CUE ENERGY RESOURCES LIMITED ABN 45 066 383 971 Annual Report 2025
About us Cue Energy Resources Limited is an oil and gas production and exploration company with production assets in Australia, Indonesia and New Zealand. Offices are located in Melbourne, Australia and Jakarta, Indonesia. 1 Highlights 2 Chairman’s overview 4 Financial and operations review 9 Reserves and resources 14 Task Force on Climate-Related Financial Disclosure (TCFD) Statement 22 Directors’ report 38 Auditor’s Independence Declaration 39 Consolidated Statement of profit or loss and other comprehensive income 40 Consolidated Statement of financial position 41 Consolidated Statement of changes in equity 42 Consolidated Statement of cash flows 43 Notes to the financial statements 69 Consolidated entity disclosure statement 70 Directors’ declaration 71 Independent Auditor’s Report 75 Shareholder information 78 Corporate Directory General Legal Disclaimer Various statements in this document may constitute statements relating to intentions, opinion, expectations, present and future operations, possible future events and future financial prospects. Such statements are not statements of fact, and are generally classified as forward looking statements that involve unknown risks, expectations, uncertainties, variables, changes and other important factors that could cause those future matters to differ from the way or manner in which they are expressly or impliedly portrayed in this document. Some of the more important of these risks, expectations, uncertainties, variables, changes and other factors are pricing and production levels from the properties in which the Company has interests, or will acquire interests, and the extent of the recoverable reserves at those properties. In addition, exploration for oil and gas is expensive, speculative and subject to a wide range of risks. Individual investors should consider these matters in light of their personal circumstances (including financial and taxation affairs) and seek professional advice from their accountant, lawyer or other professional adviser as to the suitability for them of an investment in the Company. Except as required by applicable law or the ASX Listing Rules, the Company does not make any representation or warranty, express or implied, as to the fairness, accuracy, completeness, correctness, likelihood of achievement or reasonableness of the information contained in this document, and disclaims any obligation or undertaking to publicly update any forward-looking statement or future financial prospects resulting from future events or new information. To the maximum extent permitted by law, none of the Company or its agents, directors, officers, employees, advisors and consultants, nor any other person, accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of the information contained in this document. Reference to “CUE” or “the Company” may be references to Cue Energy Resources Limited or its applicable subsidiaries.
EBITDAX $30.3m Net Cash $10.8m Net Profit After Tax $6.3m Final Dividend 0.5cps Capital Returns to Shareholders 2cps Highlights Revenue $54.8m Indonesia: $29.9m Australia: $12.5m New Zealand: $12.4m $14m returned during FY25 1 Cue Energy Resources Limited Annual Report 2025
Dear Shareholders, Another strong performance from Cue, with revenue for the year of $55 million, an increase of 10% on the previous year. This is despite volatility in the Brent oil price, which began FY2025 at US$86/bbl and closed the year under US$70/ bbl, a level that has continued into FY2026. These price movements impacted oil revenue from both our Mahato and Maari operations but were offset by strong production performance and contract gas sales. In Australia, gas markets remain tight, with consistent commentary from the ACCC and the Australian Energy Market Operator forecasting shortages and potential LNG imports into Eastern Australia. Cue remains confident in demand fundamentals for our gasproducing assets in the Northern Territory. We drilled two successful development wells at the Mereenie field during the year to increase production, and we continue to assess further opportunities to unlock value from these assets. During the year, Cue was a major gas supplier to the Northern Territory, helping fuel the Territory’s power stations that complement renewable energy sources. In Indonesia, the Mahato PSC continued its strong performance with 11 new wells entering production during FY2025 and further drilling underway in early FY2026. This work has materially contributed to maintaining high production levels. In New Zealand, the Maari field was granted a 10-year extension of its Petroleum Mining Permit, now valid to 2037 and we welcomed further regulatory clarity and policy from the government. During FY2025, we returned $14 million in dividends (2 cents per share) and announced a final dividend of 0.5 cents per share ($3.5 million) for FY2025. Since the beginning of calendar year 2024, we’ve returned a total of $31.5 million in dividends, a strong testament to the underlying strength of our production portfolio and capital management approach. The final dividend was reduced compared to the previous period to balance shareholder returns with growth options as we progress towards a Final Investment Decision on the Paus Biru development, where Cue has the opportunity to increase our participating interest in the project by 10%.Cue enters FY2026 in a sound position, with a strong production base and clear pathways towards growth. Looking ahead: The Paus Biru FID process is progressing, with final administrative steps underway. If approved, Cue will benefit not only from increased production in 2027, but also from a potential increased interest in the project. At Mahato, continued well drilling is expected, with plans underway to begin development of the Telisa reservoir later in FY2026. In our 2025 Reserves and Resources Statement, we identified an additional 0.8 million barrels of contingent resources in the Telisa, which may be converted to 2P reserves over the coming year. We also expect to undertake further exploration activities in the Mahato PSC in early CY2026. With the Maari permit tenure extended to 2037, optimisation efforts will continue, supported by a stable production base. August production averaged 5,600 barrels of oil per day, the highest monthly rate in over five years, highlighting the impact of recent work. We continue to assess options to expand production further and are awaiting final clarity on New Zealand’s financial assurance requirements, which may impact cashflow allocations from the Maari project. I want to acknowledge our team’s continued dedication, our partners’ collaboration and our shareholders’ ongoing support. With a strong production base, a clear path to growth, and a prudent approach to investment, Cue is well-positioned to navigate the evolving energy landscape and deliver sustainable long-term value. We remain focused on maintaining financial strength, progressing high-quality opportunities, and adapting to the challenges and opportunities of the energy transition. Alastair McGregor Chairman Chairman’s overview I am pleased to present the Cue Energy Resources Limited Annual Shareholder Report for 2025, another successful year of financial performance, operational delivery, and value returned to shareholders. 2 Cue Energy Resources Limited Annual Report 2025
