Share placement and SPP Funds to be utilised for: Vali-1 ST1 fracture stimulation and flow testing • Initial engineering and design work to connect Vali-1 ST1 to • Moomba gas flowline network Corporate overheads • Working capital • APRIL 2020
Quality balanced portfolio Geographically diverse and gas focused portfolio with two early discoveries Galilee ilee Basin in “Deeps JV” Bonap aparte te Basin in • Albany Field a 61 km 2 robust structure EP 126 • Multiple oil and gas play types • Numerous prospects and leads in frontier region • Gas flow from Albany-1 Cooper er / Eroman manga Basin ins ATP 2021 and PRL 211 • ATP 2021: Close to infrastructure; Vali gas discovery • PRL 211: Odin structure similar to Vali Cervantes Oil Perth th Basin in Prospect • Cervantes located between the Otway way Basin in Hovea, Jingemia and Cliff Head PEL 155 and PEP 171 oil fields • Onshore Penola Trough reinvigorated with recent gas discoveries 2 April 2020
Vali capital raising Vali gas discovery offers near-term production and cash flow 1 that will deliver shareholder value • Raised $30 million at IPO and delivered on what we said • Vali gas discovery a prime development candidate WHY with the potential to be producing within 12 months 1 • Two discoveries and the potential for early revenue • Gas prices for Eastern Australian markets are robust • Vali-1 ST1 is ready for fracture stimulation and flow WHY NOW testing • Cooper Basin has opex and transport advantages LINE OF SIGHT • Vali is close to gathering systems and processing / • Once flow test successful, connection work and TO CASH FLOW national pipeline grid, meaning quick tie-in 1 negotiating sales gas agreement can be pursued quickly 1 • Vali flow test success to generate funding options for • Parties have expressed interest in Nangwarry CO 2 FUTURE CAPITAL OPTIONS pipeline infrastructure discovery The amount being sought is modest compared to potential value of Vali, but we believe sufficient to unlock this value and demonstrate commerciality 1 Subject to regulatory and JV approvals, successful fracture stimulation and flow test and access to infrastructure 3 April 2020
Projected eastern and south-eastern gas production vs demand New gas discoveries required to ease dependence on the development of ‘undeveloped 2P Reserves’ and ‘anticipated developments’ to meet forecast demand Federal Govt has identified gas companies and the • delivery of gas to market as an essential service Forecast demand, underpinned by LNG, expected to be • steady over the long-term Significant investment, needed to meet forecast demand, • required for: – Development of 2P undeveloped – Development ‘anticipated developments’ – Development of new discoveries – Exploration and appraisal Domestic gas prices are independent of collapsing global • oil prices Recent ACCC papers indicate contract gas pricing in the • Source: AEMO March 2020 Gas Statement of Opportunities $9-10/GJ range AEMO states in its March 2020 Gas Statement of Opportunities that: “ Actual operational constraints, particularly within the Victorian DTS, may lead to transportation limitations throughout the system, creating potential supply gaps during peak winter days from 2024.” 4 April 2020
Market cap vs Broker valuations of Vali gas discovery (net to VEN) Both MST Access and T aylor Collison analysts value Vali gas discovery well above VEN market cap 35-40 Vali-1 ST1 gas discovery announced on 16 January 2020 • 40 ERCE independently certified Vali 2C Contingent Resource of 35.6 • 35 35 37.7 Bcf (gross), 18.9 Bcf (net) MST Access Vali valuation risked (published 21 February 2020) • 30 T aylor Collison Vali valuation range unrisked (published 21 • January 2020) 25 MST and TC valuations for Vali only and do not consider: • A$ million 20 – Nangwarry CO 2 discovery; – Galilee Basin 2C Contingent Resources; 15 – PRL 211 Odin gas prospect; and 10.7 10 – Cervantes oil prospect 5 0 Market cap MST Access Vali TC Vali unrisked 27/4/20 risked valuation valuation range 5 April 2020
Vali gas discovery pre-connection work Vali gas discovery has independently certified 2C Contingent Resource booking and potential to be producing within 12 months 1 INITIAL TIE-IN FRACTURE FLOW TESTING 2 DESIGN WORK 3 STIMULATION ~$0.3m ~$0.1m ~$1.4m Initial engineering and design work Complete well • Ensure Covid-19 compliant • • Identify pipeline corridor Commence flow back of stimulation fluid • Engage service providers • • and gas Negotiate tie-in terms • Fracture stimulate reservoir (standard • Commence flow test practice for the Cooper Basin) • Complete project management • timeline Pressure testing to confirm reservoir Fracture stimulate multiple zones • • volumes Identify long-lead items • Flowback of stimulation fluid from all zones 2 • Initiate gas sales discussions • ….to be followed by gas sales agreement, resource to reserve conversion and infrastructure build and tie -in 1 Subject to regulatory and JV approvals and access to infrastructure 2 Subject to successful fracture stimulation 3 Subject to successful flow test 6 April 2020
Indicative Vali timeline – next 12 months Quick tie-in of Vali possible due to its close proximity to gathering systems and processing / national pipeline grid 1 Q4 2020 Q1 2021 Q3 2020 Stimula imulate te First and flow w Market rket gas, , negot otiat iate e Conver Co vert t production ion Cooper er / Eroma manga Connect ect to infrastr frastruct cture 1 acce cess infra frastr truct cture e test t Vali-1 2C to Basin ins – ATP TP 2021 and cash agree eement ments 1 ST1 1 gas 2P 1 2P ion 1 generation disco cover very Capit ital l rais aisin ing funds 1 Subject to regulatory and JV approvals, successful fracture stimulation and flow test and access to infrastructure 7 April 2020
Delivering in a short time frame; funding required for next steps Quality gas portfolio built around the strong eastern Australian domestic gas demand and pricing IPO PLANNING EXECUTION DELIVERING NEXT STEPS $30 m millio llion rais aised ed, , with th a • Expedit editiou ious portfolio tfolio • Rais ise e funds to fract acture e • Right team am put t in place ace • Gas discover covery y at Vali-1 1 focu cus on: build ild stimu mulat late e and flow test t ST1 1 (Net et 2C 18.9 9 Bcf) • Valu lues es-based ed cultur lture Vali li-1 1 ST1 • Farm-in in to Cooper er • Under erexplo explored ed • CO CO 2 disco cover very y at t • Long-term erm visio ion for Basin in: : ATP 2021 and Austr tralian lian basin ins Nan angwa warry-1 • Initia itiate te works ks to tie Vali li susta tain inable able growth wth PRL RL 211 into to Cooper er Basin in • Permits mits close to • Evalu aluatio tion of multip ltiple le flowlin wlines 1 • Farm-in in to Perth th Basin in: : infrastr frastruct cture e with th a asset t acquis isitio itions / Cerva vantes Prospect ect high chan ance ce of • Negot otiat iate e gas as cont ntra ract ct farm-in in opportunit tunities ies develop elopmen ment and genera erate te cash flow • Drillin lling of four wells, , • Secur urin ing of PACE CE gran ant t • First t measurable le gas with thin in 12 months 1 one e fract acture e stimu mula lated ted • Assets ets with th the e from m SA Govt vt flow w in the e Galilee lilee Basin in poten tentia tial l for early rly cash h (Net et 2C 46 PJ) flow w genera eratio ion 1 Subject to regulatory and JV approvals, successful flow test and access to infrastructure 8 April 2020
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