Shareholder Update: Macallum New Energy firing on all cylinders

Dear Shareholders and Subscribers,

Thank you for your support through our recent IPO and early stages of our journey as an ASX-listed company. Since joining the bourse less than two months ago, our focus has been clear - deploy capital efficiently, move quickly into exploration activity and establish strong operational momentum from the outset.

Domestic fuel security and the oil and gas sector have come back into sharp focus in recent weeks, as Australia’s heavy dependence on foreign fuel imports has been exposed by disruption across global energy markets. With inadequate fuel reserves, the country remains too dependent on imports to meet a significant portion of its traditional energy demand and remains exposed to global politics outside of our control. We see this as a clear opportunity for domestic exploration companies seeking to shore up local resources and add supply into the ever-evolving energy mix. The State Premiers have made news this week, calling on the federal government to fast-track environmental approvals for oil and gas projects under “national interest” exemptions. In Western Australia we have a Government highly supportive of our industry and that recognises exploration is key to unlocking domestic energy security.

Against this backdrop, we have prioritised decisive execution. IPO capital has been deployed immediately into advancing our technical exploration programs, enabling us to transition rapidly from capital raising to field activity. This has allowed us to accelerate data acquisition that will de-risk and further mature our pipeline of defined targets within our acreage in the North Perth Basin.

Our current focus remains on seismic activity to inform future exploration and potential drilling activity within our 100%-owned permits in the onshore North Perth Basin, Western Australia. This isa region with a long and successful history, with 26 petroleum accumulations discovered to date, 13 of which are commercial.

The Perth Basin is home to some of the largest onshore conventional oil and gas fields in Australia that produce naturally without the need for fracking. The historical Dongara Oil and Gas Field alone had initial reserves of approximately 15.3 billion cubic metres of gas and 10 million barrels of oil. (Source: Geoscience Australia).

More recent discoveries confirm the ongoing potential of the basin to supply local gas and oil. The Waitsia Gas Field (2014) is reported to contain gross 2P reserves of 820 petajoules (Source: AWE), the Lockyer Gas Project (2021), a reported maiden 2C contingent gas resource of 435 petajoules of sales gas and the Erregulla Oil Project with a reported 2C contingent oil resource of31.6 million barrels (Source: MinRes). Since the discovery of the Kingia play at Waitsia just 12 years ago, a further 1,000 petajoules of new gas has been discovered in the basin by various operators.

We have made strong early progress across our seismic programs. The Barberton 3D seismic survey is now past the halfway point of the data acquisition phase and is progressing to schedule.

In parallel, we have secured approval of the Environmental Plan for the Condor 2D seismic survey, completing all regulatory requirements ahead of its scheduled commencement in mid-May.

These are important early milestones and reflect our disciplined approach to capital deployment - converting funds raised into tangible progress in the field as quickly and efficiently as possible to mature our portfolio of oil and gas opportunities.

We have also taken steps to broaden our capital markets reach and build on the strong international interest received during our IPO. The appointment of Greenwood Capital Partners supports our engagement with UK and European investors.

With key milestones already delivered and exploration activities progressing to plan, we believe the company is well positioned to maintain this momentum and continue advancing towards the next phase of value creation. This entails detailed processing and analysis of our new seismic data, which will lead to updated prospect descriptions in Q3this year and enable a pathway to drilling our best opportunities.

Thank you again for your ongoing support. I look forward to keeping you updated as our operational activity progresses.

Kind regards,

Andy Furniss
Chief Executive Officer
Macallum New Energy