3 Cue Energy Resources Limited Annual Report 2025
This result reflects the continued strength of Cue’s diversified portfolio, underpinned by stable production and improved pricing across key assets. Revenue from Cue’s onshore Australian assets increased by 11% to $12.5 million, supported by the start-up of two new Mereenie wells and higher contract gas prices. The Maari asset in New Zealand recorded a 23% increase in revenue to $12.4 million, due to four crude liftings during the year compared to three in the previous year. Revenue from the Mahato PSC increased by 19%, driven by a 30% increase in sales volumes and a high level of cost recovery associated with field operations and new development drilling. Annual production totalled 602 thousand barrels of oil equivalent (mboe), which was broadly consistent with the previous year. In Indonesia, production from the Mahato PSC increased by 9%, reflecting the contribution of new development wells drilled during the year. At Maari, production remained stable overall, although some wells, including MN1 and MR4, were offline during the year due to workovers and repairs. In Australia, production from the onshore fields was steady, with two new Mereenie wells contributing strongly and offsetting natural field decline and customer nomination variability. Production costs increased to $29 million, up from $20 million in FY2024. Approximately half of this was associated with increased operating cost at Mahato and Mereenie, reflecting the greater number of producing wells and associated field activities. The remainder includes production cost increases associated with timing of Maari inventory sales. Net cash generated from operations was $24 million, a strong result that reflects the quality of the Company’s production base and the benefit of portfolio diversification. The cash balance at the end of the year was $10.8 million with no debt. Following a Maari crude lifting receipt in early July, cash at 31 July 2025 increased to $12.6 million. Cue has demonstrated commitment to provide returns to shareholders, with a total of $14 million in dividends paid to shareholders during the year. The Cue Board has approved a final dividend for FY2025 of 0.5 cents per share, returning an additional $3.5 million to shareholders. The company continues to benefit from strong assetlevel performance and financial discipline. Its producing portfolio has delivered another year of solid revenue, cashflow, and shareholder returns, providing a strong foundation for continued growth and development in FY2026. Financial and operations review Cue navigated through a year of global uncertainties and market volatility to deliver another strong financial performance in FY2025, generating revenue of $54.8 million from oil and gas production across its assets in Australia, Indonesia, and New Zealand, a 10% increase compared to the previous year. 4 Cue Energy Resources Limited Annual Report 2025
16.3 10.8 52 21 1 24 15 14 0 Opening Cash 1 July 2024 Receipts from customers + interest Payments to suppliers Taxes, Royalties and Finance Exploration Net Cash from Operating activities Net Cash used in Investing activities Dividends FX Closing Cash 30 June 2025 FY 2024 Cashflow $ million 6 FY 2025 Cashflow $ million 230 98 185 88 224 148 170 89 0 100 200 300 400 500 600 700 FY2024 FY2025 Cue Net Production thousand barrels of oil equivalent (mboe) Onshore Australia Sampang Mahato Maari Cue Net Production thousand barrels of oil equivalent (mboe) $24 Million Cash Generated from Operations shows the Quality of Cue's Production Base 602 mboe production was consistent with the previous year Financial and operations review continued 5 Cue Energy Resources Limited Annual Report 2025
Mahato PSC 11.25% Sampang PSC 15% PMP38160 (Maari/Manaia) Oil Production Oil Production Gas Production 5% N EALAND AUSTRALIA H ad Office Melbourne Cue Jakarta Office Amadeus Basin Mereenie (OL 4/5) Gas and Oil Production Palm Valley (OL 3) Dingo (L7) 15% 7.5% 15% Joint operations Financial and operations review continued 6 Cue Energy Resources Limited Annual Report 2025
Australia MEREENIE, PALM VALLEY AND DINGO FIELDS CUE INTERESTS Mereenie [OL4 & OL5] 7.5% Palm Valley [OL3] 15% Dingo [L7] 15% Operator Central Petroleum Limited The Mereenie, Palm Valley, and Dingo fields generated $12.5 million in revenue for Cue during the year, representing an 11% increase on the previous year. This uplift was driven by a 15% increase in Mereenie gas production, with the WM29 and WM30 development wells drilled during the second and third quarters, continuing to exceed pre-drill expectations. Higher contracted gas prices during the year also contributed to the improved revenue. In the first half of the year, Cue announced the execution of six-year gas sales agreements with the Northern Territory Government, effective from 1 January 2025. These contracts provide firm gas delivery from 2025 to 2030, with additional flexibility for gas sales from the WM29 and WM30 wells and during NGP outages. In the final quarter of the year, a conditional gas supply agreement with Arafura Rare Earths for the Nolans Project lapsed, as the condition precedent of Arafura’s Final Investment Decision, was not met. The WM29 and WM30 development wells were successfully drilled and brought online during the second and third quarters. Both wells exceeded production expectations and contributed an estimated 9 terajoules (TJ) per day of additional gas production from Mereenie. The Northern Gas Pipeline (NGP) remained closed for most of the year due to reduced production from the