Announcement PDF ASX Announcement For Immediate Release 14 May 2024 Chairman’s Address and Company Presentation Material 2024 Annual General Meeting Please find attached to this document a copy of the Chairman’s address and the presentation that will be provided by Australis Oil & Gas Limited today at its Annual General Meeting. This ASX announcement was authorised for release by the Australis Disclosure Committee. For further information, please contact either: Ian Lusted Managing Director Australis Oil & Gas Limited +61 8 9220 8700 Graham Dowland Finance Director Australis Oil & Gas Limited +61 8 9220 8700 A UST RA LI S O I L & GA S LI MI T E D ABN 34 609 262 937 Ground Floor, 215 Hay Street Subiaco WA 6008 • PO Box 8225 Subiaco East WA 6008 T +61 (8) 9220 8700 • F +61 (8) 9220 8799 www.australisoil.com Chairman’s Address – 2024 Annual General Meeting Welcome to the 2024 AGM of Australis Oil & Gas. Thank you to those in attendance today whether in person or online. Last year I referenced the timeframe for delivery of the returns we seek for investors as being longer than expected. Unfortunately, I have to repeat that message, albeit not for want of effort from our team. Our CEO Ian Lusted will address activities and business development in more detail in his presentation following the procedural elements of the AGM. During the past year we have sought to balance the maintenance of our ownership and control of our key asset with strict management of finances, whilst strategically remaining focused on securing third party engagement. The level and nature of third-party engagement during the past year has been broad and consistently encouraging yet ultimately frustrating. We continue to discuss cooperation scenarios with several third-parties and will report progress as and when appropriate. We are grateful for your patience in the realisation of our objectives. We will continue to work hard to deliver the value we see in our asset base. On behalf of the Board and shareholders, I would like to thank our management and employees both in Australia and the US who during the past year have continued to demonstrate their commitment, professionalism and skill. Further, many within our team have been prepared to sacrifice remuneration with a view to ultimate corporate success. This is much appreciated. Our executive team and staff, even with reduced numbers, have continued to execute operations efficiently and safely. We remain optimistic that the coming year will be one of progress and I can assure you that we will continue to work diligently towards our objectives on your behalf. Jon Stewart Chairman ASX: ATS 2024 AGM Presentation 14 May 2024 Important Notice and Disclaimer This presentation has been prepared by Australis Oil & Gas Limited ACN 609 262 937 (ASX: ATS) (Australis). Summary of information: This presentation contains general and background information about Australis’ activities current as at the date of the presentation and should not be considered to be comprehensive or to comprise all the information that an investor should consider when making an investment decision. The information is provided in summary form, has not been independently verified, and should not be considered to be comprehensive or complete. The information in this presentation remains subject to change without notice. Australis is not responsible for providing updated information and assumes no responsibility to do so. Not financial product advice: This presentation is not financial product, investment advice or a recommendation to acquire Australis securities and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances. Australis is not licensed to provide financial product advice in respect of its securities or any other financial products. Cooling off rights do not apply to the acquisition of Australis securities. Australis assumes that the recipient is capable of making its own independent assessment, without reliance on this document, of the information and any potential investment and will conduct its own investigation. Disclaimer: Australis and its related bodies corporate and each of their respective directors, agents, officers, employees and advisers expressly disclaim, to the maximum extent permitted by law, all liabilities (however caused, including negligence) in respect of, make no representations regarding, and take no responsibility for, any part of this presentation and make no representation or warranty as to the currency, accuracy, reliability or completeness of any information, statements, opinions, conclusions or representations contained in this presentation. In particular, this presentation does not constitute, and shall not be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Australis. Future performance: This presentation contains certain forward-looking statements and opinion. Generally, words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “potential” and similar expressions are intended to identify forward-looking statements. The forward-looking statements, opinion and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements, including projections, forecasts and estimates, are provided as a general guide only and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Australis. