AOGL.L Regulatory News (AOGL)

Attis Oil & Gas Ltd / Index: AIM / Epic: AOGL/ ISIN: VGG6622A1057 / Sector: Oil and Gas

23 March 2020

Attis Oil & Gas Ltd ('the Company')

Extension of Bridge Loan Facility

Update on Sale of Assets, Memorandum of Understanding, and Operational Update

Extension of Bridge Loan Facility

Attis Oil and Gas Ltd (AIM: AOGL), the AIM listed oil and gas company, announces a one month extension of the five-month senior secured funding facility of £460,000 with 6 shareholders and the Company's COO, Thom Board and Chairman, Paolo Amoruso due for payment on or before 21 March 2020. Further extensions will be evaluated by the loan holders on a month to month basis. The material terms of the facility comprise interest of 10% per annum accruing monthly and paid with principal at the end of the five month term, a fixed and floating charge over the Company's Zink and Austin assets, and the issue of 460 million five-year warrants priced at 0.1 pence per share.

Disposal of Assets

The Company's previously announced plan to dispose of its interests in the Austin Field, Zink Ranch and Fort Worth continues to progress. Current commodity price fluctuations have made the operation and sale of the Austin Field more challenging. In order to preserve cash, reduce wear and tear on the assets, and reduce ongoing cost, the Austin Field will be shut in until oil prices rebound. The Company continues to advance the sale of Zink Ranch with multiple parties, but the current environment has created a liquidity crunch requiring an extension to the time to close. It is expected that Forth Worth will be sold for the plug and abandonment liability to a third party.

Memorandum of Understanding ("MOU")

The Company continues to work towards the completion of a transaction with a North American focused oil company and under the previously announced MOU (see RNS of 2 January 2020). The current market environment has delayed the raising of the cash resources and securing the assets needed for a mutually agreeable transaction, but the parties remain committed to finding a path forward in the near future. As soon as the conditions are satisfied, the parties will seek to complete the transaction including publishing the AIM admission document seeking approval by Attis' shareholders.

Company Operations

Subsequent to the Company's previously stated disposal strategy, COVID-19 has increased pressure on operations due to restrictions on movement of our office and field staff. The Company has further closed the oilfield services division and terminated all employees associated with that work, is cutting operational and overhead cost, settling existing debts where possible. Furthermore, the Company is also evaluating other opportunities in order to enter into strategic mergers or reverse takeovers in order to survive the depressed market conditions.

Paolo Amoruso, Attis' Executive Chairman said, "It has been an extremely challenging quarter for the Company and the Board is working to preserve shareholder value, obtain the best price for the assets and where necessary, cut costs and non-profitable divisions in this depressed commodity environment. We are further taking all steps necessary to shut in oil wells in anticipation of further restrictions on the movement of people. I thank the loan holders for the extension of the loan repayment period and all shareholders in this very difficult time".

**ENDS**

For further information visit www.attisog.com or contact the following:

About Us

Attis Oil & Gas Ltd is an AIM-traded (London Stock Exchange) North American-based energy company. It is actively pursuing a primary recovery oil strategy focused on re-stimulating wells within mature producing basins with immediate cash flow from projects that are shallow, low risk with low levels of capex and infrastructure already in place. Attis is also seeking to develop new drill opportunities within both existing & new acreage.