Quarterly Activities and Appendix 5B March 2022

ASX / MEDIA RELEASE

ASX Code: MEL

29 April 2022

QUARTERLY ACTIVITIES REPORT

FOR THE QUARTER ENDED 31 MARCH 2022

Vali commercial agreements executed to secure transition to production

Metgasco MD Ken Aitken: "I am pleased to report that during the quarter Metgasco and the ATP2021 JV partners made good progress on commercial agreements and general project activities to deliver our goal of becoming a gas producer and generating cash revenue. Signing a definitive gas sales agreement with a premium gas customer AGL for up-to 16PJ was a major commercial milestone which will deliver significant cash over the 4.5yr contract duration. In April the well stimulation program commenced and the processing agreement with the SAJV capped off a period of significant progress on Vali commercialisation. Increasing our net interest in Odin to 25% was a good strategic move as it equalises permit interests across our production hub licences (ATP2021 and PRL211)"

Key activities for the quarter ended 31 March 2021 ("Quarter") comprised:

Vali (ATP2021):

• • Definitive gas sales agreement (GSA) signed with AGL Wholesale Gas Limited

• • Total gross volume of gas sales estimated at between 9PJ to 16PJ (4PJ net MEL)

• • Subsequent to the end of the quarter an upstream transportation and processing agreement was executed with SACB Joint Venture

• • Processing agreement execution triggers initial two tranches of GSA prepayment totalling $10million (Gross), $2.5million (Net) to Metgasco in Q2 FY22

• • Significant progress on project preparation for pipeline installation and planning well stimulation/ completion activity to be initiated in Q2 FY22

Odin (PRL211):

• • Metgasco and ATP2021 JV partners acquire respective share of Beach Energy's 15% interest in PRL211

• • Increase of Net 2C Contingent Resource of gross 3.1 Bcf

Cervantes (L14):

• • Ensign 970 rig mobilised allowing Cervantes-1 well to spud on 26 March

• • Subsequent to quarter end the Cervantes-1 well was drilled safely and efficiently to TD.

• • LWD indicated that the Permian zones were water bearing and the well was plug and abandoned

The Quarter's activities are detailed below:

Cooper/Eromanga Basin Exploration Licence - ATP2021:

ATP 2021(Metgasco 25%, Vintage 50% and operatorship, Bridgeport (Cooper Basin) Pty Ltd 25%)

ATP2021 is located in Queensland adjoining the Queensland- South Australia border (see figure 1 below). ATP2021 contains the Vali gas field, discovered by Vali ST1 in January 2020 and successfully appraised by Vali-2 and Vali-3 in the June and September quarters of CY2021. The field has three cased wells available for future gas production.

Figure 1: Cooper Basin permits PRL 211 and ATP 2021 including well locations Odin-1, Vali-1 ST1, Vali-2 and Vali-3 Source: Vintage

The 2P reserve of the Vali field is 101.0 PJ (25.2PJ net to MEL) independently certified and booked (previously Gross 2P of 33.2PJ (8.3PJ net to MEL) The following tables detail the combined revised reserves estimates

Table 1&2 - Vali Field Gross and Net Reserves:

Notes:

• 1. Reserves estimates reported here are ERCE estimates, effective 31 October 2021, first announced to the ASX 1 November 2021

• 2. Metgasco is not aware of any new data or information that materially affects the Reserves above and considers that all material assumptions and technical parameters continue to apply and have not materially changed.

• 3. Reserves estimates have been made and classified in accordance with the Society of Petroleum Engineers ("SPE") Petroleum Resources

• Management System ("PRMS") 2018.

• 4. Company Net Entitlement Reserves are based on the Metgasco working interest share of 25% of the field gross Reserves and are prior to the deduction of royalties

• 5. Sales Gas volumes are net of fuel and flare volumes.

• 6. All quantities subject to rounding to one decimal place for clarity purpose.

Activity during the quarter was focussed on the commercial agreements and progressing pipeline and well delivery project works to enable commencement of gas supply from Vali as detailed below.

Gas Sales Agreement with AGL for supply of gas from Vali

During the quarter Metgasco and the ATP 2021 Joint Venture parties announced signing of a gas sales agreement ("GSA") with AGL Wholesale Gas Limited ("AGL") for the sale of between 9 petajoules (PJ) and

16 PJ of gas produced from the Vali Gas Field over approximately 4.5 years from field start up to end calendar 2026. The supply of gas under the GSA will constitute approximately 9% to 16% of the Vali field's 2P reserves. Metgasco has a 25% interest in ATP 2021. The terms of the GSA reflect the Heads of Agreement between the joint venture and AGL announced 6 December 2021, following a competitive process.

The GSA, which was subject to conditions precedent, became unconditional subsequent to the end of the quarter following execution of an upstream transportation and processing agreement with the South Australian Cooper Basin Joint Venture. Consistent with the GSA, Vintage then issued invoices to AGL for the first two of three, $5 million pre-payments payable to the ATP2021 joint venture. The prepayments are to be applied specifically to capital expenditure to take Vali to first gas.

Pipeline and well delivery project update

In respect the Vali project capital works, activity was focussed on preparatory prerequisites for the well completion and pipeline connection phase including:

• • Pipeline detailed engineering, which was taken to near completion;

• • Survey of pipeline routes;

• • Securing regulatory approvals;

• • Procurement;

• • Planning of the construction phase;

• • Engagement with fracture stimulation, rig and construction contractors; and

• • Technical preparation and planning for the fracture stimulation of Vali-2 and Vali-3.

