CUE ENERGY RESOURCES LIMITED ABN 45 066 383 971 Annual Report 2026
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 Statement 14 Safety, Our Communities and the Environment 16 Task Force on Climate–Related Financial Disclosure (TCFD) Statement 23 Directors’ Report 41 Auditor’s Independence Declaration 42 Consolidated Statement of Profit or Loss and Other Comprehensive Income 43 Consolidated Statement of Financial Position 44 Consolidated Statement of Changes in Equity 45 Consolidated Statement of Cash Flows 46 Notes to the Financial Statements 72 Consolidated Entity Disclosure Statement 72 Directors’ Declaration 74 Independent Auditor’s Report 79 Shareholder Information 82 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 $28.5m Net Cash $15.7m Net Profit After Tax $4.4m Highlights Revenue $50.3m Indonesia: $27.8m Australia: $13.2m New Zealand: $9.3m Final Dividend 0.25cps Total dividends declared 0.5c/share EBITDAX is earnings adjusted to exclude business development costs, exploration and evaluation expenses, share based payments and one-off expenses. It is used as a measure of financial performance as it is a commonly used indicator of performance of the Consolidated Entity's peers and therefore facilitates relative comparison of performance. EBITDAX information has not been audited, however it has been extracted from the audited financial statements. All numbers presented are in Australian dollars, unless otherwise stated. Continuing to Deliver Strong Operational Performance, Investment Discipline and Cashflow Generation 1 Cue Energy Resources Limited Annual Report 2026
Dear Shareholders, FY26 was another successful year for Cue, generating $20 million in net operating cash flow and $28.5 million in underlying EBITDAX from our diversified oil and gas portfolio across Australia, Indonesia and New Zealand. This strong cash generation supported continued investment in our producing assets while allowing Cue to maintain its commitment to shareholder returns. The Board declared a final dividend of 0.25 cents per share, taking total FY26 dividends to 0.50 cents per share, or $3.5 million. Since the beginning of 2024, Cue has returned $35 million to shareholders. The Board continues to manage dividends in line with Cue’s existing policy, balancing sustainable shareholder returns with the Company’s financial position, cash flow requirements and the funding required to pursue organic growth opportunities. FY26 also marked an important change in Cue’s ownership and governance, with Horizon Oil acquiring a 57.03% interest in the Company. I was pleased to join the Board alongside Richard Beament, Gavin Douglas and Kyle Keen. Together with Peter Hood, Ric Malcolm and Greg Bishop, the refreshed Board brings extensive expertise across exploration, development, production and capital management in the upstream oil and gas sector. Cue enters FY27 with a strong production base and an active exploration, appraisal and development program across its core assets. At the Mahato PSC in Indonesia, development drilling continued in the PB field, with PB-41 and PB-42 wells recently completed and PB-42 achieving 520 barrels of oil per day production. The Operator is also progressing the Phase 3 development plan, OPL3, targeting further production from the Bekasap and Telisa reservoirs. The planned program includes further development drilling, Telisa reservoir stimulation and longer-term water injection activities. The GA-1 exploration well is also expected to be drilled in the coming months. It represents an important exploration opportunity within the Mahato PSC and, if successful, could provide another potential area for future development by the Joint Venture. Onshore Australia, the Palm Valley two-well appraisal program is progressing. If successful, gas production from PV14 and PV15 will support Cue’s long-term gas sales agreement with the Northern Territory Government, which provides contracted gas sales through to the end of 2034. These activities reflect Cue’s strategy of maximising value from its existing asset base, investing in highquality development and exploration opportunities and maintaining sustainable returns for shareholders. Horizon’s investment in Cue also provides access to additional technical capability and financial strength as we assess opportunities to grow the business in areas where we have established experience. I would like to thank the Cue team for its continued contribution during the year, together with our joint venture partners and shareholders for their ongoing support. With a strong balance sheet, established production base and a clear program of near-term investment, Cue is well positioned to build on its existing foundations and pursue disciplined growth in FY27 and beyond. Bruce Clement Chairman Chairman’s Overview I am pleased to present my first Cue Energy Resources Limited Annual Report as Chair following a year of strong operational performance, disciplined investment and continued shareholder returns. 2 Cue Energy Resources Limited Annual Report 2026
