Sacgasco : Nandino Drilling Update

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Sacgasco Limited

ABN 83 114 061 433

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

T +61 8 9388 2654 E info@sacgasco.com

NANDINO SC54 DRILLING UPDATE

• Farminee TG World (BlueSky Owned) has procured a drilling rig for Philippines Drilling
• SC54 Joint Venture has advised DOE of commitment to drill a well within 12 months
• Nandino Prospect targets 27 million barrels of recoverable oil from 91 million barrels of oil in place (Mean, Unrisked Prospective Resource)
• Long Lead Items for drilling secured
• TG World funding 85% of Nandino well cost

Sacgasco Limited (ASX: SGC) ("SGC", "Sacgasco" or "the Company"), is pleased to announce the plans for drilling of the Nandino Prospect in Philippines Petroleum Service Contract 54 ("SC54"), offshore Palawan, Philippines.

The SC54 participants, namely Nido Petroleum Philippines Pty Ltd ("Nido") and Yilgarn Petroleum Philippines Pty Ltd ("Yilgarn") (Nido and Yilgarn are Sacgasco 100% owned subsidiaries) and TG World (BVI) Corporation ("TG World"), a wholly owned subsidiary of Blue Sky Resources, have advised the Philippines Department of Energy ("DOE") of their intention to drill a well in SC54 in the year commencing August 8, 2022.

TG World has agreed to a farmout with Nido and Yilgarn to fund 72.5% of the drilling costs of Nandino 1 to earn an additional 36.25% participating intent in SC54 (refer Sacgasco ASX announcement "Nandino Prospect Farmout" dated 10 March 2022).

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

* Subject to DOE approval and completion of Nandino drilling

# Halo SC54A BV, 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. Refer SGC ASX Announcement "Philippines Acquisition and Update" dated 14 June 2022.

Deep Venture DP2 Drillship

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The Deep Venture is owned by Blue Sky's Indonesian subsidiary PT Angkasa Biru Servis Indonesia which has operated offshore production in Indonesia for 12 years. The drillship is currently undergoing preparation for drilling and is expected to drill Nandino as soon as practicable after requisite regulatory and corporate certifications and acceptances.

A majority of the Long Lead Items for drilling Nandino were secured by the purchase of the drilling equipment announced in Sacgasco's ASX Release "Philippines Acquisition Update" - 14 June 2022.

The Deep Venture Drillship is a Dynamically Positioned (DP 2) vessel and is currently capable of drilling in water depths from 90 metres to 1,300 metres and can provide a cost-effective vehicle for various future oil and gas operations in the Philippines.

Sacgasco Philippines Acreage Map (SC54 interest 51.25% post-farmout)

Blue Sky's President Ilyas Chaudhary commented:

"Blue Sky has procured the Deep Venture Drillship as the vessel to facilitate an extensive drilling campaign offshore the Philippines. The Drillship has many logistical advantages and can serve as a versatile platform for early production and testing over a wide range of water depths.

We are the operator of 6,000 BOE per day, including production from Sacgasco's assets in Canada, and as a large shareholder in Sacgasco and we look forward to a successful and rewarding relationship with the Nido (Sacgasco) operations in the Philippines."

www.sacgasco.comTwitter: @SacGasCo

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ABOUT NANDINO PROSPECT

• Nandino Prospect targets 27 million barrels of recoverable oil from 91 million barrels of oil in place (mean prospective resource)
• Nandino lies updip and on-trend with 4 oil discoveries within SC54 (SGC 87.5% WI)
• 119m+ oil column and strong oil shows interpreted in two previous tests of the greater Nandino structure

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.

Note 2: The resource estimates have been prepared using the probabilistic method and are presented on an unrisked basis. In a probabilistic resource distribution, P90 (Low), P50 (Best), P10 (High) estimates represent the 90%, 50% and 10% probability respectively that the quantity recovered will equal or exceed the estimate assuming a success case in the prospect.

Note 3: The resource estimates are reported as at an evaluation date of March 2022

Note 4: The Nandino Prospect lies wholly within SC54 where Sacgasco, through its subsidiaries, effectively owns a consolidated 51.25% working interest post-farmout to TG World (Blue Sky) (Subject to DOE approval and Nandino drilling)

The Nandino Prospect within Service Contract 54 (SC54) is considered the largest shallow water prospect in Nido / Sacgasco's Philippines portfolio and is delineated on 3D seismic. The Miocene aged carbonate pinnacle reef structure lies in water depths of 90 meters and is immediately updip of the Tindalo oil discovery. Out of 60 exploration wells drilled in the basin to date, 27 have led to discoveries, giving a 45% success rate.

Within SC54, a "fill-to-spill" chain of oil fields has been discovered as shown in the Figure below. The Nandino Prospect lies updip and on-trend of this "fill-to-spill" chain.