Key Audit Matters Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. This matter was addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter. Restoration provision relating to the Maari field included within non-current provisions Refer to Note 12 to the Financial Report The key audit matter How the matter was addressed in our audit We identified the restoration provision for the Maari field as a key audit matter due to: • the estimation uncertainty relating to the forecast restoration cash flows, which require auditor judgement to evaluate their appropriateness; and • the significant size of the Maari restoration provision relative to the Group’s total restoration provisions. The Group incurs obligations to close, restore and rehabilitate its sites and associated facilities. We focused on the following key inputs utilised by the Group in determining the restoration provision for the Maari field: • useful life of the field and related assets, giving consideration to the economic reserves and production profiles; • the interpretation of legislative and regulatory requirements governing the Group’s obligations; • the cost and timing of future rehabilitation costs; and • discount, forecast inflation and fx rates applied by the Group to determine the net present value of forecast restoration cash flows. Our procedures included: • assessed the consistency of timing between planned restoration activities and the Group’s reserves estimates and expected production profile; • evaluated the competency of the Group’s competent person responsible for the estimation of economic reserves in accordance with industry standards; • used our knowledge of the Group, our industry experience and understanding of the applicable regulatory requirements to challenge whether the estimated restoration costs and their associated timing are reasonable; • evaluated discount, forecast inflation and fx rates applied by the Group to determine the net present value of the restoration provision against publicly available data, including risk free rates; • assessed the integrity of the provision calculation, including the accuracy of the underlying calculation formulas; • assessed the appropriateness of the Group’s disclosures in the financial report, using our understanding obtained from our testing and against accounting standard requirements. 60 72 Cue Energy Resources Limited Annual Report 2025
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