3 Cue Energy Resources Limited Annual Report 2026
Cue delivered another strong operational and financial performance during FY2026 and continued to provide sustainable returns to shareholders, supported by reliable production from its diversified portfolio across Australia, Indonesia and New Zealand. The Company reported consistent strong revenue of $50.3 million (FY2025: $54.8 million), impacted by Maari lifting timing and lower Sampang production. Cue’s net production for the year was 560 Mboe with $19.8 million net cash generated from operating activities. The Company maintained a strong balance sheet, ending the financial year with cash of $15.7 million and no debt. During the year, Cue announced withdrawal from the Sampang PSC at license expiry in December 2027, resulting in $4.2 million write-off of capitalised costs associated with the Paus Biru project. Further, Cue recognised a non-cash impairment of $3.4 million in Maari and $1.0 million in Sampang as a result of revision to reserve estimates. These one-off items, in addition to takeover defence costs incurred, have been excluded from the calculation of EBITDAX of $28.5 million, and the underlying profit before tax of $17.9 million. The Company’s diversified production portfolio continued to generate strong cash flow throughout the year, supporting investment in high-return development opportunities while continuing sustainable returns to shareholders. Consistent with Cue’s dividend policy, the Company declared an interim dividend of 0.25 cents per share and a final dividend of 0.25 cents per share, totalling 0.50 cents per share of dividends declared for the FY2026 year. FY2026 was characterised by disciplined capital allocation, with investment directed towards five development wells in the Mahato PSC and the two well appraisal drilling program at Palm Valley. Together with the recently signed long-term Gas Sales Agreement with the Northern Territory Government, the investment in Palm Valley wells aims to support increased contracted gas supply through to 2034, support future production growth and seeks to further strengthen Cue’s asset portfolio against oil price volatility. Financial and Operations Review Cue’s strong financial discipline and resilient operating performance is supported by a diversified production portfolio, generating $50.3 million in revenue. The Company remains well positioned to fund growth opportunities while delivering shareholder returns. 1 Investor Presentation | March 2025 Melbourne Office Jakarta Office Mereenie/Palm Valley/Dingo Interest 7.5 – 15% Onshore gas and oil production Mahato PSC Interest 11.25% Onshore oil production Sampang PSC Interest 15% Offshore gas production Maari Interest 5% Offshore oil production 4 Cue Energy Resources Limited Annual Report 2026
0 Opening Cash 1 July 2025 Receipts from customers + interest Payments to suppliers Taxes, Royalties and Finance Net Cash from Operating activities Net Cash used in Investing activities Dividends FX Closing Cash 30 June 2026 FY 2026 Cashflow $ million 20 50 25 6 9 5 11 16 FY 2026 Cashflow $ million 216 60 198 86 230 98 185 88 0 100 200 300 400 500 600 700 FY2025 FY2026 Cue Net Production thousand barrels of oil equivalent (mboe) Onshore Australia Sampang Mahato Maari Cue Net Production thousand barrels of oil equivalent (Mboe) Financial and Operations Review continued 5 Cue Energy Resources Limited Annual Report 2026
Financial and Operations Review continued 6 Cue Energy Resources Limited Annual Report 2026
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 Company’s onshore Australian assets continued to provide reliable production to the Northern Territory throughout FY2026, with production of 216 Mboe. Commercial activities continued during the year with the Mereenie JV announcing a Gas Supply Agreement (GSA) with McArthur River Mining Pty Ltd (MRM) for 2026 and 2027 and the Palm Valley JV announcing a long-term GSA with the Northern Territory Government (NTG GSA). The NTG GSA is for firm gas supply of up to 3.2 PJ (Cue Share) from 1H FY2027 through to the end of 2034, with a fixed price with CPI escalation and take-or-pay provisions. The GSA was supported by the JV agreement to drill two new Palm Valley wells. In July 2026, drilling commenced on PV14, the first of two new wells in the Palm Valley field. The overall program is anticipated to take approximately four and a half months to complete with first gas sales from PV14 targeted for October 2026. The appraisal program is designed to evaluate and develop additional gas