Australis Oil & Gas : Annual Report to shareholders and Appendix 4E

About this update from Australis Oil & Gas Ltd.

For personal use only For Immediate Release ASX Announcement 24 February 2022 2021 Annual Report and Audited Financial Statements Australis Oil & Gas ("Australis" or "Company") is pleased to provide its 2021 Annual Report including the audited consolidated financial statements for the year ended 31 December 2021. Throughout 2021 Australis focused on managing its existing TMS production in a safe manner to maximise productivity and minimise costs, whilst maintaining the valuable undeveloped asset position in the play. The Company achieved many of the financial goals established at the end of 2020 as it emerged from the volatile and unprecedented first year of the global pandemic. Australis continued to safeguard its TMS asset through targeted leasing and by strengthening its balance sheet and increasing liquidity via an equity raising and continued cash generation from operations, whilst maintaining reductions in field-based operating costs and G&A. As in 2020, Australis achieved positive EBITDA for each quarter during 2021 despite the settlement of oil price hedges in 2021 losing US$5.4 million offsetting the prior year's profit from hedges of US$4.7 million. These results, together with improving US oil and gas industry sentiment, sustained higher oil prices and increasing third party activity in the TMS core area all contribute to improved confidence and broaden the appeal of the Company's TMS asset for partnering opportunities. The Company remains patient but confident in sourcing the appropriate partner or partners for further field development. A summary of financial and operating results for the year are as follows: Financial Results 2021 - (US$) Gross revenue from oil sales (before royalties& hedges) $28.3 million Loss from hedging $(5.4) million Average realised sales price (including hedges) $56/bbl Field Netback* (US$) $8.5 million Field Netback (Working Interest)* (bbl) $20.75/bbl EBITDA* $2.7 million Net (loss) after taxation $(2.4) million Year end cash position $9.3 million Total Facility borrowings $16 million Working capital (excluding Macquarie debt repayments) $4.3 million Operating Results 2021 Oil sales (Working Interest) 410,000 bbls Net oil sales (after royalties) 332,000 bbls TMS year end independent PDP reserves (Net) 1 3.0 MMbls Year end independent mid case(2C) contingent resources 1 149.0 MMbbls Acreage leased within the TMS Core ~98,000 net acres Acreage leased and HBP within the TMS Core 38,100 net acres *Field Netback and EBITDA are considered non-IFRS measures. Please refer to Non-IFRS Financial Measures below. The 2021 Annual Report and Appendix 4E is attached. AUSTRALIS OIL & GAS LIMITED 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 For personal use only Australis Oil & Gas Limited advises that in accordance with Clause 6.1 of the Australis constitution and ASX Listing Rule 3.13.1: The 2022 Annual General Meeting (AGM) will be held at 11.00 am (WST) on Wednesday 25 May 2022, and the closing date for the receipt of nominations from persons wishing to be considered for election as a director is 30 March 2022. Any nominations must be received in writing no later than 5.00 pm (WST) on 30 March 2022 at the Company's registered office. Shareholders of the Company (Shareholders) will be advised of further details regarding the AGM in a separate Notice of Meeting, which will be provided to Shareholders in April 2022. The Notice of Meeting will also be available on the ASX Company Announcements Platform and on the Company's website at www.australisoil.com. This ASX announcement was authorised for release by the Australis Disclosure Committee. For further information, please contact: Ian Lusted Graham Dowland Managing Director Finance Director Australis Oil & Gas Limited Australis Oil & Gas Limited +61 8 9220 8700 +61 8 9220 8700 About Australis Australis (ASX: ATS) is an ASX listed upstream 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. The Company's acreage within the core of the oil producing TMS contains 3.0 million bbls of producing reserves providing free cash flow and approximately 150 million bbls of mid case 2C recoverable oil. The Company was formed by the founders and key executives of Aurora Oil & Gas Limited, a team with a demonstrated track record of creating and realising shareholder value. Footnotes 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 31 December 2021 and generated for the Australis concessions to SPE standards. See ASX announcement released on 7 February 2022 titled "Reserves and Resources Update Year End 2021". The analysis was based on a land holding of 98,000 net acres. 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. Non-IFRS Financial Measures References are made within this report to certain financial measures that do not have a standardised meaning prescribed by International Financial Reporting Standards (IFRS). Such measures are neither required by, nor calculated in accordance with IFRS, and therefore are considered Non-IFRS financial measures. Field Netback and EBITDA are Non- IFRS financial measures commonly used in the oil and gas industry. Non-IFRS financial measures used by the Company, including Field Netback and EBITDA, may not be comparable with the calculation of similar measures by other companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS. EBITDA represents net income /(loss) for the period before income tax expense or benefit, finance costs, depletion, depreciation and amortisation charges and impairment provision. The following table reconciles net loss after tax to EBITDA: For personal use only 31 December 2021 US$'000 Net (loss) after tax (2,408) Adjustments: Depletion 1,641 Depreciation - production equipment 1,300 Depreciation 296 Net finance expenses 1,906 EBITDA 2,735 FIELD NETBACK Field Netback represents oil and gas sales net of royalties, production and state taxes, inventory movements, hedging gains or losses, field based production expenses but excludes depletion and depreciation. GLOSSARY Term Definition TMS Tuscaloosa Marine Shale bbl(s) Barrel(s) of oil MM Millions PDP Proved Producing Reserves 2C Most Likely Contingent Resource TMS Core The Australis designated productive core area of the TMS delineated by production history HBP Leased minerals deemed held by production by an existing producing well. For personal use only 24 February 2022 APPENDIX 4E FINANCIAL YEAR ENDED 31 DECEMBER 2021 AUSTRALIS OIL & GAS LIMITED (ASX: ATS) ABN or equivalent company reference 34 609 262 937 This information should be read in conjunction with the Australis Oil & Gas Limited 2021 Annual Report (which contains the 2021 audited Financial Report and other information required for Appendix 4E) Results for Announcement to the Market Revenue from ordinary activities Decreased by 12% (1) from US$26.1 million in 2020 to US$22.9 million in 2021 Loss from ordinary activities after tax Decreased by 98% (1) from a loss of US$125.2 million attributable to members for 2020 to a loss of US$2.4 million for 2021 Net loss for the period attributable to Decreased by 98% (1) from a loss of US$125.2 million members for 2020 to a loss of US$2.4million for 2021 An explanation of the results is contained within the 2021 Annual Report which can be found on the ASX website or the Australis website at www.australisoil.com (1) Comparisons are made to the financial year ended 31 December 2020 Dividends No dividends have been paid or proposed for the year ended 31 December 2021 (2020: nil) Net Tangible Asset per Security 31 December 2021 31 December 2020 US$0.05 US$0.06 This report is based on audited accounts This ASX announcement was authorised for release by the Australis Disclosure Committee. For further information, please contact either: Graham Dowland Julie Foster Finance Director Company Secretary Australis Oil & Gas Limited Australis Oil & Gas Limited +61 8 9220 8700 +61 8 9220 8700 AUSTRALIS OIL & GAS LIMITED 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 For personal use only A N N U A L R E P O RT FOR THE YEAR ENDED 31 DECEMBER 2021 Australis Oil & Gas Limited ABN 34 609 262 937 This is an excerpt of the original content. To continue reading it, access the original document here .

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