Australis Oil and Gas Limited ('Australis' or 'Company') is pleased to provide its YE2021 reserve and resource update as independently assessed by Ryder Scott Company L.P. ('Ryder Scott') with an effective date of 31 December 2021

Australis continues to take a conservative approach to estimating its oil and gas reserves and resources. Future production from existing wells has been assessed in the YE2021 report in a manner consistent with previous years. However, given the current Company strategy to introduce a partner for the purposes of advancing the development of its TMS asset, the Board has determined that it would not be appropriate to propose a development plan as part of the YE2021 reserves evaluation.

Therefore, the YE2021 reserve and resource estimate consists of a proved, probable and possible developed reserve estimate only and no reserve estimates have been generated for undeveloped acreage. A contingent resource estimate is provided and, as in previous years, the mid case 2C contingent resource is subject to a qualifying development plan to transition volumes to an appropriate reserve category of proved, probable and possible.

Australis Managing Director and CEO Ian Lusted, said 'Australis continues to take a conservative approach to its reserve and resource estimates. We remain absolutely confident that we will secure a partner to contribute to the development of the large TMS asset that we hold and will update our undeveloped reserve estimates once a forward program has been adopted which we believe will be highly economic at prevailing oil prices.

At the effective date of the report, 31 December 2021, Australis held the rights to 98,000 net acres within the TMS Core area, a reduction of about 10,000 acres during 2021. Australis also divested its interests in 5 marginal TMS wells located in Louisiana outside the TMS core area, which reduced the existing operated well count to 33, of which two were shut in awaiting workovers for the entire year and were therefore designated Proved Developed Not Producing ('PDNP').

The remaining 31 producing operated wells and interests in 15 producing non-operated wells were assessed by Ryder Scott on a Proved Developed Producing ('PDP') basis and additional volumes attributed to the mid (probable) and high (possible) cases. In previous years Australis has proposed modest development plans for Ryder Scott to consider in order to assess proved, probable and possible undeveloped reserves. These development plans were based on an appropriate projected well schedule at that time and any recoverable volumes not assigned as an undeveloped reserve were allocated to a low, mid or high case contingent resource, subject only to a qualifying development plan. Australis has consistently advised that the Company has been seeking to introduce a partner in the TMS to help progress field development.

The Australis Board therefore deemed it appropriate to wait and intends to update the undeveloped reserve assessment when there is more clarity on future development plans. This decision does not impact the economic potential of the play. As shown in the YE2020 reserve report, which included a modest development program, the proved undeveloped reserves were economic even at the YE2020 reserve report oil price of US$47.02/bbl. Without a development plan all recoverable oil volumes from future wells are allocated to contingent resources.

The ASX and SPE compliant methodology of taking the average 1st day of the preceding 12-month period yielded an oil price of $67.27/bbl for use within the YE2021 report.

Contact:

Ian Lusted

Tel: +61 8 9220 8700

Forward Looking Statements

This document may include forward looking statements. Forward looking statements include, but are not necessarily limited to, statements concerning Australis' planned development program and other statements that are not historic facts. When used in this document, the words such as 'could', 'plan', 'estimate', 'expect', 'intend', 'may', 'potential', 'should' and similar expressions are forward looking statements. Although Australis believes its expectations reflected in these statements are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements.

(C) 2022 Electronic News Publishing, source ENP Newswire