Prominence Energy : Bowsprit Reserves Update

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ABN 69 009 196 810

(Incorporated in Western Australia)

Level 2, 30 Richardson Street

West Perth, WA 6005

PO Box 1786, West Perth WA 6872

T+61 8 9321 9886 F [phone]

21 July 2022

ASX Limited

Company Announcements

Level 4, 20 Bridge Street

SYDNEY NSW 2000

BOWSPRIT RESERVES UPDATE

Prominence Energy Ltd ("PRM") is pleased to announce that Netherland, Sewell & Associates, Inc. has provided a reserves update as at 30 June 20221 for the Bowsprit Project (PRM 100%), located in Shallow Inland waters, Louisiana USA. The reserves estimates were prepared using a combination of Probabilistic and Deterministic Methods on the basis of a WTI oil price of $85.82.

	Resource										Net Cash
			Confidence Level			Net Reserves to PRM			Flow			NPV10			NPV10
	Classification
										(NPV0)
							Oil	Gas		US$ Million	US$ Million	A$ Million
							Mbbls	MMSCF
				1P (90%)	106.9	81.3		2.93		2.34		3.39
	Undeveloped
								18.33		15.35		22.25
	Reserves T1		2P (50%)	330.7	254.7
				3P (10%)	643.5	502.9		38.57		29.47		42.71

Table 1 - Bowsprit Field Upper Miocene Reservoir T1 Reserves @US$85.82/bbl (0.69AUD/USD)

PRM drilled the vertical, exploration Bowsprit-1 well in October 2021 to test an undrilled part of the field. Unfortunately, the potential field extension did not contain oil. The vertical well was suspended at a depth of 3,000ft deep for future re-entry and side-tracking. The proven oil in the T1 Upper Miocene Sand was not affected by the vertical well result and remains a viable target for a single well development via a sidetracking of the vertical well and tie back to a nearby platform. Netherland, Sewell & Associates, Inc. has reassessed the project including the vertical well data, and issued the attached letter report confirming the T1 reserves. The last assessment done in February 2020 assumed an oil price of US$55.85/bbl and the current report reflects an average price of WTI of US$85.82/bbl for the life of field. If current oil prices of around US$100/bbl were sustained, the project would have a higher value.

Currently PRM is in the process of detailed well planning, costing and completion design for a side track of the Bowsprit-1 well. PRM will continue to assess all the options for how to move forward with the Bowsprit Project in the second half of 2022 after the Hurricane season.

Authorised by the Board of Prominence Energy Limited

• Initial Bowsprit Reserves Report ASX release made on 5th February 2020

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Yours faithfully

Alexander Parks

Managing Director

For further information please contact Prominence Energy at:

Web: www.ProminenceEnergy.com.au

Phone:	[phone]
Email:	[e-mail]

2

For personal use only

July 19, 2022

Mr. Alex Parks

Prominence Energy Ltd.

30 Richardson Street, Level 2

West Perth, Western Australia 6005

Dear Mr. Parks:

In accordance with your request, we have estimated the proved (1P), proved plus probable (2P), and proved plus probable plus possible (3P) reserves and future revenue, as of June 30, 2022, to the Prominence Energy Ltd. (PRM) interest in certain oil and gas properties located in Bowsprit Field, State Lease 21754, Breton Sound Area, St. Bernard Parish, offshore Louisiana. We completed our evaluation on or about the date of this letter. It is our understanding that PRM plans to use this report to seek a partner or financing. This report has been prepared using constant price and cost parameters specified by PRM, as discussed in subsequent paragraphs of this letter. The estimates in this report have been prepared in accordance with the definitions and guidelines set forth in the 2018 Petroleum Resources Management System (PRMS) approved by the Society of Petroleum Engineers (SPE); definitions are presented immediately following this letter. Monetary values shown in this report are expressed in United States dollars ($) or thousands of United States dollars (M$).

As presented in the accompanying summary projections, Tables I through III, we estimate the net reserves and future net revenue to the PRM interest in these properties, as of June 30, 2022, to be:

	Net Reserves	Future Net Revenue (M$)
	Oil	Gas		Present Worth
Category	(MBBL)	(MMCF)	Total	at 10%
Proved (1P)	106.9	81.3	2,933.9	2,340.4
Proved + Probable (2P)	330.7	254.7	18,331.9	15,354.5
Proved + Probable + Possible (3P)	643.5	502.9	38,565.1	29,470.1

The oil volumes shown include crude oil only. Oil volumes are expressed in thousands of barrels (MBBL); a barrel is equivalent to 42 United States gallons. Gas volumes are expressed in millions of cubic feet (MMCF) at standard temperature and pressure bases. Oil equivalent reserves shown in this report are expressed in thousands of barrels of oil equivalent (MBOE), determined using the ratio of 6 MCF of gas to 1 barrel of oil.

Reserves categorization conveys the relative degree of certainty; reserves subcategorization is based on development and production status. The 1P reserves are inclusive of proved undeveloped reserves only. Our study indicates that as of June 30, 2022, there are no proved developed producing or proved developed non- producing reserves for these properties. The estimates of reserves and future revenue included herein have not been adjusted for risk. The field was discovered by Shell in 1955 and produced 76.4 MBBL of oil from 1960 to 1961. This project is subclassified as justified for development because there is a reasonable expectation that financing will be in place at the time of the final investment decision. This report does not include any value that could be attributed to interests in undeveloped acreage beyond those tracts for which undeveloped reserves have been estimated.

