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
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