Ann: Half Yearly Report and Accounts, page-2

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'The Company has been engaged with the Yemen Minister of Oil & Minerals (“Minister”), His Excellency Aws Al-Aud, since hisappointment in January 2018, seeking his support for the restart of production at the An Nagyah Oilfield by way of trucking to YemenGovernment owned pipeline transport and export facilities. Access to these facilities are part of the Contractor’s rights containedwithin the Block S-1 Production Sharing Agreement.Petsec Energy’s Executive Chairman, Mr. Terrence Fern, and Managing Director, Mr. Syed Bokhari, met with the Minister in May 2019to share the Company’s restart plans for the An Nagyah Oilfield with supporting technical and financial capabilities. The Ministershowed considerable interest in the restart plan, expressing a desire to have the field in production within six months to coincidewith the expected completion of a 16 inch oil pipeline connecting Block 5 (to which Block S-1 is connected) to the Block 4 exportpipeline. He also encouraged Petsec to seek joint venture partners to co-invest in the development of Block S-1 which holds fourundeveloped fields in addition to the developed An Nagyah Oilfield.Subsequent to the meeting with the Minister, Petsec Energy sent a team of oil field production experts in June 2019 to the An NagyahOilfield in the Shabwah Province of Yemen to evaluate the condition of the facilities and prepare final production start-up plans. Theevaluation team consisted of an international production facilities expert, four Yemeni oil field professionals, Petsec Energy staff, anda representative of the Yemen Ministry of Oil & Minerals.The team found the facilities to be in good condition allowing for an early production start-up. Local staff and contractors were keento see an early restart of production.Final plans are being prepared for the production start-up that include all technical work and equipment/services required, contractsupport and manpower ramp up, transport and access to export facilities, and export sales agreements, OCMs and governmentapproved restart budgets. It is expected this plan will be concluded within the next month allowing for an immediate restart of onsiteoperations on receipt of the Yemen administrative consents.In response to the Minister’s suggestion that Petsec Energy seek further investors in the development of Yemen oil resources, Petsechas engaged with several E&P companies interested in a joint venture in Block S-1 which includes the An Nagyah Oilfield. The initialdiscussions have been encouraging. '

GLTAH