resources within the Palm Valley field and support ongoing gas supply to the Northern Territory market. If successful, production from the new wells will support gas deliveries under the recently executed long-term Gas Sales Agreement with the Northern Territory Government, strengthening the long-term revenue profile of Cue’s Australian gas business. Oil sales from Mereenie were constrained by revised oil specification requirements which have led to reduced offtake. Oil sales have been temporarily suspended since mid-June and the JV continues to seek alternative commercial arrangements for the sale of Mereenie’s produced oil. Indonesia MAHATO PSC CUE INTERESTS Cue 11.25% Operator Texcal Energy Mahato Inc Financial and Operations Review continued The Mahato PSC continued to generate strong cashflow while development activities continued across the field. Oil production from the PB field for the year was 198 Mboe, 5% higher than FY2025. Five new oil development wells were drilled and brought into production over the year as part of the previously approved OPL2 development program and other approved infill wells. A total of 40 wells had been drilled in the field by the year end. Post year end, the PB-41 and PB-42 wells have been completed. During 3Q FY2026, production from the PB field was shut in as part of regional precautionary measures required by Indonesian authorities following a pipeline leak and fire on a major gas pipeline in Central Sumatra. Field production was fully restored by the end of the same quarter. The next stage in the development of the PB field is the Phase 3 development plan (OPL 3), targeting additional production from both the existing Bekasap reservoir and the new Telisa reservoir. Government approval is expected during 1H FY2027 , with operations anticipated to commence shortly thereafter. High impact exploration in the PSC will continue during FY2027, with the GA-1 exploration well moving to final planning and approval stages, and expected to be drilled in 2Q FY2027. 7 Cue Energy Resources Limited Annual Report 2026
New Zealand PMP 38160 (Maari/Manaia) CUE INTERESTS Cue 5% Operator OMV Production from Maari and Manaia fields net to Cue was 86 Mboe, with full field production reduced during the year due to workovers to MN1, MR3 and MR4 wells. The field achieved its highest monthly average production in five years, with average daily production of over 5,600 bopd recorded in August 2025. A significant milestone was achieved with the New Zealand Government approving a 10-year extension of Petroleum Mining Permit PMP38160 to December 2037. The permit extension enables the Joint Venture to continue safe, long-term production while assessing further opportunities for resource optimisation and field enhancement. The New Zealand Government continues its assessment of the Maari Joint Venture’s financial assurance arrangements for decommissioning, with ongoing engagement between the Joint Venture and the regulator. Indonesia SAMPANG PSC CUE INTERESTS Cue 15% Operator Medco Energi Production from the mature Oyong and Wortel gas fields continued to decline during the year with lower gas production as the fields progressed through the later stages of their production lives. The Operator continues to review available options to optimise output from existing wells. Installation of compression at the Grati gas plant to support production and recovery was significantly delayed during the year, impacting gas production levels. Compression has now been installed and is operational. During the year, Cue advised the joint venture partners in the Sampang PSC that it would not participate in the Paus Biru development and does not intend to remain in the Sampang PSC beyond the current permit expiry in December 2027. Financial and Operations Review continued 8 Cue Energy Resources Limited Annual Report 2026
Reserves and Resources Statement Summary Cue’s total 2P reserves are 4.5 million barrels of oil equivalent (MMboe). The movement from 5.5 MMboe at 30 June 2025 reflects 0.6 MMboe of production during FY26 and net downward revisions of 0.4 MMboe (~9% of prior year 2P reserves less FY26 production) following updated technical and commercial assessments across the portfolio. Revisions primarily relate to the following: – Mahato: 2P reserves increased by 0.2 MMboe as a result of additional infill drilling opportunities identified within the Bekasap Formation of the PB field. – Sampang: 2P reserves were revised downwards by 0.2 MMboe, primarily due to the deferment of the Grati booster compressor project into FY2027 and Cue’s previously announced intention to withdraw from the Sampang PSC upon licence expiry in December 2027. – Maari: 2P reserves were revised downwards by 0.2 MMboe to reflect the impact of unscheduled downtime and