Black Mountain Energy Ltd (the Company; Black Mountain, ASX: BME) wishes to provide the market with a Company and project update.

• BME remains strongly committed to progressing Project Valhalla in the Canning Basin.
• The focus for Project Valhalla is on acquiring the necessary approvals that will enable appraisal drilling activity.
• The Company will be removed from the Official List of the ASX on the 15 March 2024.
• Regular shareholder communication and updates will continue after delisting.
• The Company entered the 2024 calendar year with approximately A$7.7 million cash on hand.

Project Valhalla

The Company continues to believe the Project Valhalla in the Canning Basin is a significantly large undeveloped unconventional onshore gas reservoir and remains focused on progressing the necessary approvals that will ultimately enable appraisal drilling activity. See figure 1.

Key items for the first half of 2024:

• The Company will release its 2023 annual report to shareholders.
• Feedback is expected from the Western Australia Department of Water and Environmental Regulation (DWER) on its Environmental Review Document (ERD) submission along with entering into the public review period.
• The Project will be referred to the Department of Climate Change, Energy, the Environmental and Water (DCCEEW).

During the second half of 2024, the Company will conduct its annual well maintenance program and fulfill its reporting requirements. Additionally, technical workflows will commence utilizing advanced geophysical techniques, which will be used to help with the design and planning around acquiring new seismic data.

Beyond 2024, the Company plans to progress the acquisition of 130 km of new 2D seismic and when approvals are in place begin the detailed planning required to drill appraisal wells. Throughout 2024 and beyond, the Company will regularly visit and engage with traditional owner groups and provide project updates via the Company’s website.

Cash on hand is strong and will be used to progress the above scopes and workflows. As previously announced, on the 24 August 2023, the Company executed a binding sale and purchase agreement to sell its Half Moon prospect in the Permian Basin. The Company realized sale proceeds of US$6,577,810 or around A$10.4m, before taxation. BME entered the 2024 year with approximately A$7.7 million cash on hand.

As announced to the ASX on 28 December 2023, the Company is continuing to take steps to reduce the costs associated with maintaining the Company in an attempt to ensure maximum funds are directed towards exploration.

Executive Chairman Rhett Bennett commented, “I strongly believe in the vast resource development opportunity that exists in our EP 371 permit and we are committed to progressing Project Valhalla in the Canning Basin as quickly as possible. Our cash on hand will enable us to advance the Project and in particular the required approvals that enable activity. I look forward to communication with all shareholders in the months ahead with regular updates.”

Delisting Update

The Company would like to remind shareholders that the Company’s securities will be suspended from the commencement of trading on 13 March 2024, and the Company be removed from the Official List of the ASX at the close of trade on 15 March 2024.

Shareholders who wish to sell their shares prior to delisting have until close of business on 12 March 2024 to transact.

Following Delisting, the Company’s shares will only be capable of sale via an off-market transaction which will require shareholders to identify and agree terms with potential purchasers in accordance with the Corporations Act and the Company’s Constitution. The Company has arranged for Foster Stockbroking (fostock.com.au), who has been supporting BME the last couple years, to help facilitate your transactions after delisting. Please direct your enquiries to
[email protected] or at +61 2 9993 8111. Shareholders are not obligated to use the suggested broker.

This announcement has been authorized for release by the Board of Black Mountain Energy Ltd.

For more information, please contact:

Branka Narancic
Manager of Client Services
Advisir
[email protected]
+61 437 190 010

Michael Laurent
Executive Director and Chief Operating Officer
Black Mountain Energy
[email protected]
+61 8 9200 1685