offshore Blacktip field. During this time, gas sales from the Mereenie and Palm Valley fields were directed to Northern Territory gas sale agreements, which mitigated the impact of the pipeline outage. Oil sales from the Mereenie field were partially constrained by offtake arrangements in Q4 and July 2025 which reduced gas capacity by approximately 5%. Gas volumes are not currently being impacted. Planning progressed during the year for the drilling of two development wells in the Palm Valley field. In the final quarter, the Environmental Management Plan for these wells was approved by the Northern Territory Government. Any future well drilling decisions remain subject to joint venture approval. Indonesia MAHATO PSC CUE INTERESTS Cue 11.25% Operator Texcal Energy Mahato Inc The PB field in the Mahato PSC continued to be a strong contributor to Cue’s performance, generating $23.5 million in revenue during the year, a 19% increase over the previous period. Production averaged 510 barrels of oil per day (bopd) net to Cue, with total field output exceeding 7,000 bopd by the end of the financial year. Development activities progressed under the Operator’s approved Field Development Optimisation Plan (OPL) Phase 2, which includes drilling fourteen new development wells, converting one existing production well to a water injection well, and establishing three new drilling locations and associated production infrastructure. Eleven wells were drilled and brought into production during the year, supported by the construction of new surface facilities. The final two wells under the OPL2 plan were completed at the start of FY2026, bringing the approved development program to completion with thirty four production wells operating in the PB field. Current oil production is sourced from the Bekasap A,B and C reservoirs. The Operator is planning further development of the field, targeting production growth from the Telisa reservoir. This shallower, regionally extensive formation is already producing in other Central Sumatra Basin fields and was successfully tested in an existing well during the year. It is expected that production from the Telisa will be accessed through a combination of new wells and existing well recompletions. The PC-1 exploration well was drilled during the second quarter to a total depth of 5,800 feet. The well did not return commercial hydrocarbons on testing and was subsequently plugged and abandoned. Exploration data acquisition and evaluation continued throughout the year, and further drilling is expected to be proposed by the Operator during FY2026. Financial and operations review continued 7 Cue Energy Resources Limited Annual Report 2025
Cue and Medco remain committed to progressing both the Paus Biru development and the necessary PSC extension to enable the project’s future development. The proposed development plan for Paus Biru includes drilling a single well, installing a wellhead platform, and constructing a 27-kilometre subsea pipeline to connect the field to existing Oyong infrastructure. Subject to final approvals, gas production is expected to commence in 2027 at a rate of 20-25 mmcfd. New Zealand PMP 38160 (Maari/Manaia) CUE INTERESTS Cue 5% Operator OMV Cue’s revenue from the Maari and Manaia fields increased by 23% over the previous year to $12.4 million, primarily due to the sale of an additional cargo during FY2025. Annual production was broadly in line with FY2024 averaging 4,800 barrels of oil per day (bopd) (100%) although production during the fourth quarter was impacted by downhole Electric Submersible Pump (ESP) faults in the MN1 and MR4 wells. These outages resulted in the temporary loss of approximately 1,500 bopd. Both wells were repaired following the end of the financial year and subsequently resumed production at their pre-workover rates. The MR6a production well, which has been offline for a number of years, was successfully recompleted during the year and returned to production from the third quarter. High uptime and continued optimisation of well performance, including though water injection and targeted well management, supported strong production throughout the year. Prior to the ESP-related outages, daily oil production from the Maari/Manaia fields was consistently maintained above 5,500 barrels of oil per day (100%). During the year, the Maari field reached a significant milestone, with cumulative production surpassing 50 million barrels of oil since production commenced in 2009. The Maari permit was recently granted a 10-year extension to 2037 by the New Zealand Government. Indonesia SAMPANG PSC CUE INTERESTS Cue 15% Operator Medco Energi The Oyong and Wortel gas fields generated $6.4 million in revenue for Cue during the year, underpinned by long-term, fixed-price contracts for gas sales to Indonesia Power’s Grati Combined Cycle Gas Power Plant. The decrease in revenue from the prior year reflects lower production due to natural field decline and a temporary technical issue at the Wortel field, which followed a scheduled maintenance shutdown in May. This issue halted gas production from Wortel for the remainder of the financial year but has since been remediated, with production restored subsequent to year end. Progress continued on the installation of a compressor at the onshore Grati gas processing plant. The compressor is designed to reduce wellhead pressure at the Oyong and Wortel fields, thereby improving production efficiency and enhancing overall gas recovery. Completion of this project is expected in the second quarter of FY2026. Discussions advanced between the Operator, Medco Energi Sampang Pty Ltd (Medco), and the Indonesian Government regarding key commercial terms for the Paus Biru gas development. These include a proposed extension of the Sampang Production Sharing Contract (PSC), which is currently due to expire in December 2027, as well as economic incentives critical to the project’s viability. Medco has submitted a request to amend the PSC to support development of Paus Biru, with both the PSC extension and fiscal incentives considered essential for a Final Investment Decision (FID) to be reached. During the year, Joint Venture partner Singapore Petroleum Sampang Ltd (SP Sampang) formally advised Medco and Cue that it will not continue as a participant in the PSC beyond the current term, including any participation the Paus Biru development. In accordance with the joint operating agreement, SP Sampang’s interest will be redistributed between Cue and Medco upon expiry. This redistribution may result in Cue increasing its participating interest in the PSC by up to 10%. Financial and operations review continued 8 Cue Energy Resources Limited Annual Report 2025
