Introduction

TUSCALOOSA MARINE SHALE (TMS)

ONSHORE USA

Through multiple acquisitions over the past 2 years, Australis has achieved a strategic acreage position within the TMS, one of the last emerging oil shale basins onshore in the USA with oil production per well similar to the best areas within US shale such as Eagle Ford in Texas.

Australis holds over 110,000 net acres in the oil rich TMS core, making it the largest producer and acreage holder in that region.  Australis operates 31 producing wells generating positive cashflow.

This large acreage position within the TMS core, together with the associated production and cashflow, proven reserves and large undeveloped resource provides the platform for significant value creation for Australis shareholders.  

Summary of Australis' TMS Asset As at September 30 2018
Net TMS Core leased (focus) acres 110,000 (26% HBP)
Net production - average Q3 2018  1,054 bbl/day
Ryder Scott estimated resources (2P + 2C) as at 31 Dec 17 145 million bbls 
Australis estimated additional resources (2C) as at 30 Sep 18 27 million bbls 
Total estimated resources (2P + 2C) as at 30 Sep 18 172 million bbls
Well inventory (future locations, net) - 110,000 net acres assessed 410 net wells

During 2018, a further 15,000 net acres have been acquired increasing the Company's ownership to 110,000 net acres. Using the same assumptions as the Ryder Scott 2017 Year End Report, Australis estimates a further 27 million barrels of 2C Resource is attributable to this increased TMS acreage position. 

For a summary of reserves and resources refer to Reserves and Resources.