Australis Oil & Gas (ATS) Trading Update summary

Operational and financial performance

• Sales volumes reached 62,000 barrels, up 3% from Q3, but lower oil prices led to a 2% decrease in sales revenue to $4.5 million.

• Field Netback improved 8% to $1.8 million, with lower operating costs offsetting revenue decline.

• Adjusted EBITDA rose to $0.8 million, aided by cost reductions and a $0.2 million US COVID employee retention credit.

• Net debt decreased 19% to $2.2 million, with total debt at $8.4 million and cash balance at $6.2 million.

• 2024 saw only six workovers, a record low since Australis assumed operatorship.

Asset position and reserves

• Holds 48,000 net acres in the TMS Core, with 83% held by production and about 160 net Tier 1 future drilling locations.

• Year-end 2024 PDP reserves stand at 1,624 Mbbls with an NPV(10) of $38 million, down 18% from 2023.

• 2P + 2C mid-case recoverable estimate is 65 MMbbls, with contingent resources subject to securing a development partner.

• Contingent resources decreased due to a 22% reduction in TMS acreage, now at 62.6 MMbbls (2C).

• Technical adjustments and produced volumes were main drivers of reserve reductions.

Hedging and capital management

• Q4 hedging resulted in a modest $0.03 million gain, with 72% of net sales volume hedged.

• WTI swaps and collars in place through 2026, with Q1 2025 swaps at $69/bbl and collars protecting $48–$83/bbl.

• Facility A loan at $5.0 million and Facility C at $3.4 million, with full repayment of Facility C scheduled over 15 months.

• No new leases acquired in Q4; 1,000 acres expired, but company confident in renewing targeted acreage when funded.