Sacgasco : June 2022 Quarterly Activities & Cashflow Report

For personal use only

Sacgasco Limited

ABN 83 114 061 433

Unit 14, 210 Bagot Road, Subiaco, WA, 6008.

JUNE 2022 QUARTERLY ACTIVITY REPORT

HIGHLIGHTS

• Philippines - Exploration and Development

1. One year since Acquired Nido Assets in Philippines

1. Nido and Sacgasco over 22 years of exploring and producing Oil and Gas o JVs simplified and Farmouts implemented
   o Nido (Sacgasco) Appointed Technical Operator of Cadlao

1. Capital raised to purchase well equipment for 2 wells Nandino and Cadlao

1. Long Lead Items for drilling secured

1. Production Alliance agreed with Asian-based production and testing specialists o Cadlao Extended Well Test (EWT) planning underway
   o 6.2 million barrels oil Cadlao 2C Contingent Resources Certified (100%)
   o 27 million Barrels of recoverable oil in Nandino Mean Prospective Resources Certified (100%) from 75 million barrels of mean oil in place.
   o Nido Limestone Reservoir Studies coming to Conclusion
   o 85% of costs of drilling Nandino Prospect Covered by TG World (Blue Sky) Farmout

1. Drillship procured for Philippines Drilling

• 1. New venture opportunities identified and being pursued
• North America - Producing Properties and Development

1. Producing properties funding normal exploration activity and G&A for the quarter

1. Total net production from Canadian assets (before royalty) of 41,892 BOE, a 12%

increase from the previous quarter

1. Net production receipts of A$1.67 million (after production costs), an increase of 46%

from the previous quarter

1. Three Development wells drilled in Alberta, All Producing o Drilling program funded by Canadian cashflow
   o SGC current share of Production in Canada is 453 BOEPD- over 50 shut in wells to be reactivated with a goal of an additional 180 BOPD net to Sacgasco.
   o Gas flow optimisation including search for alternatives to monetise Borba gas o High oil and gas prices supporting cash flow

Sacgasco's Acreage in the Northwest Palawan Basin, Philippines

Part of LLI purchased for Drilling in the Palawan Basin

For personal use only

SC54 (SGC (Nido) Operator)

Sacgasco's wholly owned subsidiary, Nido Petroleum Philippines Pty Ltd. ("Nido"), is the Operator of SC54. An additional 15% interest was acquired from the receiver appointed to handle the default of participant Halo BV SC54 ("Halo") in SC54. Nido paid US$126,624 to remedy the default and henceforth have unencumbered title to an additional 15% interest in SC54, which includes the Nandino Oil Prospect and Nido Limestone hosted oil discoveries at Tindalo, Nido 1X and Yakal.

Currently the most attractive Prospect in SC54 is the Nandino Oil Prospect. Nandino lies updip and on-trend with 4 oil discoveries within SC54. A total of over 119 metres of oil column and strong oil shows are interpreted in two previous tests of the greater Nandino structure.

Nido Carbonate Depth Map

Prospective Resources in the Nandino Prospect have been endorsed by RISC Advisory (RISC). (Refer ASX announcement dated 3 March 2022)

Note 1: The estimated quantities of hydrocarbons that may potentially be recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially movable hydrocarbons.

Nido and its JV Participants elected to proceed to Sub-Phase 7 will be for a period of 1 year from August 2022 and includes a commitment to drill one well. TG World (Blue Sky) has elected to pay 85% of the costs of the planned Nandino well to earn an additional 36.25% participating interest from Nido.

For personal use only

Subject to DOE approval, the resulting working interests in SC54 are:

* Subject to DOE approval and completion of Nandino drilling

# Halo SC54A BV ("Halo"), previous holder and owner of a participating interest in SC 54, defaulted on its obligations in SC 54 by failing to pay, despite repeated demands, its share in joint expenses. As a result of Halo's default, its previous participating interest is now held by Nido (a Sacgasco subsidiary). Refer SGC ASX Announcement "Philippines Acquisition and Update" dated 14 June 2022.

SC 6B Cadlao (SGC (Nido) Technical Operator)

The Philippines Department of Environment and Natural Resources (DENR) delivered a certificate of Non-Coverage ("CNC") dated 11 May 2022, for Service Contract No ("SC") 6B Cadlao Field Appraisal Project, and Work Program and Budget approval for SC 54 (Nandino Area).

Sacgasco's wholly owned subsidiary, Nido Petroleum Philippines Pty Ltd. ("Nido"), is the designated Technical Operator of SC 6B. Receipt of the CNC will allow Nido to conduct surveys, drill exploration and appraisal wells and extended well test(s) in SC 6B which covers the Cadlao Oilfield and the east Cadlao Oil Prospect. Application is being made for ancillary approvals required for other aspects of the drilling program.

The Cadlao Field previously produced 11.1 million barrels of oil between 1981 and 1991 and at the time production ceased the field was still producing 950 bopd (separated from 5,900 barrels of produced liquid per day) from 2 subsea wells. Initial production from the discovery well, Cadlao-1A, was over 6,000 bopd.

A proposal to drill a new well aimed to recover oil updip from the prolific Cadlao 1 well and to then conduct an Extended Well Test ("EWT") to maximize reservoir knowledge and reduce risks associated with redevelopment of the field, as well as provide early cashflow has been approved by Joint Venture participants and is awaiting the DOE approval.