Australis Oil & Gas (ATS) Trading Update summary

Operational highlights

• Holds 49,000 net acres and 165 net Tier 1 future drilling locations in the TMS Core, with 81% held by production.

• Largest acreage holder and producer in the TMS, with 89 million bbls of 2P + 2C net reserves and resources.

• Q3 2024 sales volume was 60,300 barrels, down 6% from Q2, partly due to inventory build and Hurricane Francine impacts.

• Completed two workovers safely and under budget, with only five workovers year-to-date, below budget.

• No injuries or major equipment damage from Hurricane Francine, though power loss temporarily affected production.

Financial performance

• Q3 2024 sales revenue was $4.6 million, down 12% from Q2 due to lower volumes and prices.

• Field Netback was $1.7 million, an 11% decrease from Q2; Adjusted EBITDA was $0.6 million.

• Cash balance at quarter end was $7.2 million, with net debt reduced to $2.7 million, a 25% decrease from Q2.

• Credit facility principal debt decreased by $1.5 million to $9.8 million, with repayments aligned to oil price hedge settlements.

• Oil price hedging losses were $0.13 million, lower than the previous quarter, with 77% of net sales hedged.

Strategic and business development

• Actively engaged with potential partners, with increased and more proactive interest in the TMS asset.

• Lease position decreased by 4,900 net acres due to expiry of legacy leases; 81% of current acreage is HBP.

• No new leases or extensions taken in Q3; 1,000 net acres set to expire by year-end.

• Industry trends show rising break-even prices and declining productivity in established basins, increasing interest in emerging plays like TMS.

• Optimism remains for securing a value-accretive partnership to unlock TMS development.