updated economic assumptions, with current estimates indicating cessation of economic production in 2030 based on forecast costs and commodity prices. – Mereenie: 2P reserves were revised downwards by 0.4 MMboe following a performance-based assessment of reservoir behaviour and the current evaluation of future Pacoota Formation infill drilling opportunities 2C contingent resource at Paus Biru and Jeruk (2.4 MMboe) have been de-booked following Cue’s intention to withdraw from the Sampang PSC at licence expiry in December 2027, as previously announced. Prospective gas resources have been identified in a stacked reservoir in Mereenie Footwall with an unrisked 2U volume of 0.7 MMboe. Reserves and Contingent Resources by MMboe (Cue net as at 30 June 2026) 2026 2025 % Change* 1P - Proved Reserves MMboe 2.6 4.2 (28%) 2P - Proved and Probable Reserves MMboe 4.5 5.5 (9%) 2C - Contingent Resources MMboe 3.9 5.6 (30%) 2U - Prospective Resources (unrisked) MMboe 0.7 – Reserves and Contingent Resources by Product (Cue net as at 30 June 2026) Gas PJ Crude and Condensate MMbbl Total MMboe 1P - Proved Reserves 11.3 0.7 2.6 2P - Proved and Probable Reserves 18.1 1.4 4.5 2C - Contingent Resources 14.2 1.4 3.9 2U - Prospective Resources (unrisked) 4.0 – 0.7 * Changes in FY26 divided by FYE25 Reserves less FYE26 production * All volumes quoted in text and tables are Cue net. Refer also Notes 6 and 11. Totals may vary due to rounding. 9 Cue Energy Resources Limited Annual Report 2026
Proved and Proved + Probable Reserves 1P - Proved Reserves (Cue net) All products MMboe Gas PJ Crude and Condensate MMbbl Developed Undeveloped Total Indonesia Mahato PSC: PB; Sampang PSC: Oyong, Wortel 0.2 0.4 0.5 0.0 0.5 New Zealand PMP 38160: Maari, Manaia – 0.2 0.2 – 0.2 Australia OL4/5: Mereenie; OL3: Palm Valley; L7: Dingo 11.1 0.1 1.8 0.1 2.0 Closing Balance 30 June 2026 (arithmetic sum) 11.3 0.7 2.4 0.2 2.6 2P - Proved and Probable Reserves (Cue net) All products MMboe Gas PJ Crude and Condensate MMbbl Developed Undeveloped Total Indonesia Mahato PSC: PB; Sampang PSC: Oyong, Wortel 0.5 1.0 1.1 0.0 1.1 New Zealand PMP 38160: Maari, Manaia – 0.2 0.2 – 0.2 Australia OL4/5: Mereenie; OL3: Palm Valley; L7: Dingo 17.5 0.1 2.5 0.6 3.1 Closing Balance 30 June 2026 (arithmetic sum) 18.1 1.4 3.9 0.6 4.5 All volumes quoted in text and tables are Cue net. Refer also Notes 6 and 11. Totals may vary due to rounding. Reserves and Resources Statement continued 10 Cue Energy Resources Limited Annual Report 2026
Reconciliation of Proved and Proved + Probable Reserves Reserves Reconciliation 30 June 2025 Production Revisions Transfers, Extensions & Discoveries Acquisitions, Divestments & Relinquishments 30 June 2026 1P - Proved Reserves Reconciliation (Cue net) Crude and Condensate (MMbbl) 1.3 -0.3 -0.3 – – 0.7 Sales Gas (PJ) 17.7 -1.7 -4.7 – – 11.3 Total 1P MMboe 4.2 -0.6 -1.0 – – 2.6 2P - Proved and Probable Reserves Reconciliation (Cue net) Crude and Condensate (MMbbl) 1.7 -0.3 -0.1 – – 1.4 Sales Gas (PJ) 23.1 -1.7 -3.3 – – 18.1 Total 2P MMboe 5.5 -0.6 -0.4 – – 4.5 All volumes quoted in text and tables are Cue net. Refer also notes 6 and 11. Totals may vary due to rounding. Contingent Resources 2C - Contingent Resources (Cue net) 2C Gas PJ Crude and Condensate MMbbl Total Equivalent MMboe Indonesia Mahato PSC: PB; Sampang PSC: Oyong, Wortel – 0.8 0.8 New Zealand PMP 38160: Maari, Manaia – 0.6 0.6 Australia OL4/5: Mereenie; OL3: Palm Valley; L7: Dingo 14.2 0.0 2.5 Closing Balance 30 June 2026 (arithmetic sum) 14.2 1.4 3.9 11 Cue Energy Resources Limited Annual Report 2026
2C - Contingent Resources Reconciliation (Cue net) 30 June 2025 Revisions Transfers, Extensions & Discoveries Acquisitions, Divestments & Relinquishments 30 June 2026 2C Contingent Resources Crude and Condensate (MMbbl) 2.1 0.5 0.1 -1.2 1.4 Sales Gas (PJ) 21.3 0.0 0.0 -7.0 14.2 Total MMboe 5.6 0.6 0.1 -2.4 3.9 All volumes quoted in text and tables are Cue net. Refer also notes 6 and 11. Totals may vary due to rounding. De-booking of Paus Biru and Jeruk corresponds to Cue’s previously announced intention to withdraw from the Sampang PSC at licence expiry date of Dec-2027. This is shown as a relinquishment. Revisions of 0.5 MMboe mostly relate to infill drilling opportunities at Maari that are considered Contingent Resource sub-class, development unclarified. Prospective Resources 2U - Prospective Resources (unrisked Cue Net) 2U Gas PJ Crude and Condensate MMbbl Total Equivalent MMboe Indonesia Mahato PSC: PB; Sampang PSC: Oyong, Wortel – – – New Zealand PMP 38160: Maari, Manaia – – – Australia OL4/5: Mereenie; OL3: Palm Valley; L7: Dingo 4.0 – 0.7 Closing Balance 30 June 2026 (arithmetic sum) 4.0 0.0 0.7 2U - Prospective Resources Reconciliation (unrisked) 30 June 2025 Revisions Transfers, Discoveries & Extensions