700

Graham Dowland

Finance Director

Australis Oil & Gas

T: +61 8 9220 8700

Competent Persons Statement

The reserves and contingent resource estimates provided in this announcement pertaining to the Tuscaloosa Marine Shale is based on, and fairly represents, information and supporting documentation, prepared by, or under the supervision of, Raymond Yee, P.E., who is an employee of Ryder Scott Company, L.P. an independent professional petroleum engineering firm. Mr Yee is a Professional Engineer in the State of Texas (Registration No. 81182). The reserve and resource information pertaining to the Tuscaloosa Marine Shale in this announcement has been issued with the prior written consent of Mr Yee in the form and context in which it appears.

Forward Looking Statements

This document may include forward looking statements. Forward looking statements include, but are not necessarily limited to, statements concerning Australis' planned development program and other statements that are not historic facts. When used in this document, the words such as 'could', 'plan', 'estimate', 'expect', 'intend', 'may', 'potential', 'should' and similar expressions are forward looking statements. Although Australis believes its expectations reflected in these statements are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements.

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