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
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