Summary of PAC investor briefing with SM 12:00pm AEDT 26/10/2023

Some notes from the PAC call today. It jumped around a bit but I have kept it in the order of the discussion.

• Very happy with results to date. Very strong gas shows in Upper Angwa, similar strong gas shows in Lower Angwa. Decision has been made to mobilise the liner for future flow test which speaks to the confidence of what they have seen to date.

• Currently drilling ahead to 3,750m. May deepen depending on what they see. Depends on mud gas, real time data and cuttings. Ability to drill to approx. 4,000m, decision not made yet. Very, very happy with what they have encountered so far.

• More fluorescence in the UA, strong gas shows, showing presence of gas and liquid hydrocarbons in the UA and LA.

• Decision to drill M2 was based on calibrated seismic data. On reflection, M1 was a long way down dip and right on the flank of the structure. M2 location has shown HCs 450m updip and 7km away from M1 which is very encouraging.

• Approaching planned TD of 3,750m. Have seen multiple and thicker reservoirs in the LA so far. A couple of days to TD depending on rates. Rates are improving as they go lower. Much more enjoyable experience to M1 drilling. Expect even further improvement on drilling efficiency on next well.

• Budget - AFE perspective (time) just below budget, from a $$ spend perspective they are doing very, very well. Quite a way under the original budget. Praises for the team, the changes made have worked better than expected.

• Gas vs oil - Early to say but expectations are very liquid rich, will depend on samples. Possibly getting leaner as they get lower. Higher background may be due to changes in source rock and charging characteristics of M2 location. Seen a lot of source rock in M2. Source and charge is very complex, will never be fully understood (he was making a joke about this with one of his engineers).

• Reservoir quality improving at M2, perhaps due to higher energy environment, courser grain size being indicated in results. Less related to depositional compaction and more likely due to depositional environment.

• Flow rate - Wire line after TD, then pressure measurements. This will provide mobility’s (close approximation to permeability), will provide profile throughout reservoirs. Should provide a good indication if it will flow but IVZ are fairly confident that it will flow which is why they are installing the liner.

• TD in approx. 2 days then condition the hole for logging (displace the mud and pull out the drill pipe roughly 24 hours). Have to go get a few sets of data before sampling. Upsized suite of tools, couple of extra items. FMI (image log), CMR (mag resonance porosity/permeability). 4^th run will be sampling run. Roughly 5-7 days from when they start wireline logging to start getting samples depending on pressure points. They want as many samples as they can but only need one to declare a discovery. So approx. 8-10 days from today for sampling results.

• Rotary sidewall cores taken after samples, then shoot Vertical Sampling Profile (VSP) will provide detailed calibration to seismic data. Then run a liner and suspend the well. No mention of 6” drill.

• Flow test needs to be designed and the equipment ordered. ETA Q2 2024 for M2 well flow test. Rig will stay at M2, next drill pad will be prepared for drilling after the well test at M2.

• Dande showed residual HCs, potentially there was some escape through the side of the top of the horst block. Very good reservoir quality throughout Dande and Pebbly Arkose so likely many options available in other locations in the structure with no cross fault leakage. Very encouraged that HCs are getting into the upper horizons. Needs to be targeted in a better location.

• Target depth expected in the next couple of days even if the TD is closer to 4,000m.

• Borehole stability – No tight hole or sticky spots. Drilling mud has been completely overhauled, lower mud weight, most important though is changed fluid chemistry so the mud is not reacting with the clays. Comfortable with hole condition. Only started drilling the 8.5” hole section last week Saturday so borehole only open for 12 days so far. M1 started to break down 26-30 days in. They continue to monitor.

• Need to wait to do fluid sampling to know if they have light oil and gas. On-board fluid analyser on board the sampling tool. If there is oil it will be very light and volatile. Light and sweet which is what you want.

• PPSA discussions with government are ongoing. Progressing well. Expect to have it wrapped up before the end of the year.

• Carbon project change of legislation in Zimbabwe, moving forward through registration process. A long way down the priority list at this stage due to M2 activities.

• Funding post M2 – Expecting a number of opportunities to open up. SM has been in South Africa as well as Zimbabwe over the last weeks. South African banks are lining up due to energy market being so dire. All sitting with CAs waiting for IVZ to announce a discovery to get moving on funding options. Have a look at companies in the region like Renergen (https://www.renergen.co.za/) and Kinetiko ( https://www.kinetiko.com.au/about-overview/) starting to see South African banks and Sate Institutions moving in to provide funding due to energy crisis.

• Also looking at early commercialisation options. Post M2 flow test looking to take into pilot production. A number of interests in gas to power as well as small scale LNG. May enable a portion of self-funding. Pilot plant being planned for after M2 flow test.

• A lot of groups sitting on the sidelines for farmin discussions. Africa Energy week there was a lot of discussion with a lot of people asking to come and have a look once IVZ are ready. People are waking up to the commercialisation options that IVZ presents

Nergel