Project Longhorn

Acquisition of approximately 73% net working interest in conventional onshore oil and gas production assets in the Permian Basin, Texas, USA. The assets include 9 leases, 32 producing wells, and associated infrastructure, providing immediate cash flow with current gross production of approximately 300 BOE per day (70% oil). The purchase price was US$9.7 million, comprising US$7.2 million cash and US$2.5 million in shares. The seller retains a 24% interest and remains operator. The assets have independently certified net 2P reserves of 2.1 million barrels of oil equivalent and planned work-overs aim to double production by late 2022.