Australis Oil & Gas provides the following update on the Company's recently commenced development activities in the Tuscaloosa Marine Shale (TMS), onshore Mississippi. Fracture stimulation operations have been successfully completed on the first two wells at first location, the Stewart 30H-1 and Bergold 29H-2. Flowback expected to commence around the beginning of the new year. The Company anticipates providing IP30 (initial production over the first 30 days) data in February 2019 for the Stewart 30H-1 and Bergold 29H-2 wells. Main rig drilling operations are progressing on schedule at second location, the Taylor/Williams pad. The first of two wells, the Williams 26H-2, has reached a depth of 11,295 ft with approximately 600ft remaining before intermediate casing depth. The second well on this pad has been previously drilled and cased to the top-hole section depth of approximately 3,260 ft by the spudder rig. The spudder rig has arrived and commenced rigging up on third location, the Saxby/Quin Pad. It will drill the top-hole sections for wells #5 and #6 in the initial drilling program. As previously disclosed, the aim of the Australis initial drilling program is to achieve average production results from the first set of new wells that replicate historical well performance achieved within the TMS core area in 2014. Drilling and Completion operations to date have been completed without any reportable safety or environmental incidents.