Reserves and Resources As at 30 June 2025, Cue’s 2P reserves of 5.5 mmboe have stayed consisent with the previous reporting period less actual production. An increase in 2P reserves was reported from Maari, due the better than expected production performance from the field. Sampang PSC 2P reserves were reduced as the Oyong and Wortel fields experienced faster than expected late life prodcution decline . Meerenie and Dingo reserves both A reduction in Mahato PB field 2P oil reserves from the producing Bekasap reservoir, was offset by the addition of 1.1 mmboe of Contingent (2C) Resource in the Telisa reservoir. The Telisa reservoir is expected to be the target of production growth in FY2026 and beyond and once commercialised, some or all of this Contingent Resource may be re-classified as reserves. Paus Biru gas resource remains as Contingent until a positive Final Investment Decision (FID) is made by Cue. 2P reserves by asset (mmboe) Mahato 1.1 Sampang PSC 0.4 Mereenie 2.0 Palm Valley 0.5 Maari 0.5 Dingo 1.0 5.5 mmboe Gas/Oil 2P reserves (mmboe) Oil 1.7 Gas 3.8 5.5 mmboe 9 Cue Energy Resources Limited Annual Report 2025
30 June 2025 Reserves and resources Net to Cue as at 30 June 2025 1P 1P 1P Developed Undeveloped Total Reserves Proven (1P) Gas Oil Equivalent Gas Oil Equivalent Gas Oil Equivalent Country Field/Permit PJ MMSTB mmboe PJ MMSTB mmboe PJ MMSTB mmboe AUSTRALIA Mereenie 8.5 0.1 1.5 0.2 0.0 0.0 8.7 0.1 1.5 Palm Valley 2.8 0.0 0.5 0.0 0.0 0.0 2.8 0.0 0.5 Dingo 2.8 0.0 0.5 2.8 0.0 0.5 5.5 0.0 0.9 NEW ZEALAND Maari 0.0 0.2 0.2 0.0 0.2 0.2 0.0 0.4 0.4 INDONESIA(1) Sampang PSC 0.7 0.0 0.1 0.0 0.0 0.0 0.7 0.0 0.1 Mahato 0.0 0.8 0.8 0.0 0.0 0.0 0.0 0.8 0.8 TOTAL RESERVES 14.7 1.1 3.5 3.0 0.2 0.7 17.7 1.3 4.2 2P 2P 2P Developed Undeveloped Total Reserves Proven & Probable (2P) Gas Oil Equivalent Gas Oil Equivalent Gas Oil Equivalent Country Field/Permit PJ MMSTB mmboe PJ MMSTB mmboe PJ MMSTB mmboe AUSTRALIA Mereenie 11.0 0.1 1.5 0.4 0.0 0.1 11.4 0.1 2.0 Palm Valley 3.1 0.0 0.5 0.0 0.0 0.0 3.1 0.0 0.5 Dingo 3.3 0.0 0.5 3.2 0.0 0.5 6.5 0.0 1.1 NEW ZEALAND Maari 0.0 0.2 0.2 0.0 0.3 0.3 0.0 0.5 0.5 INDONESIA(1) Sampang 1.2 0.0 0.2 0.9 0.0 0.1 2.1 0.0 0.4 Mahato 0.0 1.1 1.1 0.0 0.0 0.0 0.0 1.1 1.1 TOTAL RESERVES 18.6 1.4 3.9 4.5 0.3 1.0 23.1 1.7 5.5 2P Reserves reconciliation with 30 June 2024 (mmboe) Country Field/Permit 30 June 2024 Reserves FY 25 Production Discoveries/ Extensions/ Revisions 30 June 2025 Reserves AUSTRALIA Mereenie 1.9 0.1 0.2 2.0 Palm Valley 0.6 0.1 0.0 0.5 Dingo 1.0 0.0 0.1 1.1 NEW ZEALAND Maari 0.5 0.1 0.1 0.5 INDONESIA Sampang 0.9 0.1 -0.4 0.4 Mahato 1.5 0.2 -0.2 1.1 TOTAL RESERVES 6.3 0.6 -0.2 5.5 (1) I ndonesian Reserves are net of Indonesian Government share of Production. Production Sharing Contract (PSC) adjustments affect the net equity across the various reserve categories LEGEND: PJ Petajoules MMSTB Million Stock Tank Barrels mmboe Million Barrels of Oil Equivalent 10 Cue Energy Resources Limited Annual Report 2025
30 June 2025 Reserves and resources continued 2C Contingent Resources Field/Permit Gas (PJ) Oil (MMSTB) Total (mmboe) Mereenie 13.7 0.0 2.3 Palm Valley 0.6 0.0 0.1 Sampang - Jeruk 0.0 1.2 1.2 Sampang - Paus Biru 7.0 0.0 1.2 Mahato - Telisa 0.0 0.8 0.8 TOTAL CONTINGENT RESOURCES 21.3 2.1 5.6 Compliance Statements Oil and gas reserves, are reported as at 1 July 2025 and follow the SPE PRMS Guidelines (2018). This resources statement is approved by, based on, and fairly represents information and supporting documentation prepared by Echelon General Manager Assets & Engineering Daniel Leeman. Daniel is a Chartered Engineer with Engineering New Zealand and holds Masters’ degrees in Petroleum and Mechanical Engineering as well as a Diploma in Business Management and has over 15 years of experience. Daniel is also an active professional member of the Society of Petroleum Engineers. Echelon reviews reserves holdings twice a year by reviewing data supplied from the field operator and comparing assessments with this and other information supplied at scheduled Operating and Technical Committee Meetings. Daniel is currently an employee of Echelon Resources Limited whom, at the time of this report, are a related party to Cue Energy. Daniel has been retained under a services contract by Cue Energy Resources Ltd (Cue) to prepare an independent report on the current status of the entity’s reserves. As of the 1 July 2025, Echelon held an equity of 49.97% of Cue. Cue currently holds an equity position of 5%, 11.25% and 15% in the Maari, Mahato and Sampang assets respectively, though Production Sharing Contract adjustments at the Mahato and Sampang fields affect the net equity differently across the various reserve categories. In the Amadeus basin, Cue currently holds 7.5% equity in the Mereenie field and 15% equity in each of the Dingo and Palm Valley fields. For undeveloped reserves, the following project maturity sub-classes are assumed- at Mahato PSC, Undeveloped- Approved for Development, at Sampang PSC- Justified for Development, at Maari- Justified for Development, at Mereenie and Dingo- Justified for Development. For Sampang & Mahato PSC Contingent Resources, as the developments are not yet sanctioned, the economics and royalties are not yet known, therefore an assumed net effective equity is used of 15% for Paus Biru, 8.18% for Jeruk and 11.25% for Telisa (Mahato PSC). The Contingent Resource sub-classes are as follows- for Paus Biru, 2C Development Pending, for Jeruk and Telisa, 2C Development Unclarified, and for Mereenie and Palm Valley 2C Development On Hold. Estimates are based on all available production data, the results of well intervention campaigns, seismic data, analytical and numerical analysis methods, sets of deterministic reservoir simulation models provided by the field operators (OMV, Texcal, Medco and Central Petroleum), and analytical and numerical analyses. Forecasts are based on deterministic methods. For the conversion to equivalent units, standard industry factors have been used of 6Bcf to 1mmboe, 1Bcf to 1.05PJ, 1 tonne of LPG to 8.15 boe and 1TJ of gas to 163.4 boe. Net reserves are net of equity portion, royalties, taxes and fuel and flare (as applicable). All reserves and resources reported refer to hydrocarbon volumes post-processing and immediately