Acquisitions, Divestments 30 June 2026 2U Prospective Resources Crude and Condensate (MMboe) – – – – – Sales Gas (PJ) – 4.0 – – 4.0 Total MMboe – 0.7 – – 0.7 Cautionary statement: Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project[s] related to undiscovered accumulations. The estimates have both an associated risk of discovery and risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of hydrocarbons. The 2U Prospective Resources in the above table are unrisked volumes. All volumes quoted in text and tables are Cue net. Refer also notes 6 and 11. Totals may vary due to rounding. Prospective resources have been identified in a stacked reservoir Mereenie Footwall to the southwest of the main field. The opportunity carries an unrisked probabilistic 2U net resource of 4.0 PJ, with a geological chance of success (Pg) of 31%. In the event of geological success, the chance of development (Pd) is assessed at ~100%, reflecting the low-cost nature of appraisal, development and tie in activities, all possible from existing Mereenie field infrastructure. Cue expects to work with the respective Joint Venture to further evaluate this opportunity. Reserves and Resources Statement continued 12 Cue Energy Resources Limited Annual Report 2026
Permits, Licences and Interests Held Net Working Interest Permit or Licence Operator Country Entity 30 June 2026 30 June 2025 Mahato PSC: PB Texcal Indonesia Cue Mahato Pty Ltd 11.25% 11.25% Sampang PSC: Oyong, Wortel Medco Cue Sampang Pty Ltd 15.00% 15.00% PMP 38160 – Maari, Manaia OMV New Zealand Cue Taranaki Pty Ltd 5.00% 5.00% OL4 and OL5 Mereenie Australia Cue Mereenie Pty Ltd 7.50% 7.50% OL3 – Palm Valley Central Petroleum Cue Palm Valley Pty Ltd 15.00% 15.00% L7 – Dingo Cue Dingo Pty Ltd 15.00% 15.00% Notes 1 All estimates are prepared in accordance with the Society of Petroleum Engineers (SPE) Petroleum Resources Management System (PRMS) revised 2018. 2 Relevant terms used in this statement, capitalised or otherwise, have the same meaning given to those terms in the SPE PRMS. 3 Reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. 4 Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable owing to one or more contingencies. 5 Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. See also above Cautionary Statement. 6 Liquids are equal to the total of oil, condensate and natural gas liquids where 1 barrel of condensate or natural gas liquids equals 1 barrel of oil. Reported gas reserves and resource closing balances have been converted to oil equivalent using 5.816 PJ equals one million barrels of oil equivalent (MMboe). Prior reporting used 1TJ of gas equals 163.4 boe (6.12 PJ/ MMboe). Abbreviations and units used throughout the tables and text are defined as follows: PJ (petajoule), TJ (terajoule), bbl (barrels), MMbbl (million barrels), boe (barrels of oil equivalent), MMboe (million barrels of oil equivalent). 7 Raw Gas is natural gas as it is produced from the reservoir which may include varying amounts of heavier hydrocarbons which liquefy at atmospheric conditions, water vapor and other non-hydrocarbon gases such as hydrogen sulphide, carbon dioxide, nitrogen or helium. 8 Sales Gas represents volumes that are likely to be present a saleable product. Sales Gas are reported assuming average values for fuel, flare and shrinkage considering the variable reservoir fluid properties of each constituent field on an energy basis the customary unit is PJ. PJ means petajoules and is equal to 1015 joules. 9 For Reserves and Contingent Resources, depending on the asset, either deterministic estimates or probabilistic estimates have been used. For Prospective Resources, all estimates are probabilistic estimates. 10 Reported estimates of petroleum Reserves, Contingent Resources and Prospective Resources have been aggregated by arithmetic summation by category. 1P Reserves reported beyond the field, property or project level aggregated by arithmetic summation may be a very conservative estimate due to the portfolio effects of arithmetic summation. 11 Estimates are reported according to Cue’s net economic interest, this being Cue’s ’net working interest adjusted for entitlements (Economic Interest adjustment) under production-sharing contracts and risked-service contracts; and are reported net of royalties and lease fuel up to the reference point. Reference points for Cue’s petroleum Reserves and Contingent Resources and production are defined points where normal operations cease, and petroleum products are measured under defined conditions prior to custody transfer. 12 Cue’s net economic interest is 7.5% equity in the Mereenie field; 15% in each of the Dingo and Palm Valley fields; and 5.0% in the Maari asset. 