Metgasco : Cervantes-1 Operations Update

• Ensign 970 rig equipment mobilisation and rig-up close to completion
• Well spud anticipated within the next 24 hrs
• High Impact Cervantes-1 Well targets 15.3 million barrels of oil (mmbbls) of P50 Prospective Resource (Metgasco net 4.6 mmbbls)

The Ensign 970 rig has been successfully mobilised to the Cervantes-1 drill pad location. The rig and associated equipment have been assembled and are undergoing final pre-spud checks. It is anticipated that the Cervantes-1 well will commence drilling the 17 ½" hole within the next 24 hours.

The Cervantes oil prospect is on trend with the Cliff Head, Jingemia and Hovea oil fields. The structure is a high side fault trap similar to other fields in the basin (see figure 1 below). The well will target Permian sandstone reservoir targets which have been prolific producers in the Perth Basin. The Cervantes-1 well is designed as a moderately deviated well to be drilled to a depth of circa 2600m MDRT intersecting the Dongara, Kingia and High Cliff Permian reservoirs.

As previously announced by Metgasco on 10 September 2019, Cervantes is assessed to contain Gross recoverable Prospective Resources (P50) of 15.3 million barrels of oil (4.6 million barrels net to Metgasco).

The Cervantes-1 well is being drilled by the L14 Cervantes Joint Venture (CJV) comprising Metgasco (30% and project manager), Vintage Energy Ltd ("Vintage") (30%) and RCMA Australia Pty Ltd ("RCMA"), (40% and operator). Metgasco is earning its stake in any Cervantes discovery in the targeted Permian reservoirs through funding 50% of the costs of Cervantes-1 (with Vintage funding the remaining 50% to earn its stake) and is acting as project manager and technical advisor to the joint venture.