Top End Energy Limited provided an operational update. Updated prospectivity review of conventional gas plays over ATP 1069 underway. Target exploration agreement with native title holders of EP 258 at upcoming on country meetings.

Study commissioned into natural hydrogen prospectivity across the company's existing portfolio. Dr. Mike Fischer presented the company's NT strategy alongside other onshore gas players at NT Resource week. The company has engaged Discover Geoscience (Discover) to assist in undertaking geological and geophysical (G&G) studies following the recent completion of the 2D seismic reprocessing exercise carried out by Howman Seismic Services.

The reprocessed data, consisting of 220 line km of 2D seismic across the southern portion of the company's 100% owned ATP 1069 permit (Permit), will be integrated into updated hydrocarbon charge and migration modelling of the Adavale Basin. This will allow the company to assess more accurately the hydrocarbon migration pathways from regional source rock "kitchens" into the area covered by the Permit. The key objectives of the G&G studies are the following: mature the conventional gas prospectivity of the Adavale Basin in the southern portion of the Permit; optimise the location of the planned 2D seismic acquisition campaign; and identify potential drilling leads and reservoir targets.

The Gilmore gas field, situated 50 km west of the Permit, has demonstrated commercial conventional gas production from the Lissoy Sandstone and Log Creek Formation of the Adavale Basin. Initial seismic interpretation suggests these formations may be present within the Permit, but no wells have been drilled to these depths on the Permit. The company's work program is targeted to better understand this potential conventional gas prospectivity and ultimately high-grade drillable prospects.

The modelling and interpretation exercise is targeted to be completed in early fourth quarter of 2022. In parallel, the Company is preparing for the proposed acquisition of up to 120 line km of new 2D seismic and is currently engaging with both landowners and seismic contractors. The company has been negotiating with representatives of the Northern Land Council (NLC) the terms of a proposed exploration agreement ancillary to an agreement under section 31(1)(b) of the Native Title Act.

This proposed agreement will be presented to the native title holders of EP 258 at the upcoming On Country Meetings (OCM). The execution of the ancillary agreement is the key pre-requisite for achieving formal grant of the permit. OCMs with the native title holders originally scheduled for August have been rescheduled to mid-September due to factors outside of the Company's control.

Multiple contingency dates have also been allocated by the NLC to the Company for the coming months, and the company remains focused on achieving its stated work program timing, specifically: receiving formal grant of EP 258 before year end; and undertaking the proposed acquisition of up to 150 km of 2D seismic survey in first half 2023, conditional on receiving grant of EP 258 and satisfaction of necessary approvals and land access agreements. In parallel with the native title engagement, the Company has commenced preparation of the approvals, agreements and other submissions required ahead of undertaking on ground activities, including Aboriginal Areas Protection Authority certificate applications in accordance with the proposed native title ancillary agreement, Environmental Management Plan and land access agreements. The objective of the proposed seismic survey is to confirm the extension of the proven play system that hosts the significant discoveries which have been made in the Beetaloo Basin, including the conventional Bessie Sandstone and unconventional Velkerri Shale reservoirs, into the Company's application areas on the Southern McArthur Basin margin, and ultimately aid in the identification of drilling targets.