13 Cue holds an equity position of 11.25% and 15% in the Mahato and Sampang Production Sharing Contracts (PSC) respectively. The PSC terms result in Cue’s net economic interests in these PSCs ranging from approximately 7.8% to 13.9% respectively. 14 Contingent resources booked for the Mahato PSC are related to the Telisa development that is not yet sanctioned, with economics and royalties not yet known, therefore a net effective equity of 11.25% is estimated for this booking. 15 Horizon Oil Limited (Horizon Oil) provides a report for Cue on the entity’s Reserves and Resources as at 30 June 2026. At the time of writing Horizon has an equity shareholding in Cue of 57.03%. 16 Horizon Oil employs a Reserves Management System to ensure the veracity of data used in the estimation process. This process includes review by senior staff where data is endorsed for inclusion in the estimating process. Estimates are reviewed annually, at a minimum, with interim reviews as required, to respond to any material changes. Horizon Oil undertakes semi-regular external reviews to complement its own internal process. 17 T he estimates of petroleum Reserves and Resources contained in this statement are based on, and fairly represent, information and supporting documentation prepared by staff and independent consultants under the supervision of Mr Gavin Douglas, Chief Operating Officer of Horizon Oil Limited. Mr Douglas is a full-time employee of Horizon Oil Limited and is a member of the American Association of Petroleum Geologists and the Society of Petroleum Engineers. Mr Douglas’ qualifications include a Masters of Reservoir Evaluation and Management from the Heriot Watt University UK, and more than 30 years of relevant experience. Mr Douglas consents to the use of the petroleum Reserves and Resources estimates in the form and context in which they appear in this statement. 18 Some totals in the tables may not add due to rounding. 13 Cue Energy Resources Limited Annual Report 2026
SAFETY At Cue, we remain committed to upholding high standards in health, safety, and environmental stewardship, recognising these as fundamental to our long-term 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. During FY2026, there was one Lost Time Injury (LTI) and no significant spills reported at our joint venture operations. We continued to actively support and promote high standards of health and safety in our joint ventures. As part of our governance practices, we review incident and safety reports and provide constructive feedback to help ensure safe, efficient and responsible operations across our asset base. During the year major shutdowns at the Mereenie and Maari fields were executed safely and without recordable injuries. 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. Indonesia Safety, Our Communities and the Environment Cue directly contributed equipment and furniture to a local school, Durrotul Ilmi Al Islamy, in Riau Province, where the Mahato PSC is located. Texcal Energy, our Mahato PSC joint venture operator, led a range of community initiatives throughout the year in Riau province, including the planting of 1,300 shade tree seedlings. 14 Cue Energy Resources Limited Annual Report 2026
Onshore 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. Land access agreements remain in place through the Central Land Council (CLC), with whom Central maintains regular engagement on behalf of the joint venture. During the year, Traditional Owners worked alongside contractors on the Mereenie field’s weed control program and received practical training in weed identification, herbicide application and safe chemical handling. Medco Energi, our Sampang PSC joint venture operator, remained deeply engaged with communities surrounding our operations, including clean water drilling at Sejati Village and concrete pavement at Mandangin Village. New Zealand The Maari joint venture’s previously sponsored community projects, including the Waverley pump track and the Patea jetty and viewing platform, continued to provide benefits to local communities during FY2026. The joint venture remains engaged with local councils to identify potential opportunities for future community support. ENVIRONMENT Cue remains focused on working closely with our operators and joint venture partners to reduce the environmental impact of our operations. Across all jurisdictions, we continue to support initiatives that reduce emissions and improve environmental outcomes including energy optimisation, habitat restoration and emissions mitigation. A significant environmental project was the successful commissioning of the Vapour Recovery Unit at Maari, recovering flared low-pressure hydrocarbon vapours for beneficial use and reducing fuel consumption. Cue voluntarily reports on our approach to climate change and our emissions aligned with the Task Force on ClimateRelated Financial Disclosure ( TCFD) guidelines in the following section of this report. 15 Cue Energy Resources Limited Annual Report 2026