prior to point of sale. The volumes refer to standard conditions, defined as 14.7psia and 60°F. The extraction methods are as follows; for Maari oil is produced to the FPSO Raroa and directly exported to international oil markets, at Mahato, it is via EPF facilities which includes an oil and water separation system, with the oil then piped 6km to the Petapahan Gathering Station, at Sampang, gas is gathering from the Wortel and Oyong fields and piped to shore where it is sold into the Grati power station, at the Mereenie and Palm Valley gas fields gas is gathered from the wells and ultimately collated into the Amadeus Gas Pipeline where sales vary to different customers within the region and further afield and at Dingo, gas is sold into Alice Springs and the Owen Springs power plant. Tables combining reserves have been done arithmetically and some differences may be present due to rounding. For the 2P change of reserves year-on-year, quoted as the reserves replacement ratio herein, the calculation is performed via; stated 2P total reserves as at 1 July 2025, divided by the sum of stated 2P total reserves as at 1 July 2024, less production during FY25 and any acquisitions, all in millions of barrels of oil equivalent. In this case RRR = 5.5 / (6.3-0.6-0.0) = 96%. 11 Cue Energy Resources Limited Annual Report 2025
Our Commitment At Cue, we remain committed to upholding high standards in health, safety, and environmental stewardship, recognising these as fundamental to our longterm business success. Our operations continue to be guided by a Board-approved Health, Safety and Environment (HSE) Policy, supported by a robust HSE Management system. The Operational Risk and Sustainability (ORS) Committee, comprising members of our Board of Directors, meets regularly to oversee and evaluate the company’s HSE initiatives and operational risk management. Working together with our Communities Cue is dedicated to building strong relationships with the communities in which we operate. Through our joint venture partnerships, we contribute to local well-being by supporting economic participation, education, infrastructure, and health initiatives. We continue to prioritise local and regional economic development in line with our Capturing Local Economic Benefits Policy, and we encourage our joint venture partners to adopt the same approach. In Indonesia, our Mahato PSC joint venture partner, Texcal Energy, led a range of community initiatives throughout the year in Riau province. These included the “Green Restoration of Our World” program, which saw the planting of 1,000 trees across seven regencies in the Province to commemorate Earth Day. During the Ramadan period, food supplies were distributed to families in need through the Safari Ramadan initiative in Tapung, with educational supplies donated to orphans in Tapung Village under the same program. Medco Energi, our Sampang PSC joint venture operator, also remained deeply engaged with communities surrounding our operations in East Java. Among this year’s initiatives was the planting of 300 trees to promote environmental restoration and the construction of an access road to improve daily travel for fishermen in Pulau Mandangin Village. The joint venture also supported environmentally friendly fishing practices by partnering with the Sampang Fisheries Service to provide training for local fishermen in Camplong District. Medco Energi launched a women’s microenterprise development program, supported local fishermen with the donation of fishing nets, and continued to fund youth empowerment programs, such as the salted duck egg production initiative in Camplong District. The year concluded with the planting of 180 trees in Trunojoyo Square in Sampang, reinforcing our commitment to local environmental care. Sustainability report Throughout 2025, Cue recorded zero lost time injuries and no significant spills across our operations. In our non-operated joint ventures, we continue to actively support and promote high standards of health and safety. As part of our governance practices, we review incident and safety reports, providing constructive feedback to help ensure safe, efficient and responsible operations across our asset base. 12 Cue Energy Resources Limited Annual Report 2025
In Australia, Cue’s onshore assets in the Northern Territory are operated by Central Petroleum, which continues to maintain strong ties with Traditional Owners, local communities, and other stakeholders. Central Petroleum actively supports Indigenous employment and local business development, with a significant proportion of onsite personnel identifying as Indigenous. Land access agreements remain in place through the Central Land Council (CLC), with whom Central maintains regular engagement on behalf of the joint venture. Cue also provided direct support to the Akeyulerre Aboriginal Corporation, reaffirming our long-standing commitment to working in partnership with Traditional Owner organisations in the region. In New Zealand, Cue’s Maari joint venture saw the successful delivery of two community projects under its three-year commitment with the South Taranaki District Council. The Aotea Park pump track officially opened in December 2024, creating an all-ages recreational facility designed to encourage physical activity and social connection. The second community initiative, a new jetty and surrounding area on the Patea River, has been recently completed and is expected to provide long-term benefits to the local community. Environment Stewardship Cue remains focused on working closely with our operators and joint venture partners to reduce the environmental impact of our operations. This year, we were pleased to see Medco Energi, operator of the Sampang PSC, awarded a Green PROPER 9 rating from Indonesia’s Ministry of Environment and Forestry. This highly regarded rating is reserved for companies that demonstrate bestpractice environmental management and a strong commitment to sustainable operations. Across all jurisdictions, we continue to support initiatives that reduce emissions, and improve environmental outcomes including energy optimisation, habitat restoration and emissions mitigation. 13 Cue Energy Resources Limited Annual Report 2025
