Australis Oil & Gas provide an update regarding the Company’s development activities in relation to its initial drilling program in the Tuscaloosa Marine Shale (“TMS”), onshore Mississippi.

• The initial well locations have been identified with permits received for 8 new drilling units.
• All planned well sites are within the Company designated TMS core and have been selected on the basis of a variety of criteria including reservoir quality, proximal well production performance and surface matters such as access roads and power.
• Australis is funded to commence the program with US$43 million in cash (as at 1 July 2018) and the recently announced credit facility with Macquarie Bank for up to US$75 million.
• The key objective of the initial drilling program is to replicate the historical well performance achieved within the TMS core in 2014 but at a 2018 well cost. In doing so the intention is to demonstrate the attractive TMS core well economics and lift the value of the 95,000 net acres Australis holds in the TMS core which represents an inventory of 350 net future well locations.
• A rig contract has been executed with Nabors Drilling for a minimum 6 well commitment and with the provision to extend after this initial program. This rig has been active in the Haynesville shale, working for a major international oil and gas company. The rig availability is subject to completion of its existing well operations. Australis has been advised that it is expected to be released before the end of September 2018 and the Company will make a further announcement once confirmed.
• Surface preparations have been underway from early July and a smaller rig commenced operations on 20 August 2018. It is contracted on a turnkey basis to drill the top-hole sections of each well to a depth of approximately 3,200 ft.