PERTH, WESTERN AUSTRALIA — (June 26, 2020)

Black Mountain Oil and Gas (BMOG), an experienced upstream unconventional oil and gas operator that has recently referred a six well drilling and Hydraulic Fracture Stimulation (HFS) program to the WA Environmental Protection Authority (EPA) in accordance with Recommendation 34 of the Final Report from the Independent Scientific Panel Inquiry into HFS in Western Australia. The same report confirmed that properly regulated, executed and located, HFS poses low risks to people and the environment. The report made 44 recommendations to further reduce the risks associated with HFS. BMOG will comply with these recommendations.

The proposed HFS program, situated within the Canning Basin on EP 371, follows on from previous HFS activities in the region in 2015. This program was undertaken with no impacts on the environment and the full support of the Yungngora and Warlangurru Traditional Owners from Noonkanbah Pastoral Station. BMOG has a good relationship with the community, their support is ongoing and well documented.

The program and any subsequent field development will provide material employment, contracting and associated economic benefits to Noonkanbah and the West Kimberley region. Development of the Canning Basin by BMOG would substantially benefit the Australian economy through jobs, investment, decreased natural gas prices for consumers and businesses, and decreased carbon emissions.

The US added ~500,000 new jobs from shale development through 2019 and decreased Henry Hub natural gas prices from US$12.80 in 2008 to US$1.73 in 2020; these are savings that directly transferred to consumers and industrial clients who were end users of the natural gas, resulting in even more job and investment for the area. Additionally, natural gas power has approximately 50% less CO2 footprint than thermal coal; Australia still generates a high proportion of its energy from coal.

The combination of more gas and cheaper gas, that will be available due to development in the Canning Basin will drive Australia in the direction of decreased coal consumption and significantly less CO2 emissions.