Gross revenue shown in this report is PRM's share of the gross (100 percent) revenue from the properties prior to any deductions. Future net revenue is after deductions for PRM's share of royalties, production taxes, capital costs, abandonment costs, and operating expenses but before consideration of any income taxes. The future net revenue has been discounted at an annual rate of 10 percent to determine its present worth, which is shown to indicate the

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effect of time on the value of money. Future net revenue presented in this report, whether discounted or undiscounted, should not be construed as being the fair market value of the properties.

As requested, prices used in this report are based on the 12-month unweighted arithmetic average of the first-day-of-the-month price for each month in the period July 2021 through June 2022. For oil volumes, the average West Texas Intermediate spot price of $85.82 per barrel is adjusted for PRM's estimates of quality, transportation fees, and market differentials. For gas volumes, the average Henry Hub spot price of $5.133 per MMBTU is adjusted for PRM's estimates of energy content, transportation fees, and market differentials. All prices are held constant throughout the lives of the properties. The average adjusted product prices weighted by production over the remaining lives of the properties are $90.11 per barrel of oil and $5.646 per MCF of gas.

Operating costs used in this report are based on internal budgets of PRM and appear reasonable based on our knowledge of similar operations in the area. These costs are intended to include PRM's estimate of the per-well overhead expenses necessary to operate the properties along with estimates of costs to be incurred at and below the district and field levels. Operating costs have been divided into field-level costs and per-unit-of-production costs. As requested, operating costs are not escalated for inflation.

Capital costs used in this report were provided by PRM and are based on internal estimates of the anticipated remaining development costs. Capital costs are included as required to sidetrack an existing recently drilled well and for associated production equipment. Based on our understanding of future development plans, a review of the records provided to us, and our knowledge of similar properties, we regard these estimated capital costs to be reasonable. Abandonment costs used in this report are PRM's estimates of the costs to abandon the well net of any salvage value. As requested, capital costs and abandonment costs are not escalated for inflation.

For the purposes of this report, we did not perform any field inspection of the properties, nor did we examine the mechanical operation or condition of the wells and facilities. We have not investigated possible environmental liability related to the properties; therefore, our estimates do not include any costs due to such possible liability. Additionally, we have made no investigation of any firm transportation contracts that may be in place for these properties; no adjustments have been made to our estimates of future revenue to account for such contracts.

The reserves shown in this report are estimates only and should not be construed as exact quantities. Proved reserves are those quantities of oil and gas which, by analysis of engineering and geoscience data, can be estimated with reasonable certainty to be commercially recoverable; probable and possible reserves are those additional reserves which are sequentially less certain to be recovered than proved reserves. Estimates of reserves may increase or decrease as a result of market conditions, future operations, changes in regulations, or actual reservoir performance. In addition to the primary economic assumptions discussed herein, our estimates are based on certain assumptions including, but not limited to, that the properties will be developed consistent with current development plans as provided to us by PRM, that the properties will be operated in a prudent manner, that no governmental regulations or controls will be put in place that would impact the ability of the interest owner to recover the reserves, and that our projections of future production will prove consistent with actual performance. If these reserves are recovered, the revenues therefrom and the costs related thereto could be more or less than the estimated amounts. Because of governmental policies and uncertainties of supply and demand, the sales rates, prices received for the reserves, and costs incurred may vary from assumptions made while preparing this report.

For the purposes of this report, we used technical and economic data including, but not limited to, well logs, geologic maps, seismic data, well test data, production data, estimated price and cost information, and property ownership interests. The reserves in this report have been estimated using a combination of deterministic and probabilistic methods; these estimates have been prepared in accordance with generally accepted petroleum engineering and evaluation principles set forth in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the SPE (SPE Standards). We used standard engineering and geoscience methods, or a combination of methods, including volumetric analysis, analogy, and reservoir modeling, that we considered to be appropriate and necessary to classify, categorize, and estimate volumes in accordance with the 2018 PRMS definitions and guidelines. As in all aspects of oil and gas evaluation, there are uncertainties inherent in the

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interpretation of engineering and geoscience data; therefore, our conclusions necessarily represent only informed professional judgment.

The data used in our estimates were obtained from PRM, public data sources, and the nonconfidential files of Netherland, Sewell & Associates, Inc. and were accepted as accurate. Supporting work data are on file in our office. We have not examined the titles to the properties or independently confirmed the actual degree or type of interest owned. The technical persons primarily responsible for preparing the estimates presented herein meet the requirements regarding qualifications, independence, objectivity, and confidentiality set forth in the SPE Standards. We are independent petroleum engineers, geologists, geophysicists, and petrophysicists; we do not own an interest in these properties nor are we employed on a contingent basis.

Sincerely,

NETHERLAND, SEWELL & ASSOCIATES, INC.

Texas Registered Engineering Firm F-2699

By:

C.H. (Scott) Rees III, P.E.

Executive Chairman

By:	By:
Joseph M. Wolfe, P.E. 116170	John G. Hattner, P.G. 559
Vice President	Senior Vice President
Date Signed: July 19, 2022	Date Signed: July 19, 2022
JMW:SRC