Portfolio Strategy

The Australis portfolio strategy seeks to acquire oil and gas assets within the following categories:

Core Proven Assets

Assets that have demonstrable and relatively consistent financial returns for investment in wells in established plays in North America during the current lower oil price environment.

Such core proven assets will have the potential to provide both organic growth through an expanding inventory of proved undeveloped well locations together with potential oil price upside, offering possible ongoing revenue, reserves and growth.

Appraisal Assets

Assets at an earlier stage in the maturity cycle when compared to Core Proven Assets but will have technical and economic characteristics that the Australis management believes are indicative for the asset to be a successful development opportunity.

Appraisal assets will generally have significantly lower acquisition costs than more established core proven asset plays, thereby offering potential upside from any appraisal success.

Exploration Assets

Assets that require minimal early capital commitment but afford significant potential upside from any exploration success and/or appraisal.

Exploration assets may be within a broader geographical basis, although specific local jurisdiction criteria will be a key component of the assessment process.