A year of continued production and revenue growth Operations and Financial Review Cue continued on its growth pathway, achieving a revenue of $51.6 million, 16% higher than the previous year. This progress was driven by a 45% increase in revenue from onshore Australian assets and a 12% increase from Indonesia. This is the highest production revenue reported by the Company since 2010, demonstrating the success of its growth strategy. We reported a profit after tax of $15.2 million, a decrease of 5.3% and EBITDAX of $30.9 million. Cue closed the year with a cash balance of $15.2 million, including $4 million of drawn loans, ensuring our continued ability to fully fund planned development and exploration activities. Reported revenue from the Mereenie, Palm Valley and Dingo fields in the Amadeus Basin, onshore Australia, increased 45% to $11.9 million due to a full year of reporting, production growth at Palm Valley from the PV-12 well, and strong prices realised for contracted and uncontracted gas. Due to production gains from ongoing development drilling, the PB oilfield in the Mahato Production Sharing Contract (PSC) in Indonesia contributed the most revenue to the Company, accounting for $18.7 million. The field’s gross oil production increased from 4,700 barrels of oil per day (bopd) at the start of the year to 6,400 bopd by the conclusion of the year. A revenue receivable of $5.1 million is recorded against the Mahato PSC, which is due to Domestic Market Obligation (DMO) oil sales to the Indonesian Government under the PSC. Typically, funds from DMO sales are received within a normal invoicing cycle period, however, due to ongoing negotiations concerning the interpretation of the DMO clause in the PSC, payments to the Mahato JV partners have been delayed. Subsequent to the year end, Cue has received $3.2 million of the $5.1 million receivable. Administration expenses of $2.5 million were low and maintained in line with the previous year, excluding business development costs, as the Company managed non-operated projects efficiently. Cue made an early repayment of $3 million of an outstanding $7 million unsecured loan from New Zealand Oil & Gas on June 29, 2023, as part of its ongoing capital management program, $4 million of debt remains unpaid. Cue’s strong free cash flow permitted this debt reduction, and the Company will continue to consider further debt reduction as part of Capital Management activities. 6 Cue Energy Resources Limited Annual Report 2023
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