Australis Oil & Gas Limited updated on the company's recently commenced development activities in the Tuscaloosa Marine Shale onshore Mississippi. Flowback operations on both the Stewart 30H-1 and Bergold 29H-2 commenced on 29, December 2018. On the Stewart 30H-1 all 19 stage isolation plugs were drilled out and a 2 7/8" completion tubing string was run into the well ahead of commencing production. The initial production is being carefully managed but is encouraging and in line with expectation. It is anticipated that it will take approximately 14 days before peak rates will be achieved. On the Bergold 29H-1 a restriction in the wellbore prevented the isolation plugs from being drilled out. Investigative operations with a down hole camera showed a single point of casing deformation with access below this depth maintained, albeit with a reduced diameter. The plugs may still allow production through a restricted internal bore. Tubing has not been installed on this well and it will be produced through the casing until reservoir pressure has depleted to allow remedial operations to regain full bore access to take place. This well will serve a number of commercial and operating purposes but will not be representative of expected well productivity. Main rig drilling operations are progressing on schedule at the company's second surface location, the Taylor/Williams pad. The Williams 26H-2 has reached a depth of 11,867 ft and intermediate casing has been run and cemented in place. The rig skidded to the second well on this pad, the Taylor 27H-1, and is presently at a depth of 11,100 ft. The spudder rig has drilled and cased the top hole section of the 5th well in the drilling program, the Saxby 03-10 2H, at a depth of 3,220 ft and is presently preparing to start drilling the top hole section of the 6th well, the Quin 31-30 3H. All drilling and completion operations to date have been completed without any reportable safety or environmental incidents.