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Not an offer: This presentation is for information purposes only. This presentation is not, and should not be considered as, an offer or an invitation to acquire securities in Australis or any other financial products and neither this document nor any of its contents will form the basis of any contract or commitment. This presentation is not a prospectus and does not contain all the information which would be required to be contained in a prospectus. Offers of securities in Australis will only be made in places in which, or to persons to whom it would be lawful to make such offers. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of Australis. No Distribution in the US: This presentation is not an offer of securities for sale in the United States. Securities of Australis are not registered under the US Securities Act of 1933, as amended (the "US Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act. No public offer of the securities is being made in the United States and the information contained herein does not constitute an offer of securities for sale in the United States. Monetary values: Unless otherwise stated, all dollar values are in United States Dollars (US$). The information in this presentation remains subject to change without notice. 2 2023 ESG and Financial results NOT FOR DISTRIBUTION OR RELEASE IN THE US 3 ESG summary - 2023 Australis reported another year of safe operations and reduced emissions Employee Safety Performance  Strong safety culture for field operators resulted in another exemplary performance with no safety incidents over 4,194 workdays. 2023 2022 Near Miss 1 0 First Aid 0 1 OSHA Reportable 0 0 Lost Time Incidents 0 0 33,550 38,657 2023 2022 Non reportable spillA 4 4 Reportable spillA 1 2 Oil volume spilled within containment (bbls) 0 1.6  Piloting power generation for use during field development phase. Oil volume spilled outside containment (bbls) 1.2 3.7  Full field development offers opportunities to reduce gas emissions through export or onsite utilisation. Produced water spilled (bbls) 6 0 Scope 1 emissions (mt CO2e) 21,591 26,000 Scope 1 intensity (mt CO2e/boe) 0.069 0.064  Proactive Safety Observation Suggestion (SOS) program continues to operate effectively and the key tool to maintain culture.  Another strong environmental performance, one small reportable oil leak (~1.2 bbl) during the year with no volumes released off the production pads.  Reported Scope 1 and Scope 2 emissions under TCFD framework in 2022 & 2023.  Scope 1 emissions largely due to gas flaring – field total 0.67 mmscf/d over 20 separate locations. Hours worked Environmental Performance A. Reportable threshold > 1bbl oil and/or >5 bbls produced water 4 Fiscal summary 2023 Solid 2023 fiscal performance continues to support strategic objectives Financial results  Strong fiscal results during 2023 Units 2023 Bbls 277,000 Sales Volume  Net Debt at $4.2 million at 31 December 2023 Average Realised PriceA US$/bbl 78 Average Achieved PriceB US$/bbl 75  Producing wells independent value YE23 US$47 million (NPV10)2 Sales Revenue (post hedges) US$MM 20.7 EBITDA US$MM 1.0  2023 field netback of US$7.5 million Cash Balance (period end) US$MM 3.8 Total Debt (period end) US$MM 8 Hedge Position from end Q1 2024 WTI Swaps  Conservative hedge position adopted in Q1 2024 for next 24 months in line with debt coverage. WTI Collars Volume (Mbbls) Swap Price (US$/bbl) Volume (Mbbls) Protected Price (US$/bbl) Ceiling Price (US$/bbl) Q2-Q4 2024 71 $71 42 $55 $84 2025 69 $67 24 $49 $81 2026 18 $62 0 na na A. Average oil sales price realised by Australis B. Average oil price achieved by Australis after the effects of hedging 5 2023 Operating Costs Our focus has been on operated costs  Australis as a small operator, active in an area that remote to the major oil field service centers. Access to services and longer lead times can add to cost price pressure. − Overall Opex has been maintained through 2021 – 2023. − Fixed costs were reduced but variable costs (primarily third party) increased across the industry. − Workover frequency maintained 6 Driving down workover frequency Driving down well workover frequency – key to extending field life and minimise operating costs  Workover costs are a significant portion of Australis operating budget.  