Cue Energy Resources Limited Directors' report 30 June 2023 6 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Consolidated Entity') consisting of Cue Energy Resources Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2023. Directors The names of Directors of the Company in office during the year and up to the date of this report were: Alastair McGregor Andrew Jefferies Peter Hood AO Richard Malcolm Rod Ritchie Samuel Kellner Marco Argentieri Chief Executive Officer Matthew Boyall Chief Financial Officer and Company Secretary Melanie Leydin Principal activities The principal activities of the group are petroleum exploration, development and production. Corporate governance statement Details of the Company's corporate governance practices are included in the Corporate Governance Statement set out on the Company's website at: https://www.cuenrg.com.au/site/About-Us/corporate-directory. Dividends There were no dividends paid, recommended or declared during the current or previous financial year. Financial performance The Consolidated Entity reported a net profit after tax of $15.21 million for the year ended 30 June 2023 (FY 2023), as compared to a net profit of $16.07 million for the year ended 30 June 2022 (FY 2022). This was mainly attributable to a $5.69 million profit after tax on $18.71 million in revenue generated from the Mahato PSC, which drilled an additional 7 production wells during the year, increasing production from 4,700 bopd at the beginning of FY 2023 to 6,400 bopd at 30 June 2023. Maari’s net profit after tax decreased by $1.13 million to $4.22 million on $9.51 million in revenue for FY 2023 (FY 2022: net profit after tax of $5.35 million), primarily arising from an increase in production costs of $1.61 million. The onshore Australian assets, acquired on 1 October 2021, contributed $1.02 million profit after tax (FY 2022: loss after tax of $0.50 million) on $11.89 million in revenue for the year ended 30 June 2023 (FY 2022: $8.21 million), primarily as a result of a full year's results being reflected in FY 2023 supplemented by additional gas revenue generated by the commencement of production at the PV-12 well in December 2022. The FY 2023 net profit after tax includes $2.22 million in exploration and evaluation expenses in FY 2023 (FY 2022: $1.53 million). The Group also recognised a $9.51 million deferred tax asset (30 June 2022: $1.78 million) on carried forward tax losses it now considers it will be able to use to offset future taxable income. Directors’ report 29 Cue Energy Resources Limited Annual Report 2023
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