This section outlines Cue Energy Resources’ approach to climate disclosure and climate risk management. It is structured in accordance with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). Statement from the Chief Executive Oil and gas production continues to be the core of Cue’s strategy. We undertake our activities in a sustainable manner, minimising emissions where practical while reliably providing energy to support community development. In our areas of production, it is increasingly recognised that natural gas will play an important role in the low-carbon energy mix going forward. In Australia, the Federal Government’s Future Gas Strategy confirms Australia’s commitment to supporting global emissions reductions and highlights that gas production must be optimised to help achieve this objective. Indonesia’s 2025-2030 Electricity Supply Business plan (RUPTL) includes 10.3GW of new gas-fired power capacity over the next five years, alongside planned increases in renewable energy generation. Energy security and clean energy transition are key future themes of the IEA’s World Energy Outlook 2024. As an energy producer supplying gas into domestic markets in Indonesia and Australia, we are proud to contribute to regional energy security and to provide fuel for firm power that complements intermittent renewable sources. The Mereenie field has been a reliable supplier of gas in the Northern Territory. During parts of FY2025, Cue and its joint venture partners supplied more than 50% of the gas required to power the Northern Territory. The NT grid relies heavily on gas-fired power generation, which reduces the need for higher-emission alternatives such as diesel. We monitor and report emissions from our own projects, and as a non-operating joint venture partner, we support our operators in reducing emissions at our project sites through new process, upgraded equipment, and optimisation of existing infrastructure. This report outlines how we assess and manage the risks and opportunities of climate change on our business. The Australian Government is phasing in new mandatory climate-related financial disclosures, which will apply to Cue from July 2027. We will transition to meet these new requirements and, in the meantime, continue reporting against the TCFD recommendations to provide stakeholders with a transparent view of our approach to climate risk. Matthew Boyall Chief Executive Officer Task Force on Climate-Related Financial Disclosure (TCFD) Statement 14 Cue Energy Resources Limited Annual Report 2025
Task Force on Climate–Related Financial Disclosure (TCFD) Statement continued Governance Climate-Related Risk Governance Process Cue has a governance structure in place to support management of all risks, including climate-related risks. These risks are overseen by the Operational Risk and Sustainability Committee, which reports directly to the Board. BOARD OF DIRECTORS • Board Charter • Cue Risk Management System • ASX Listing Rules and Corporate Governance Code (E.g. Principal 7, Recognise and Manage Risk) • Reviews reports from Operational Risk and Sustainability Committee and manages response BOARD OPERATIONAL RISK AND SUSTAINABILITY COMMITTEE • Reviews risks, including changes in risks reported from risk owners and management • Reports risk and opportunities to Board CUE MANAGEMENT • Regularly reviews and updates risk register • Allocates risk to risk owners • Reports risk register to ORSC STAFF HEALTH, SAFETY AND ENVIRONMENT PROCESS • Identifies and reviews site HS incidents and incorporates these into the risk register 15 Cue Energy Resources Limited Annual Report 2025
Board oversight The recognition and management of risks are outlined in the Company Charter, available in the Corporate Governance section of our website. The specific responsibilities are summarised below: Board – Review all risks, including climate-related risks and opportunities, and ensures they are appropriately managed to support the Company’s business strategy. – Understands the material risks faced by the Company and ensures appropriate risk management strategies and control measures are in place and actively implemented. Operational Risk and Sustainability Committee (ORSC) – Sets, reviews, and agrees on relevant risk policies, practices, frameworks, targets, and performance. – Is assigned, under its Charter, the responsibility for approving environmental policy and monitoring progress, including responses to climate change. Chief Executive Officer (CEO) – Accountable to the Board for the implementation of climate policies. – Responsible for the day-to-day operational oversight of climate risk and opportunities, including the management of climate-related objectives and targets. Management and Staff – Responsible for identifying, assessing, and managing risks as described in Cue’s risk register. Strategy Actual and potential impacts of climate-related risks and opportunities The Company produces oil and natural gas, supplying markets in Asia and the East Coast of Australia. Natural gas from Cue’s onshore Australian projects supports power generation and industrial use in the Northern Territory and the broader East Coast gas market. In Indonesia, all gas produced from the Sampang PSC is used for power generation, supporting economic growth in East Java by displacing electricity that might otherwise be generated using coal. Both internal and external forecasts support the continued demand for oil and gas, with ongoing economic value derived from production and reserves. Task Force on Climate–Related Financial Disclosure (TCFD) Statement continued 16 Cue Energy Resources Limited Annual Report 2025
Product demand Cue draws on various external and internal analyses to assess the ongoing demand for its products. Time Horizon Demand Short Term – In Australia, the Australian Energy Market Operator’s (AEMO) 2025 Gas Statement of Opportunities (GSOO), highlights rising risk of peak-day shortfalls and seasonal supply gaps in the southern states beginning in 2028, with annual supply gaps projected from 2029. – The ACCC also forecasts material gas shortfalls in the East Coast gas market, potentially emerging earlier, during the winter of 2026. – In Southeast Asia, the IEA’s Stated Policies Scenario (STEPS) forecasts a 20% increase in oil demand by 2030 relative to 2023 levels. Even in the Announced Pledges Scenario, demand is expected to grow by 10% by 2030. – The Indonesian government has set domestic production targets of one million barrels of oil per day and 12 Bcf/d of gas by 2030 to support domestic energy needs and reduce import dependency. – Indonesia’s state utility PLN forecasts the addition of 10 GW of gas-fired power generation capacity over the next five years, as outlined in its 2025 Electricity