Workover frequency has been a key focus for the operations team over past 7 years to extend completion run times before intervention is necessary  The results have been dramatic, as can be seen in the chart In 2023 the average time since the last intervention on the 10 wells worked over was 885 days. 7 TMS Asset Description NOT FOR DISTRIBUTION OR RELEASE IN THE US 8 The Tuscaloosa Marine Shale History & entry case Australis believes that the TMS is one of the last discovered, delineated but undeveloped quality unconventional oil play remaining in the Lower 48.  Large depositional area in Louisiana and Mississippi  Historically well known as a source rock with multiple associated conventional developments      in area First tested as an unconventional opportunity in ~2010 with variable results Continued appraisal activity defined a relatively small part of the overall play where consistent results indicated oil productivity on par with the best parts of much more established plays Drilling activities showed clear progress in costs and execution efficiency – by 2019 D&C $/ft were on par with the Delaware Basin Oil price drop in 2014 created opportunity for Australis with incumbent participants all requiring debt restructuring or bankruptcy filings Australis targeted TMS because − Core area results indicated tier 1 well productivity − A low entry cost (due to an uncompetitive environment) equated to a minimal finding cost − Lack of competition and field rules allowed a material contiguous position, entirely within the delineated core to be built − Not exploration, a low-risk exposure with compelling base case economics and significant layered upside 9 Australis TMS Asset The TMS has all of the key attributes necessary for an attractive full field development  A delineated but undeveloped quality oil play is very scarce onshore in the USA  Existing established unconventional oil plays are increasingly mature – quality future drilling locations harder to find or tightly held  Key attributes ensure play attractive  Proved oil deliverability over a long-time frame to define decline curves on par with established plays.  Proximity to infrastructure and markets.  Proactive regulatory environment and consolidated acreage ideal for full field development.  Low royalty rates improve well economics.  Early in optimisation process provides multiple routes to further upside.  89 MMbbls mid case recoverable estimate from existing position.  Ability to rapidly scale this position and first mover advantage. 10 Strategic Position with Scale in TMS Core – Q1 2024 Australis controls the core area and is largest lease holder in the play  Large contiguous land position in the TMS Core with ~58,700 net acres (none on federal lands) providing strategic control and operational benefits. − Limits new entrants acquiring large blocks in Core. − ATS has unique experience in leasing and accumulated an invaluable land database.  Ideal geography in Gulf of Mexico, with proximity to midstream infrastructure and refineries (<50 miles)  Development flexibility – large production units, favourable field rules and opportunity to take new 5 year leases  Significant inventory - 200 net well locations TMS Asset Profile Mississippi and Louisiana, USA Net Acres ~58,700 (39,900 HBP) Producing Wells 31 operated 17 non-operated Net well locations ~200  Opportunity to grow acreage position - additional 100,000 acres has been identified; Australis positioned to act swiftly to implement a focused leasing campaign Acreage Expiry Profile 31 March 2024 11 Industry Dynamics NOT FOR DISTRIBUTION OR RELEASE IN THE US 12 Recent Trends in US Onshore E&P After a period of Capital Discipline and consolidation, when will US Operators look outside of their existing assets?  Capital Discipline & Shareholder return – the industry has successfully adopted this change in business strategy  Operators continue to maximise efficiencies within their existing Plays through improved completion design, longer laterals, refrac techniques and EOR  Maturing plays & declining inventory - this manifests itself as the decline in productivity of primary oil plays which in turn makes capital discipline harder to achieve  Consolidation is accelerating – this addresses inventory issues and synergies to achieve incremental capital discipline. But this is a redistribution, not new inventory.  Operators starting to look at Exploration & New plays − Step Out of same play – perceived as lower risk − Certain operators have commenced some limited exploration or revisiting passed over plays − But operators will not be initially rewarded by shareholders or the market 13 Capital Discipline – Reinvestment Rate vs F&D cost Public companies focus solely on shareholder returns. Reinvestment rates are lower  Production maintenance at minimum cost.  