Chairman’s Letter

I am pleased to take this opportunity to share with you my views and priorities for the future of our Company.

The company is an energy and resources Company focused on natural gas exploration, development and production, which was founded on the premise that unconventional oil and gas reservoirs could be developed safely and commercially in Australia. Our long term strategy is to continue to develop the Company’s flagship asset in the Canning Basin, Project Valhalla, which remains potentially one of the world’s last large scale onshore unconventional undeveloped gas projects.

During the period, the Company referral to the Department of Climate Change, Energy, the Environmental and Water (DCCEEW) commenced its public review period. The Company’s also received a ‘Summary of Submissions’ from the Environmental Protection Authority Services (EPA Services) relating to the public review of the submitted Environmental Review Document (ERD).

Following the successful divestment of the Half Moon Prospect which realized US $6,577,810 before taxation, the Company was left with 8 shallow late life standing well bores. A decision was made during the period that the wells were not likely to add significant value to shareholders, and the Company agreed to assign the 8 wells and all associated liabilities to the operator, Rubicon Oil & Gas LLC in exchange for notional $10. This concludes the Company’s entire holdings in the Half Moon Prospect in the Permian Basin.

Whilst the main focus has been on the ERD and federal referral process, the Company continues to progress technical geoscience workflows. These workstreams, which are utilizing advanced geophysical techniques, have the aim to refine the Exploration Permits potential beyond the Laurel formation and help with the design and planning around acquiring new seismic data and ultimately the drilling of wells.

A well integrity program was also undertaken and completed during the second half of August, with the Company’s three standing well bores successfully undergoing routine maintenance and checks. Additionally lease and access road maintenance was also completed.

Relations with traditional owners continues to remain strong as the Company builds on established relationships by increasing knowledge and understanding of the cultural heritage within the region. I would like to recognise the ongoing support of the traditional owners. On behalf of the board, I thank shareholders for their continued patience and support.

As a fellow shareholder, I continue to be excited by the journey that lays ahead of us.

The Company remains well funded with approximately $5m in cash and we remain focussed on progressing Project Valhalla.

Thank you,

Rhett Bennett
Executive Chairman and Chief Executive Officer

30 April 2024