Australis Oil & Gas Ltd ('Australis' or 'Company') is pleased to provide its consolidated financial results for the half year ended 30 June 2022.

The solid financial performance in the first half of 2022 was largely driven by the rising oil price with our achieved sales price, before the effect of hedging, averaging US$103/bbl. The impact of our Credit Facility required hedges reduced this achieved averaged price to US$82/bbl for the period. Inflationary pressures on costs have been experienced in 2022 leading to a rise in most expenses including our operating costs.

Despite the hedge losses and increase in costs, the Company continued its positive cashflow record with EBITDA of US$3.2 million (1H/2021: US$1.1 million) and the reduction in net debt to US$5.3 million. Activity in the TMS continued to increase with two wells fracced in the 1H 2022. The Reece 11H No.1 well located in the SW of Amite County Mississippi and the Painter 5H No.1 well located on the border of Washington and Tangipahoa parishes, Louisiana. The Reece 11H was successfully drilled and completed by State Line Exploration, the operating company of Juniper Capital Advisors and produced an IP24 rate of 1800 bopd and, several months post completion, was flowing at approximately 500 bopd without any form of artificial lift. Whilst Australis has no interest in this well, it is located in the TMS Core and Australis owns and operates several nearby wells. The Painter 5H was successfully fracced by Paloma Resources, backed by Encap Energy Capital, and whilst adopting a conservative approach to the flowback, this well achieved an IP30 of 640 bopd and continues to produce at similar levels with a constrained reservoir management approach.

Australis, in the 1H 2022, acquired a 10% WI in this well and the unit leases. The well was drilled in 2014, by a previous operator, with a relatively short lateral length of 5,000ft and small 5' OD and remained a 'Drilled but Uncompleted well' (DUC) until Q2 2022. Australis continued the previously adopted and achieved strategy of safeguarding its ownership of the large undeveloped reserves and resources in the core area of the TMS whilst seeking to introduce an appropriate partner to recommence activity in the TMS and progress the value creation strategy. The 18 month extension to the Company's credit facility maturity date complements the strategy for the TMS by providing greater flexibility for our cash resources and cashflow.

Whilst maintaining capital discipline the extension allows funding for the strategic land renewal and control program and participation in the second DUC well with Paloma in 2H 2022. The current facility balance of US$14 million, which reduces by a minimum of US$1 million each quarter, is now repayable without penalty on or before May 2025. The recent entry and success of the two well funded private equity backed operators (State Line and Paloma) into the TMS has assisted our engagement with potential partners.

Australis has and continues to discuss the framework for partnering with several interested parties. Australis remains very confident the underlying oil and gas market conditions will ultimately force potential partners to consider emerging plays for future Tier 1 well inventory and the fundamental asset quality will ensure the TMS, being one of the last undeveloped quality oil plays, is considered. As such Australis will continue to be measured in the approach to partnering discussions to ensure that any such engagement is on the right terms for the Company in the context of its overall strategy and is with the right partner(s).

Contact:

Tel: +61 8 9220 8700

About Australis

Australis (ASX: ATS) is an ASX listed 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. With approximately 83,500 net acres within the production delineated core of the proven oil producing TMS, Australis retains significant upside potential with approximately 360 net future drilling locations, and an independently assessed 153 MMbbls of 2P + 2C recoverable volume including 3.0 MMbbl producing reserves providing net field cash flow1. The contingent oil resource is only contingent on a qualifying development program. Australis was formed by the founder and key executives of Aurora Oil & Gas Limited, a team with a demonstrated track record of creating and realising shareholder value.

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