Australis Oil & Gas (ATS) Investor Presentation summary

Market overview and industry trends

• US unconventional oil production has surged since 2010, with shale accounting for 81% of lower 48 onshore output in 2024.

• Permian, Eagle Ford, and Bakken dominate, but Eagle Ford and Bakken are mature with declining or plateaued production.

• Permian growth has plateaued, and consolidation has driven up acquisition costs for new drilling locations.

• Well performance in established plays is decreasing, with higher breakeven costs and operational challenges.

• Industry is shifting focus to earlier-stage and previously overlooked plays due to inventory constraints.

Tuscaloosa Marine Shale (TMS) background and opportunity

• TMS is a Cretaceous marine shale in Louisiana/Mississippi, similar in age to Eagle Ford, with ~14 million acres.

• Australis holds ~47,500 net acres in the TMS Core, with 160 net future well locations and a unique land database.

• TMS Core has been delineated through production and subsurface analysis, showing Tier 1 oil productivity.

• The play benefits from existing infrastructure, premium crude pricing, low royalties, and supportive regulation.

• TMS Core is substantially de-risked, with validated models, historical data, and proven well designs.

Well performance, economics, and scalability

• Updated type curve shows EUR of 538 Mbbls per well, with 75 bbls/ft and 95% oil content.

• Base case well cost is $10.4M, with IRR of 33% at $65/bbl WTI; development case reduces cost to $9.6M and IRR to 48%.

• Payout periods are 23 months (base) and 17 months (development), with significant upside from longer laterals and cost reductions.

• TMS wells achieve premium pricing to WTI and benefit from low transportation and production costs.

• Australis controls the largest contiguous lease position in the TMS Core, with potential to expand by 100,000 acres.