Muralim PSC Update, page-7

Extracted from NGY's 2023 Annual Report on Muralim PSC which was released today -

On 1 August 2022, MEMR via SKK Migas has approved an additional exploration period until 18 July 2023. NuEnergy has
in 2021, successfully completed permeability tests and drilled to the targeted depth of 724 meters in vertical depth, at the MU005 (Twin) well. Four coal seam formations were confirmed between the depth of 547 meters to 669 meters. NuEnergy will
now continue the dewatering process to determine the gas productivity for future development. The completion of the
production testing and dewatering process was impacted and delayed by multiple factors as below:
i) changes in environmental regulations in September 2021, resulted in NuEnergy only being issued the environmental
permit by the Ministry of Environment of Indonesia in January 2022. Prior to obtaining the permit, the production testing
and dewatering activities had to be suspended;
ii) COVID-19 lockdowns imposed in the supplier’s country, the delivery of the necessary equipment to conduct the
dewatering process was delayed; and
iii) water production from the MU-005TW well, is higher than earlier expected and this has slowed the progress to complete
the dewatering process.

Due to the high-water production causing a delay in the completion of the dewatering process, NuEnergy had discussed with
SKK Migas to extend the exploration period beyond the deadline of 18 July 2023. SKK Migas has agreed and has made a
recommendation of a 19 months extension of the exploration period, to MEMR. NuEnergy plans to improve the dewatering
rate by activating an existing adjacent well, MU-006. To date, there are a total of six wells that have been previously drilled
in the Muralim PSC.