Cue Energy Resources Limited Notes to the financial statements 30 June 2025 43 Note 11. Non-current assets - production properties Consolidated 30 June 2025 30 June 2024 $'000 $'000 Net accumulated cost incurred on areas of interest Joint operation production assets Sampang 2,164 2,239 Maari 13,009 13,876 Mahato 24,369 15,024 Palm Valley 5,403 5,952 Mereenie 19,089 18,070 Dingo 7,117 7,856 Balance as at 30 June 71,151 63,017 Reconciliations A reconciliation of the written down values at the beginning and end of the current and previous financial year are set out below: Consolidated 30 June 2025 30 June 2024 Production properties $'000 $'000 Balance at 1 July 63,017 62,289 Additions during the year 16,502 7,305 Changes in restoration provision – production (note 12) 735 (550) Amortisation expense (9,013) (6,212) Contract liabilities reversed (368) 161 Changes in foreign currency translation 278 24 Closing balance 30 June 71,151 63,017 Accounting policy for production properties Production properties are carried at the reporting date at cost less accumulated amortisation and accumulated impairment losses. Production properties represent the accumulation of all exploration, evaluation, development and acquisition costs in relation to areas of interest in which production licences have been granted. Amortisation of costs is performed on the basis which best reflects the consumption of future economic benefits. In the Onshore Australia assets, physical assets are amortised on the straight-line basis whilst all other production properties are amortised on the unit-of-production basis, separate calculations being made for each resource. The unit-of-production basis results in an amortisation charge proportional to the depletion of economically recoverable reserves (comprising both proven and probable reserves) and is expensed through the statement of profit or loss and other comprehensive income. Amounts received during the exploration, evaluation, development or construction phases which are in the nature of reimbursement or recoupment of previously incurred costs are offset against such capitalised costs. Accounting policy for impairment The carrying amounts of the Consolidated Entity’s assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit exceeds the recoverable amount. Impairment losses are recognised in profit or loss, unless an asset has previously been revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation with any excess recognised through profit or loss. 55 Cue Energy Resources Limited Annual Report 2025
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