Australis Oil & Gas : Annual Report to shareholders and Appendix 4E

For personal use only

For Immediate Release

ASX Announcement

24 February 2022

2021 Annual Report and Audited Financial Statements

Australis Oil & Gas ("Australis" or "Company") is pleased to provide its 2021 Annual Report including the audited consolidated financial statements for the year ended 31 December 2021.

Throughout 2021 Australis focused on managing its existing TMS production in a safe manner to maximise productivity and minimise costs, whilst maintaining the valuable undeveloped asset position in the play. The Company achieved many of the financial goals established at the end of 2020 as it emerged from the volatile and unprecedented first year of the global pandemic. Australis continued to safeguard its TMS asset through targeted leasing and by strengthening its balance sheet and increasing liquidity via an equity raising and continued cash generation from operations, whilst maintaining reductions in field-based operating costs and G&A. As in 2020, Australis achieved positive EBITDA for each quarter during 2021 despite the settlement of oil price hedges in 2021 losing US$5.4 million offsetting the prior year's profit from hedges of US$4.7 million.

These results, together with improving US oil and gas industry sentiment, sustained higher oil prices and increasing third party activity in the TMS core area all contribute to improved confidence and broaden the appeal of the Company's TMS asset for partnering opportunities. The Company remains patient but confident in sourcing the appropriate partner or partners for further field development.

A summary of financial and operating results for the year are as follows:

Financial Results 2021- (US$)
Gross revenue from oil sales (before royalties& hedges)	$28.3 million
Loss from hedging	$(5.4) million
Average realised sales price (including hedges)	$56/bbl
Field Netback* (US$)	$8.5 million
Field Netback (Working Interest)* (bbl)	$20.75/bbl
EBITDA*	$2.7 million
Net (loss) after taxation	$(2.4) million
Year end cash position	$9.3 million
Total Facility borrowings	$16 million
Working capital (excluding Macquarie debt repayments)	$4.3 million
Operating Results 2021
Oil sales (Working Interest)	410,000 bbls
Net oil sales (after royalties)	332,000 bbls
TMS year end independent PDP reserves (Net)1	3.0 MMbls
Year end independent mid case(2C) contingent resources1	149.0 MMbbls
Acreage leased within the TMS Core	~98,000 net acres
Acreage leased and HBP within the TMS Core	38,100 net acres

*Field Netback and EBITDA are considered non-IFRS measures. Please refer to Non-IFRS Financial Measures below.

The 2021 Annual Report and Appendix 4E is attached.

AUSTRALIS OIL & GAS LIMITED

ABN 34 609 262 937

Ground Floor, 215 Hay Street Subiaco WA 6008 • PO Box 8225 Subiaco East WA 6008
T [phone] • F [phone]	www.australisoil.com

For personal use only

Australis Oil & Gas Limited advises that in accordance with Clause 6.1 of the Australis constitution and ASX Listing Rule 3.13.1:

1. The 2022 Annual General Meeting (AGM) will be held at 11.00 am (WST) on Wednesday 25 May 2022, and
2. the closing date for the receipt of nominations from persons wishing to be considered for election as a director is 30 March 2022. Any nominations must be received in writing no later than 5.00 pm (WST) on 30 March 2022 at the Company's registered office.

Shareholders of the Company (Shareholders) will be advised of further details regarding the AGM in a separate Notice of Meeting, which will be provided to Shareholders in April 2022. The Notice of Meeting will also be available on the ASX Company Announcements Platform and on the Company's website at www.australisoil.com.

This ASX announcement was authorised for release by the Australis Disclosure Committee.

For further information, please contact:
Ian Lusted	Graham Dowland
Managing Director	Finance Director
Australis Oil & Gas Limited	Australis Oil & Gas Limited
[phone]	[phone]

About Australis

Australis (ASX: ATS) is an ASX listed upstream oil and gas company seeking to provide shareholders value and growth through the strategic development of its quality onshore oil and gas assets in the United States of America.

The Company's acreage within the core of the oil producing TMS contains 3.0 million bbls of producing reserves providing free cash flow and approximately 150 million bbls of mid case 2C recoverable oil.

The Company was formed by the founders and key executives of Aurora Oil & Gas Limited, a team with a demonstrated track record of creating and realising shareholder value.

