Australis Oil and Gas Limited provided the market with an update to reserve and resource position in the Tuscaloosa Marine Shale ("TMS"), based on the development of approximately 35% of its 95,000 acre position, as independently assessed by Ryder Scott Company with an effective date of 31 December 2017. Existing producing wells have a PDP of 3.93 MMbbls and PDNP of 0.17 MMbbls and a combined NPV(10) of USD 79.5 million. Ryder Scott have provided net (after royalties) oil reserve estimates based on assessment of 35% of undeveloped core TMS acreage, 1P ­ 28.90 MMbbls, 2P ­ 46.58 MMbbls, 3P ­ 60.18 MMbbls. Ryder Scott estimated net contingent resources based on the remaining undeveloped acreage in the core, 1C ­ 8.87 MMbbls, 2C ­ 98.05 MMbbls, 3C ­ 177.76 MMbbls. Australis believes that these remaining contingent resources will transfer to reserves when assessed for development, subject to prevailing oil Pice. The total acreage was only partially assessed for reserves due to an assumed modest drilling program within a 5 year development timeframe. In February 2017, as preparation for disclosure on the Encana acquisition, Ryder Scott prepared a PDP reserve estimate for the existing production being acquired. As there were no immediate plans for development due to the low oil price and consistent with business strategy of consolidating the position under those circumstances Ryder Scott prepared a contingent resource estimate for the undeveloped acreage within the production delineated core of the TMS (then 81,000 net acres). As at 31 December 2017 net acreage position had increased to over 95,000 acres and the company achieved an effective oil sales price in the preceding month of USD 62/bbl, generating a strong economic case for commencement of drilling activity. Therefore, in addition to assessing the PDP of the 48 producing wells, of which one was shut in awaiting remedial operations scheduled for January 2018, the Company requested that Ryder Scott evaluate the reserve estimate for a modest development program, starting with 1 rig in mid-2018, moving to 3 rigs in 2019 and then moving to 4 rigs for the period 2020 ­ 2022, which conforms to the 5-year evaluation timeframe prescribed by the SPE Petroleum Reporting Management System. Using conservative assumptions on drill times, this corresponded to the drilling and completion of 126 total well locations within the TMS and to approximately 35% of core undeveloped acreage. Ryder Scott deemed all locations that they evaluated for development to be commercial and they allocated the following reserves and resources to the Australis TMS position.