ENEGEX LIMITED — Interim / Quarterly Report 2019

Oct 30, 2018

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Level 21, 500 Collins Street Melbourne Victoria 3000 Australia Tel: (+61 3) 8610 4700 Fax: (+61 3) 8610 4799 Email: admin@enegex.com.au

QUARTERLY ACTIVITY REPORT

30 September 2018

Interest in WA-54-R Greater Cornea Fields

The company holds a 14.875% working interest in the Cornea Joint Venture (Cornea JV) comprised of:

Enegex Limited 14.875% Octanex Group (ASX Code: OXX) 18.750% Cornea Resources Pty Ltd (Operator) 13.100% Others 53.275%

The Greater Cornea Fields (being the Cornea, Focus and Sparkle Oil Fields and the Cornea North (Tear) Gas Field) are located in the Browse Basin, offshore from Western Australia and held via a Retention Lease (WA-54-R).

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Figure 1 Greater Cornea Field Retention Lease Location Map

The Greater Cornea Fields present a large in-place oil resource contained in a challenging reservoir. At the time the Retention Lease was applied for and granted, production uncertainty was identified as the primary constraint to development. Cornea’s attributes make is particularly sensitive to well construction and execution and it is of critical importance to maximise reservoir management and sweep efficiency.

Having identified a production test well (a well designed to achieve threshold productivity and prove up well construction methods and technologies) as a key milestone for progressing commercialisation of Cornea, The Cornea Joint Venture (Cornea JV) designed a Retention Lease program consisting of studies work in the first three years of the Lease term to support a production test well in Year 4.

Commercialisation is not a static matter and the oil price environment since late 2014 posed a significant challenge to the Cornea field’s commerciality, having rendered as non-viable field development concepts that were previously considered as potentially viable. Consequently, although the Cornea JV’s work completed in the first three years of the Lease supported a technically feasible well, it did not support a successful production test well indicative of commerciality.

The Cornea JV therefore applied in March 2017 to vary the terms of the Lease work program and, in August 2017, to suspend and extend the term of the Lease in order to carry out additional work. That additional work (Integrated Reservoir Modelling) was identified as necessary in order to underpin the design of a production test well responding to the changed oil price environment.

In late May 2018 (being the first month of year-5 of the Retention Lease) the Cornea JV was advised that the Joint Authority intends to vary the work program to move the year-4 well to year-5, but not to suspend the term of the Retention Lease.

During the quarter, the Cornea JV made a submission to the Joint Authority regarding the intended decision. This included commentary on the practical difficulties imposed by the Joint Authority’s intended decision and the timing thereof, including the lack of time in which to complete the varied year-4 work program (advised after the end of year-4), timing for completing the year-5 work program and difficulties created for timing of a renewal application for the Lease. No response has yet been received from the Joint Authority.

Activities during the quarter focussed on execution of compressed work program elements to support design, procurement and consent activities for the year-5 production test well and preparation for application for renewal of the Lease.

Energy Storage Innovation

Enegex is open to other natural resource opportunities that may present.

With oil prices continuing to languish, we have considered other avenues where our future may lie. In particular, with advances being made in energy generation and storage, Enegex is seeking to become involved in innovations that are transforming the storage of energy. Our involvement in energy storage and services may take a variety of forms including direct participation, joint venture and equity investment.

Our initial initiatives are to investigate and to undertake corporate investment in the following areas:

• Strategic energy storage minerals

• Energy storage technologies

Quarterly Activities Report for the quarter ended 30 September 2018

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• Alternative and renewable energy sources

Corporate

The Company’s share register advised its new business and mailing addresses during the quarter, which are now:

Office address: Automic Level 5, 126 Phillip Street Sydney NSW 2000 Mailing address: Automic GPO Box 5193 Sydney NSW 2000

By Order of the Board

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R J Wright

Company Secretary Melbourne, Australia 31 October 2018

Quarterly Activities Report for the quarter ended 30 September 2018

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