Australis Oil & Gas (ATS) Trading Update summary

Operational highlights

• Holds 53,800 net acres and 185 net Tier 1 future drilling locations in the TMS core, with 74% of acreage held by production.

• Produced 64,431 barrels (WI) in Q2 2024, a 4% decrease from Q1, but operated WI production volumes rose 5%.

• Completed a successful workover at Taylor 27H-1, which outperformed expectations.

• No significant downtime except for minor power outage-related shut-ins.

• Lease position decreased by 4,900 net acres due to legacy lease expiries; 6,800 net acres set to expire in 2024.

Financial performance

• Sales revenue remained steady at US$5.2 million, as higher realized prices offset lower volumes and increased hedge losses.

• Field Netback was US$1.9 million, unchanged from Q1, with lower operating costs supporting margins.

• Adjusted EBITDA improved to US$0.7 million, reflecting reduced G&A and operating costs.

• Cash balance at quarter end was US$7.7 million, down 3% from Q1; net debt reduced to US$3.6 million.

• Total debt under the Macquarie Credit Facility decreased by US$0.7 million to US$11.3 million.

Hedging and risk management

• Realized oil price hedging losses increased to US$0.19 million due to higher WTI prices.

• Q2 2024 hedges covered 75% of net sales, with a mix of zero-cost collars and swaps protecting downside prices.

• Additional WTI ZCC hedge contracts executed for 1,000 bbls/month from Aug 2025 to Apr 2026, with downside protection at US$60/bbl.

• Current hedge book provides floor prices ranging from US$54 to US$69/bbl through 2026.