Ann: Cerro de Chaga-1 (Panizza) Spuds, page-3

ASX RELEASE
13 November 2017
Cerro de Chaga-1 (Panizza) Spuds

• Second well Cerro de Chaga-1 spuds
• First well Cerro Padilla-1 recovered oil to surface confirming hydrocarbon
  prospectivity in Uruguay
  Petrel Energy Limited (ASXRL) announces that Schuepbach Energy Uruguay SRL (SEU) mobilised the rig to the Cerro de Chaga-1 well site last week and spudded late Friday. At the time of reporting the rig had drilled to 100m, run and cemented surface casing and was waiting on cement to set prior to installation of the BOP. Cerro de Chaga-1 is the second exploration well to be drilled as part of this programme in the Norte Basin Uruguay on concessions covering 3.5 million acres. (Working Interests Petrel 51% : Schuepbach Energy LLC 49%).
  The objective of the conventional Cerro de Chaga-1 well is to:

• Test largest regional high with 4-way dip closure
• Confirm extent, quality and maturity of Devonian source and reservoir rock
• Test quality and maturity of secondary Permian source rock - Mangrullo Shale
• Confirm existence of deeper sedimentary sequence
  Managing Director, Mr David Casey, said “after successfully completing testing at Cerro Padilla-1 and recovering a small amount of oil to surface for the first time in Uruguay we are excited to commence drilling at Cerro de Chaga-1 (Panizza). With multiple targets and objectives this well represents an important next step in our assessment and understanding of the hydrocarbon prospectivity of the Norte Basin”