Supply Business Plan. Medium to Long Term – In the Northern Territory, Cue’s key Australian gas market, AEMO has identified a potential supply gap of 5–10 PJ annually between 2028 and 2039. This shortfall is attributed to increased industrial demand and the region’s continued reliance on gas-fired generation. – The Australian Government’s Future Gas Strategy states that under all credible net-zero scenarios, natural gas will be needed through to 2050 and beyond, although its production and use are expected to evolve. – In Southeast Asia, long-term oil demand is forecast by the IEA to grow by 28% by 2035 and to continue increasing through to 2050. Regulations Cue operates across multiple jurisdictions, each with its own regulatory framework. The Company continually assesses risks related to climate change, carbon pricing, and the physical impacts of environmental change. Strategic planning and adaptation remain key to ensuring both compliance and operational resilience. New Zealand New Zealand has a well-established Emissions Trading Scheme (ETS). Under this scheme, Cue is required to report annual greenhouse gas emissions and to purchase and surrender one New Zealand Unit (NZU) to the government for each tonne of carbon dioxide equivalent emissions. Cue incorporates modelled NZU prices in performance forecasts and sensitivity analyses for the Maari asset. Australia At present, Cue is not subject to participation in, or reporting under, any mandatory carbon pricing scheme in Australia. However, mandatory climate-related financial disclosure requirements have been introduced by the Australian Government and are scheduled to apply to Cue from July 2027, based on the current implementation timeline. Emissions from Cue’s onshore operations are reported annually by the field operator under the National Greenhouse and Energy Reporting (NGER) scheme. These emissions currently remain below the threshold required for coverage under the Safeguard Mechanism. Indonesia Indonesia has implemented a sector-based carbon pricing regulation, though it does not currently apply to Cue’s operations. Cue continues to monitor the evolving policy landscape in Indonesia, including the potential economic impacts of future climate-related regulations and environmental conditions. While these impacts remain uncertain at this stage, Cue remains alert to how they may influence asset value and operational performance over time. Task Force on Climate–Related Financial Disclosure (TCFD) Statement continued 17 Cue Energy Resources Limited Annual Report 2025
Alternative Energy Scenarios The Company monitors various energy outlooks and industry forecasts that include scenario-based projections. Under most scenarios, natural gas continues to play a significant role in supporting future energy systems. In both Australia and Indonesia, there is growing regulatory interest in capturing carbon emissions. If carbon capture and storage (CCS) becomes more cost-effective, Cue may consider emissions reduction through CCS; however, no current implementation plan exists. Cue also monitors ongoing advancements in CCS technologies, hydrogen development, and renewable energy integration to support long-term decarbonisation at its projects. While no investment or implementation decisions have been made to date, Cue remains engaged in exploring commercially and scientifically credible decarbonisation pathways. Risk Management Identify, Assess and Manage Climate Related Risks The Company follows a robust Risk Management System Framework. Climate-related risks are evaluated alongside broader business risks and recorded in a central risk register, which assesses controls, assigns ownership, and monitors treatment plans. These risks are reviewed regularly, incorporating operational considerations, industry developments, peer benchmarks, shareholder feedback, regulatory updates, and internal analysis by staff and contractors. Oversight of climate risk management is conducted through internal reviews by the Board’s Operational Risk and Sustainability Committee. The Chief Executive is accountable for climate risks, including those associated with individual assets and financial investments impacted by climate change. These risks have potential financial and operational implications, affecting overall profitability. However, climate-related financial, market, and socio-political risks also present opportunities, particularly in the increasing use of natural gas as a compliment to renewable energy and as a lower-emission alternative to coal. Calculating Climate risk In New Zealand, the Emissions Trading Scheme (ETS) sets a market-based carbon price. New Zealand Units (NZUs), representing one metric tonne of Carbon dioxide or its equivalent in other greenhouse gases, are purchased and surrendered by Cue for the Maari production asset. NZU prices and emissions forecasts are incorporated into sensitivity testing. In Australia, Cue is not currently subject to a mandatory carbon pricing scheme. However, project and investment assessments factor in a range of potential carbon pricing outcomes. Likewise, in Indonesia, the prevailing carbon pricing regulations do not currently apply to Cue’s operations. The Company monitors various emerging policies and regulatory frameworks that could impact asset value and operational performance. Given the evolving nature of carbon pricing mechanisms and rapidly changing policy environments across the countries in which Cue operates, or is evaluating projects, carbon price modelling is based on the best available information and estimates at the time. For physical climate risks across all asset interests, the Company maintains comprehensive insurance coverage and regularly participates in technical review meetings to assess engineering and infrastructure vulnerabilities. Risk Types and Controls To categorise risk, the Company uses the following time horizon definitions: – Short-term: 0-5 years – Medium-term: 5-10 years – Long-term: 10+ years Task Force on Climate–Related Financial Disclosure (TCFD) Statement continued 18 Cue Energy Resources Limited Annual Report 2025
