Sasanof ERCE Resources Report Summary

ERCE INDEPENDENT REVIEW OF WA-519P PROPSECTIVE RESOURCES (Table 1)

ERC Equipoise Ltd (ERCE) Independent Assessment of the Sasanof Prospect reproduced with
permission from ERCE and GLV.

Cautionary Statement – Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) related to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons

Summary of Results

Under instruction from Global Oil & Gas, ERCE completed independent technical studies resulting in geological chance of success ("COS") for the Sasanof Prospect shown in Table 1.

Table 1: Risking matrix and geological chance for sucess for the Sasanof Prospect

Chance of Success
Source Reservoir Trap Seal TOTAL
1 0.8 0.8 0.5 32%

The gross, unrisked prospective resources for the Sasanof prospect are shown in Table 2.


Table 2: Risking matrix and geological chance for sucess for the Sasanof Prospect

Gross Prospect Recoverable Gas (Bscf) Recoverable Condesate (MMstb)
1U 2U 3U Mean 1U 2U 3U Mean
Sasanof 2,611 7,248 17,794 9,082 59.8 176.2 449.3 226.1

The net working interest to WA-519-P, WA-390-P and WA-70-R are reported in Table 3.


Table 3: Western Gas Entitlement of Recoverable Unrisked Prospective Resources, Sasanof Prospect

Gross Prospect Recoverable Gas (Bscf) Recoverable Condesate (MMstb)
1U 2U 3U Mean 1U 2U 3U Mean
Net Entitlement Contingent
Resources

600.5

4,131.1

9,253.1

5,177.0

13.8

100.4

233.7

128.8


Table 4 – Net PRM Prospective Resources

  Recoverable Gas (Bcf) Recoverable Condesate (MMstb)
Sasanof 1U 2U 3U Mean 1U 2U 3U Mean
Net to WG519 600.5 4131.1 9253.1 5177 13.8 100.4  233.7 128.8
Net to PRM (12.5%)  75.1 516.4 1156.6 647.1 1.7 12.6 29.2 16.1

Notes:

  • COS represents the geological chance of success of at the proposed Well Sasanof-1 location (as of 1st August 2021) in WA-519-P. The Prospective Resources have not been adjusted for the chance of development. Quantifying the chance of development (COD) requires consideration of both economic contingencies and other contingencies, such as legal, regulatory, market access, political, social license, internal and external approvals and commitment to project finance and development timing. As many of these factors are out-with the knowledge of ERCE they must be used with caution.
  • The Prospective Resources presented here are the result of probabilistic method using Monte Carlo simulation for a single zone reservoir.
  • Gross Prospective Resources include volumes off-block to WA-519-P in permits WA-390-P, WA-70-R and WA-538-P.
  • Net working interest Prospective Resources are based on the permits WA-519-P, WA-390-P and WA- 70-R on-block volumes and Western Gas’s 100% working interest.

Based on ERCE analysis, Sasanof has a geological chance of success of 32%. This relatively high chance of success is based on the following:

TARGET CHARACTERISTICS DESCRIPTION
Reservoir Proven with excellent reservoir properties in nearby wells
Charge Updip from the low CO2 and high liquids Mentorc discovery. Seismic attributes indicate gas
Seal Top seal proven at Mentorc, lateral seals from shale filled channels and pinch-out
Trap Stratigraphic/structural trap. Trap styles proven at nearby fields and from analogues


Professional Qualification ERCE

ERCE is an independent consultancy specialising in petroleum reservoir evaluation. The work has been supervised by Mr Stewart Easton, General Manager of ERCE’s Asia Pacific office, a Professional Geologist registered as a Fellow of the Geological Society and a member of the Society of Petroleum Engineers with over 23 years of experience in the oil and gas industry.

Sasanof Licence information and Cautionary Statements follow.

Project Name Exploration Permit Status (In Application/ Granted) Registered Holder (%)
Sasanof WA-519-P Granted Western Gas (519P) Pty Ltd (100%)

Reporting Notes for Sasanof Prospect

  • The Prospective Resource information in this document is effective as at 1st August 2021 (Listing Rule (LR) 5.25.1)
  • The Prospective Resources information in this document has been estimated and is classified in accordance with SPE PRMS (Society of Petroleum Engineers Petroleum Resources Management System) (LR 5.25.2)
  • Undiscovered PIIP categorisation (LR 5.25.3) has been used in conjunction with prospective resource estimates (LR 5.2.25.2).
  • The (“Net”) Prospective Resource information in this document are 100% of prospective resource volumes for the Sasanof Prospect as PRM will have to first earn the 12.5% interest in WA 519-P by fulfilling its obligation under the HOA. If PRM completes its obligation, it will then disclose the net prospective resource numbers to PRM in subsequent disclosures. (LR5.25.5)
  • The Prospective Resource for gas has been determined probabilistically for GIIP and then analogue gas recovery factors used to these probabilistically determined numbers to give the final prospective resource numbers. For condensate prospective resources, a low, mid and high condensate gas ration was used from adjacent fields and applied to the low, mid and high case GIIP to determine CIIP. Prospective resource numbers for condensate were then calculated using analogue low, mid and high case recovery factors applied to the low, mid and high CIIP. (LR5.25.6)
  • No conversion factors were used to determine the Prospective Resource figures (LR5.25.7)
  • Prospective Resources are reported on a low, best and high estimates in the most specific category that reflects degree of uncertaintyy. (LR5.28.1)
  • Cautionary statements have been included proximate to the Prospective Resource figures. (LR5.28.2)
  • Types of Permits/Licences held has been provided. (LR5.35.1)
  • The prospective resources for the Sasanof Prospect were based in part, on recently acquired proprietary seismic data, the Mary Rose seismic survey, which is confidential and is a proprietary license which Western Gas owns. PRM does not have exclusive access to publish data but its own due diligence in viewing this data was used in estimate the prospective resources. (LR 5.29)
  • Prospective Resource figures have been calculated based on existing publicly available seismic and well data, including 15 wells in the surrounding areas and incorporating the Mary Rose seismic data. (LR5.35.2)
  • Details of the proposed future work program for the Prospective Resource have been provided above which is the drilling of Sasanof-1 (LR5.35.2)
  • An assessment of the chance of discovery and chance of development of the prospective Resource has been provided above.(LR5.35.3)
  • The Prospective Resource figure is unrisked. (LR5.35.4)
  • Qualified Petroleum Reserves and Resources Evaluator (QPRREV) sign-off appears above. (LR5.41 and LR5.42)