The fracture stimulation campaign, which is being conducted by Schlumberger and supervised by Griffin Energy Solutions, commenced on 3 April.

ATP 2021 has significant further oil and gas prospectivity. Seismic acquisition and interpretation are required to identify optimal locations. Planning for seismic acquisition was conducted during the quarter and will continue in the June quarter.

Cooper/Eromanga Basin Exploration Licence - PRL211:

PRL 211 (Metgasco 25%*, Vintage 50%* and operatorship, Bridgeport (Cooper Basin) Pty Ltd 25%*)

PRL 211 lies in the South Australian Cooper Basin, with the licence's eastern boundary adjacent to the ATP 2021 western boundary (see Figure 1). The licence is in close proximity to the South Australian Cooper

Basin's Joint Venture's gas production infrastructure at the Beckler, Bow and Dullingari fields. The Odin Gas

Field, discovered by the PRL 211 Joint Venture in 2021, is located in both PRL 211 and ATP 2021 on the southern flank of the Nappamerri Trough in the Cooper Basin.

During the March quarter Metgasco and the ATP2021 partners announced an agreement, subject to ministerial approval, to acquire their respective share of Beach Energy Ltd's 15% interest in PRL 211. The acquisition will result in common interest holders and respective interests in the PRL 211 and ATP 2021 joint ventures, an outcome which will facilitate decision-making and the optimisation of activities and investment within the two permits.

Consideration for the transaction is structured to align with the commercial success of Odin, as an initial payment of $1 million by the PRL 211 Joint Venture will be supplemented by two further payments totalling $1.25 million payable on achievement of production milestones.

The the Toolachee and Epsilon Formations were successfully flow-tested at Odin-1 in the final quarter of CY 2021, with a stable rate of 6.5 million standard cubic feet per day recorded at a flowing wellhead pressure of 1,823 psi through a 28/64" fixed choke. At the end of the flow period, a multi-rate memory production log was acquired, which confirmed gas was being contributed from each of the perforated Epsilon and Toolachee formations.

Independent Certification of resources at Odin by ERC Equipoise Pte Ltd ("ERCE") were announced to the ASX on 16 September 2021 and shown in Table 3& 4 below; (Refer to 16 Sept 2021 announcement for resource notes)

Table 3&4 - Odin gross and net Contingent Resources:

The effect of this transaction is to redistribute approximately gross 3.1 Bcf of the 2C Contingent Resource previously attributable to Beach Energy in PRL211 to the joint venture parties.

Metgasco's net share of 2C Contingent Resource at Odin will increase by 0.77 to 8.77 Bcf as a result.

Odin-1 is currently shut-in, awaiting completion, which has been scheduled to occur immediately after the forthcoming well completion campaign at Vali.

The PRL211 JV has received multiple inquiries from parties interested in securing long term gas supply from Odin. This market intelligence acquired, together with data collected from the well, is to be assessed and incorporated into a commercialisation plan for the asset.

Odin field is expected to become the 2nd field in Metgasco's PRL211/ATP2021 gas production hub and supply gas to the Australian domestic market through tie-in to the Moomba gas gathering network.

*Subject to ministerial approval, pursuant to the transaction discussed in the commentary above

Cooper/Eromanga Basin Exploration Licence - ATP 2020 (Metgasco 100%):

The ATP2020 licence is 535km2 in area and was granted 100% to Metgasco in 2018. A geological and engineering review of all wells previously drilled in the permit has been carried out. A review of publicly available exploration and production data from neighbouring blocks has also occurred.

The licence is in close proximity to areas of hydrocarbon sources and consider that a relatively low-cost shallow well can drill both the oil and gas geological targets identified in the Loki prospect. A Native Title Agreement is in place. The area is underexplored with limited activity over the last 30 years. A gas pipeline traverses the permit, and an oil pipeline is close to the Licence. The primary gas target is the Toolachee sands, and the primary oil target is the Jurassic Cretaceous sands. Both of these sands have commercially produced hydrocarbons in the vicinity of ATP2020 at the Wareena gas field and the Toby oil and gas field. Metgasco's sub-surface work indicates that the Loki prospect extends into a neighbouring un-licenced area and has commenced an application with the regulator in CY2021 to secure tenure. During the quarter the regulator informed Metgasco that the unlicensed area will not be gazetted in CY2022. In March CY 2021 Prospective oil and gas resources were estimated for the Loki prospect of P50 13.1 Bcf recoverable gas and P50 6.4MMbbl recoverable oil (see 23 March 2021 ASX release)

Metgasco are undertaking a farm-out process of the ATP2020 Licence.

Perth Basin L14: Cervantes Exploration Well:

L14, comprising 39.8 km2 over the Jingemia Oil Field and surrounds, is located onshore within the Perth Basin. The permit contains the Cervantes-1 oil prospect, which is on trend with Cliff Head, Jingemia and Hovea oil fields. Metgasco was to earn a 30% stake in any discovery in the Permian reservoirs by funding 50% of the cost of Cervantes-1

Following receipt of the regulatory environmental approvals in February the Ensign 970 rig contract was executed. Access track and well pad civils construction work commenced in February and were completed in the 2nd half of March allowing the rig to be mobilised. Cervantes-1 was spudded on the 26 March and reached TD in 8.5" hole at midnight on Wednesday 6 April.

Figure 2: Ensign 970 drilling at Cervantes-1 location

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