Footnotes

1. All estimates and risk factors taken from Ryder Scott, report prepared as at 31 December 2021 and generated for the Australis concessions to SPE standards. See ASX announcement released on 7 February 2022 titled "Reserves and Resources Update Year End 2021". The analysis was based on a land holding of 98,000 net acres. Australis is not aware of any new information or data that materially affects the information included in the referenced announcement and all the material assumptions and technical parameters underpinning the estimates in the original announcement continue to apply and have not materially changed. Ryder Scott generated their independent reserve and contingent resource estimates using a deterministic method which is based on a qualitative assessment of relative uncertainty using consistent interpretation guidelines. The independent engineers using a deterministic incremental (risk based) approach estimate the quantities at each level of uncertainty discretely and separately.

Non-IFRS Financial Measures

References are made within this report to certain financial measures that do not have a standardised meaning prescribed by International Financial Reporting Standards (IFRS). Such measures are neither required by, nor calculated in accordance with IFRS, and therefore are considered Non-IFRS financial measures. Field Netback and EBITDA are Non- IFRS financial measures commonly used in the oil and gas industry. Non-IFRS financial measures used by the Company, including Field Netback and EBITDA, may not be comparable with the calculation of similar measures by other companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS.

EBITDA represents net income /(loss) for the period before income tax expense or benefit, finance costs, depletion, depreciation and amortisation charges and impairment provision.

The following table reconciles net loss after tax to EBITDA:

For personal use only

	31 December 2021
	US$'000
Net (loss) after tax	(2,408)
Adjustments:
Depletion	1,641
Depreciation - production equipment	1,300
Depreciation	296
Net finance expenses	1,906
EBITDA	2,735

FIELD NETBACK

Field Netback represents oil and gas sales net of royalties, production and state taxes, inventory movements, hedging gains or losses, field based production expenses but excludes depletion and depreciation.

GLOSSARY
	Term	Definition
	TMS	Tuscaloosa Marine Shale
	bbl(s)	Barrel(s) of oil
	MM	Millions
	PDP	Proved Producing Reserves
	2C	Most Likely Contingent Resource
	TMS Core	The Australis designated productive core area of the TMS delineated by production history
	HBP	Leased minerals deemed held by production by an existing producing well.

For personal use only

24 February 2022

APPENDIX 4E

FINANCIAL YEAR ENDED 31 DECEMBER 2021

AUSTRALIS OIL & GAS LIMITED (ASX: ATS)

ABN or equivalent company reference

34 609 262 937

This information should be read in conjunction with the Australis Oil & Gas Limited 2021 Annual Report (which contains the 2021 audited Financial Report and other information required for Appendix 4E)

Results for Announcement to the Market
	Revenue from ordinary activities	Decreased by 12%(1) from US$26.1 million in 2020 to
		US$22.9 million in 2021
	Loss from ordinary activities after tax	Decreased by 98%(1)	from a loss of US$125.2 million
	attributable to members	for 2020 to a loss of US$2.4 million for 2021
	Net loss for the period attributable to	Decreased by 98%(1)	from a loss of US$125.2 million
	members	for 2020 to a loss of US$2.4million for 2021
	An explanation of the results is contained within the 2021 Annual Report which can be found on the ASX website
	or the Australis website at www.australisoil.com
	(1) Comparisons are made to the financial year ended 31 December 2020
	Dividends
	No dividends have been paid or proposed for the year ended 31 December 2021 (2020: nil)
	Net Tangible Asset per Security	31 December 2021		31 December 2020
		US$0.05		US$0.06
	This report is based on audited accounts

This ASX announcement was authorised for release by the Australis Disclosure Committee.

For further information, please contact either:
Graham Dowland	Julie Foster
Finance Director	Company Secretary
Australis Oil & Gas Limited	Australis Oil & Gas Limited
[phone]	[phone]

AUSTRALIS OIL & GAS LIMITED

ABN 34 609 262 937

Ground Floor, 215 Hay Street Subiaco WA 6008 • PO Box 8225 Subiaco East WA 6008
T [phone] • F [phone]	www.australisoil.com

For personal use only

A N N U A L R E P O RT

FOR THE YEAR ENDED 31 DECEMBER 2021

Australis Oil & Gas Limited ABN 34 609 262 937