Maximise existing inventory and asset base (infill drilling , Tier 2 locations, utilize DUCs and EOR)  Operational & cost efficiencies (longer laterals & completion design) Finding & Development Costs are rising Reserve Replacement Rate is falling  Inventory replacement driven by consolidation and technology improvement only.  With no new quality inventory, industry F&D costs are rising. Source: RBN “E&P Shareholder Returns Stall Despite Higher Cash Flows As Caution Prevails” Aug 2023 14 Well Performance is declining Average Well productivity is declining in the largest oil basin – The Permian (Delaware & Midland) 2014 TMS well performance  Analysis from Novilabs shows productivity change in the two top counties of the Delaware Basin (Lea & Eddy) and the Midland Basin (Midland & Martin).  All four counties have declined by between -12% and -20%.  2014 average TMS well performance was 143,000 bbls in the first 6 months. Source: Novilabs report 15 Consolidation Occurring in Established Basins A very significant period of consolidation in the established onshore plays with over US$100bn in the Permian alone Date Acquiror Target Basin US$Billion Oct 2023 ExxonMobil Pioneer Natural Resources Permian $64.5 Feb 2024 Diamondback Energy Endeavor Energy Resources Permian $26.0 Dec 2023 Occidental Petroleum CrownRock Permian $12.0 Jan 2024 Chesapeake Energy Southwestern Energy Haynesville/Marcellus $11.5 Jan 2024 APA Corp Callon Petroleum Permian $4.5 Aug 2023 Permian Resources Earthstone Energy Permian $4.5 Feb 2024 Chord Energy Enerplus Bakken $3.9  Consolidation within the established plays motivated by − Adding to depleting drilling inventory − Materiality (Market Capitalisation & Production) − Generate operational efficiencies  In most cases, post consolidation, − Capital budgets reduced (less than combined) − Development activity reduced & Production targets flat Source: Company announcements & Rystad Energy, April 2024 16 Consolidation Occurring in Established Basins Example - Diamondback’s $26 Billion acquisition of Endeavor Resources 2014 TMS Avg: 21,400 bbl/1,000 ft With most of the consolidation being completed in mature oil basins like the Permian, Operators that need to add premium drilling inventory will start to look for other opportunities – the oil productivity of the TMS is undeniable Source: Novilabs “Diamondback-Endeavor Merger: Inventory Growth and Production Insights” Feb 2024 & Company announcements 17 Industry exploration and re-appraisal activity There have been recent indications of some public companies either appraising the fringes of existing plays or reassessing areas that have been passed over historically  Examples of publicly disclosed activities include − EOG and others announcing their large position in the oil window of the Utica shale − The testing & appraisal of deeper horizons in the Permian for additional development opportunities. − A number of companies evaluating the northern fringe of the Midland basin with mixed results to date. − Continental drilling exploration wells in deeper targets an effort to extend the southern Delaware with encouraging results. “The Permian has been the focal point for M&A activity in recent times, but that focus is waning as available assets in the basin become scarce. But with the appetite still strong, deal hungry players are looking outside the basin for acquisitions. A power shift could be on the cards, with non-Permian assets taking centre stage in the future North American deals pipeline.” Atul Raina, VP upstream research, Rystad Energy, April 2024. “What we’ll need in the future is what I’ll say is Generation 3, That’s to deal with the tough rock that contains a lot of things that heretofore we weren’t able to produce, and also to get more out of the Generation 1 and 2 rock.” Harold Hamm, Executive Chairman Continental Resources, Nov 23 “Deals at the start of 2024 were driven by the same factors that led to last year’s marathon of mergers, foremost among them a desire to lock up high-quality inventory when it is available,” said Andrew Dittmar, a principal analyst at Enverus, April 2024. 18 Update on Business Development 19 Australis strategy The business strategy for Australis has been consistent since IPO 2016 - 2019 2020 - present Secure a material position in a quality US unconventional oil play Repackage asset and secure a partner to fund further field activity to demonstrate underlying value Seek to monetise value for shareholders through development or an exit Step 1 Step 2 Step 3  Australis has had perhaps our busiest year since COVID with our BD efforts.  The potential partners have ranged from large public E&P companies, to private companies typically PE backed or family owned and several financially orientated investment vehicles.  