Risk Type TCFD Category Description Time Control/Strategic Response Physical Risk – Acute Strategy/Risk Management More frequent extreme weather (e.g. cyclones, floods) disrupting exploration or logistics. S–M Integrate extreme weather into emergency planning; assess design resilience; JV operator influence. Physical Risk – Chronic Strategy/Risk Management Long-term sea level rise or temperature shifts affecting asset value, insurance, or infrastructure. L Screen climate projections in longterm planning; evaluate adaptation options; influence JV planning. Non-Physical – Policy & Legal Strategy/Risk Management Changes in carbon pricing (e.g. Safeguard Mechanism, Indonesia ETS) increasing JV operating costs. M–L Include carbon cost in financial models; monitor regulation; reflect in investment decisions. Non-Physical – Technology Strategy Inability to access viable CCS or hydrogen solutions, delaying abatement options. M–L Watch technology readiness levels; review pilot projects; explore collaborative R&D via JVs. Non-Physical – Market Strategy Long-term decline in gas demand due to electrification and renewables. M–L Maintain gas as a transition fuel narrative; explore new regional markets; track global scenarios. Non-Physical – Reputation Strategy/Risk Management Stakeholder concern over GHG emissions intensity or lack of net-zero plan impacting license to operate. M Increase transparency; align with ISSB/TCFD; assess non-operator influence on JV emissions. Non-Physical – Capital Access Metrics & Targets Difficulty securing funding without ESG disclosures or interim climate targets. M Strengthen climate reporting; consider setting intensity metrics; engage with financiers. Non-Physical – Litigation Risk Management Exposure to legal challenges over emissions, biodiversity impacts, or climate disclosure gaps. M–L Ensure regulatory compliance; monitor litigation trends; maintain robust documentation. Non-Physical – JV Misalignment Governance/ Strategy Different risk appetites or priorities across JV partners on climate matters. M–L Raise expectations via JV governance; document preferred positions; seek influence through forums. Opportunity – Energy Source Strategy Rising value of gas in transition scenarios as a firming fuel supporting renewables. S–M Promote gas' transition role in investor communications; position assets in low-carbon portfolios. Opportunity – CCS/Hydrogen Strategy Potential to participate in future CCS hubs or hydrogen infrastructure development. L Track commercial feasibility; map local storage sites; assess JV partner readiness. Opportunity – Renewable Integration Strategy Scope to integrate solar or hybrid systems into facility power to reduce Scope 1 emissions. M Assess off-grid renewables; collaborate with JV operators; build internal capability. Opportunity – Nature-based Offsets Strategy Credible offset options (e.g. land restoration, reforestation) emerging in Australia and Indonesia. M Identify compliant schemes; evaluate cost per tonne; ensure additionality and permanence. Opportunity – Stakeholder Positioning Governance/ Strategy Early action or transparent disclosure may enhance brand and JV attractiveness. S–M Strengthen sustainability messaging; improve ESG ratings; engage key stakeholders proactively. Task Force on Climate–Related Financial Disclosure (TCFD) Statement continued 19 Cue Energy Resources Limited Annual Report 2025
Metrics and Targets Emissions Cue reports on its proportion share of Scope 1 and Scope 2 emissions, based on emissions arising from production activities across its fields and office operations. For Scope 1, detailed monthly emissions reports are submitted by the field operators at Maari, Sampang and Mahato. Central Petroleum, which manages Cue’s onshore Australia assets, reports emissions through the National Greenhouse and Energy Reporting (NGER) scheme. Monthly emission estimates provided by Central Petroleum are also used in Cue’s reporting. Scope 1 Emissions Year Emissions (tCO2e) * Boe Produced Intensity Factor (tCO2e per boe) FY22 12,688 634,010 0.020 FY23 14,674 629,954 0.023 FY24 13,852 631,027 0.022 FY25 14,359 601,771 0.024 * P rior years updated to include onshore Australia data. FY25 onshore Australia emissions are estimated. NGER reporting will be published by Cue when available later this year. Scope 2 emissions are reported from operations within the Sampang PSC, where grid electricity is used for certain processes at the Grati onshore gas plant. Additional Scope 2 emissions are reported from the Company’s corporate offices in Melbourne and Jakarta, as well as from a field site in Indonesia. Scope 2 Emissions Year CUE Emissions (tCO2e) FY25 Previous Year Total Office emissions (Melbourne & Jakarta) 6.5 7.0 Samarinda Warehouse 5.6 5.6 Sampang 260.3 250.8 Onshore Australia* 13.8 12.6 Total Scope 2 Emissions 286.2 276.0 * P rior years updated to include onshore Australia data. FY25 onshore Australia emissions are estimated. NGER reporting will be published by Cue when available later this year. Task Force on Climate–Related Financial Disclosure (TCFD) Statement continued 20 Cue Energy Resources Limited Annual Report 2025
The Company does not currently report on Scope 3 emissions but does estimate and offset business travel emissions. Cue offsets carbon emissions from office operations and air travel by partnering with Greenfleet Australia, a non-profit organisation that plants native trees in legally protected biodiverse forests. These forests help absorb carbon emissions and contribute to long-term environmental restoration. 0.000 0.010 0.020 0.030 0.040 0.050 FY22 FY23 FY24 FY25 CO2e(t)/boe produced Cue Emissions Intensity Offsets and Targets Targets Focus Area Target Status Reporting Continue to report Scope 1 and 2 emissions. Ongoing. Mandatory reporting from Indonesia projects is being implemented Reporting Prepare for implementation of Australian mandatory climate disclosures. Ongoing. Implementation scheduled for July 2027, based on Cue’s size classification. Policy and Legal Review climate change policy and update if necessary. Policy published annually and available on the Company’s website. Commercial Apply an internal carbon price to investment decisions. Applied on an as-needed basis. Emission Reduction Collaborate with JV partners to identify and implement emission reductions or offsets at producing sites. Ongoing. All JV projects are currently assessing opportunities for emissions reductions. Emission Reduction Offset 100% of head office and corporate travel emissions. FY2025 offset achieved via GreenFleet forest restoration. Emission Reduction Support sustainability improvements at office sites. Ongoing. Task Force on Climate–Related Financial Disclosure (TCFD) Statement continued Cue Emissions Intensity 21 Cue Energy Resources Limited Annual Report 2025
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