We have executed a number of confidentiality agreements and on multiple occasions carried out detailed due diligence  About 1/3 of these engagements have been revisits.  The reasons given for not closing range from − Corporate portfolio issues − Timing − Risk/reward profile − There have been very few technical issues raised following diligence. 20 Summary Although it has taken patience as time frames have extended, Australis is in a unique position to create value 2023 Results Fiscal Production 277,000bbls Netback $7.5mm EBITDA $1.0mm EHS 0 Lost Time Incidents 1 Minor Reportable Spills 0.067 mt CO2e/boe Asset Industry • ~59,000 net acres (200 net locations) with material upside linked to Core acreage leasing • Comparable Tier 1 productivity to the well established plays, despite early stage play status • 89 MMbbl 2P+2C recoverable oil (39 – 41 API) • Low royalties with supportive field rules for development • Infrastructure capacity and access • Increasing maturity & consolidation of established plays • Forcing inventory deficient companies to consider alternative early stage plays 21 Footnotes 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 31 December 2023 and generated for the Australis concessions to SPE standards. See ASX announcement released on 31 January 2024 titled “Activities Report and Tear End Reserves Update”. Australis is not aware of any new information or data that materially affects the information included in the referenced announcement and all the material assumptions and technical parameters underpinning the estimates in the original announcement continue to apply and have not materially changed. Ryder Scott generated their independent reserve and contingent resource estimates using a deterministic method which is based on a qualitative assessment of relative uncertainty using consistent interpretation guidelines. The independent engineers using a deterministic incremental (risk based) approach estimate the quantities at each level of uncertainty discretely and separately. 2. Updated PDP NPV(10) of US$47 million uses the PhDWin model created by Ryder Scott for the PDP year end 2023 estimates1 with an oil price assumption based on the average price for the first day of the preceding 12 months of US$79.51, consistent with both SPE and ASX guidelines. Australis is not aware of any new information or data that materially affects them. The PDP NPV(10) reflects project economics only and does not include the effects of existing or future hedging. 22 Glossary Unit Measure Unit Measure B Prefix - Billions bbl Barrel of oil MM or mm Prefix - Millions boe Barrel of oil equivalent (1bbl = 6 mscf) M or m Prefix - Thousands scf Standard cubic foot of gas /d Abbreviation TMS TMS Core Suffix - per day Bcf Billion standard cubic foot of gas Description Abbreviation Description Tuscaloosa Marine Shale D, C & T Drilling, Completion, Tie in and Artificial Lift The Australis designated productive core area of the TMS EBITDA Net loss / profit for the period before income tax expense or delineated by production history benefit, finance costs, depreciation, depletion, amortisation and WI Working Interest impairment provision C Contingent Resources – 1C/2C/3C – low/most likely/high Net Acres Working Interest before deduction of Royalty Interests NRI Net Revenue Interest (after royalty) IP24 The peak oil production rate over 24 hours of production Net Working Interest after deduction of Royalty Interests TMS Type The history matched production performance of 14 wells drilled NPV (10) Net Present Value (discount rate), before income tax Curve in the TMS by Encana in 2014. Corresponds to an average HBP Held by Production (lease obligations met) treated horizontal length of 7,200ft. EUR Estimated Ultimate Recovery per well IRR Internal Rate of Return WTI West Texas Intermediate Oil Benchmark Price NPT Non Productive Time LLS Louisiana Light Sweet Oil Benchmark Price Reinvestment Percentage of free cash flow used for asset development Opex Operating Costs Rate operations Capex Capital Costs F&D Cost The cost to find and develop a boe of reserve PDP Proved Developed Producing Replacement Non M&A reserve replacement rate PUD Proved Undeveloped Producing Rate 2P Proved plus Probable Reserves 3P Proved plus Probable plus Possible Reserves EOR Enhanced Oil Recovery G&A General & Administrative Royalty Interest Interest in a leasehold area providing the holder with the right to receive a share of production associated with the or Royalty leasehold area Field Netback Oil and gas sales net of royalties, production and state taxes, inventory movements, field based production expenses, hedging gains or losses but excludes depletion and depreciation. 23