This section outlines Cue Energy Resources’ approach to climate disclosure and climate risk management. It is structured to align with the recommendations of the Task Force on Climate-Related Financial Disclosure (TCFD). Statement from the Chief Executive At Cue, we recognise that climate change and changes to global energy systems have the potential to reshape the markets in which we operate. Our focus is to position the business so that our assets continue to support regional energy security, while we consider climate risk, emissions performance, and emerging regulatory requirements in the way we make investment and operating decisions. Onshore Australia, Mereenie, Palm Valley and Dingo supply a material proportion of gas used in power generation in the Northern Territory, and Maari oil is predominantly sold into east coast refineries supporting Australia’s liquid fuel security. In Indonesia, Sampang gas provides fuel for electricity generation and the economic advancement of East Java, and Mahato supports Indonesia’s domestic energy security objectives. We monitor and report emissions from our projects where Cue is a non-operating joint venture partner and work with operators to support practical emissions reductions through improved processes, upgraded equipment, and optimisation of existing infrastructure. During the year, initiatives across our assets continued to focus on improved emissions performance and climate-related reporting. At Maari, a Vapour Recovery Unit was commissioned to recover previously flared hydrocarbon vapours for beneficial use. At Mahato, the PB field is progressing connection to the regional power grid and assessing solar options to reduce emissions from onsite generators. This report outlines how we assess and manage climate-related risks and opportunities across the business using the TCFD recommendations as a basis for providing stakeholders with a transparent view of our current approach. As Australia’s mandatory climate-related financial disclosure regime is phased in, we will continue building our reporting capability in preparation for the expected commencement of mandatory reporting beginning on or after 1 July 2027. Matthew Boyall Chief Executive Officer Task Force on Climate–Related Financial Disclosure (TCFD) Statement 16 Cue Energy Resources Limited Annual Report 2026
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, and reviewed through Cue’s established risk management cycle and reported where material changes arise. BOARD OF DIRECTORS • Board Charter • Cue Risk Management System • ASX Listing Rules and Corporate Governance Code (E.g. Principle 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 risks register • Allocates risk to risk owners • Reports risk register to ORSC STAFF HEALTH, SAFETY AND ENVIRONMENT PROCESS • Identifies and reviews site HSE incidents and incorporates these into the risk register 17 Cue Energy Resources Limited Annual Report 2026
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 recommends 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 risks 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 Cue produces oil and natural gas for markets in Asia and Australia, with a portfolio that is risk assessed through both near-term demand fundamentals and longer-term climate transition risks. The investment rationale for Cue’s portfolio is based on the continuing role of gas and oil in supporting reliable regional energy systems, combined with disciplined management of climate-related risks. Cue recognises that transition risk may affect demand, costs, regulation, and access to capital, and therefore incorporates carbon pricing, emissions performance, regulatory change, and joint venture influence into risk assessment and investment decision-making. However, climate-related financial, market, and socio-political risks also present opportunities, particularly in the increasing use of natural gas as a complement to renewable energy and as a lower-emission alternative to coal. Product demand Cue draws on various external and internal analyses to assess the ongoing demand for its products. Time Horizon Demand Short Term – The Australian Energy Market Operator’s (AEMO) 2026 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. In its June 2026 interim report, the ACCC forecasts that more investment will be required to meet long-term gas demand in the east coast. – The Indonesian government continues to support domestic energy security with production targets of one million barrels of oil per day and 12 Bcf/d of gas by 2030. Medium to Long Term – 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. – Southeast Asia oil demand is forecast by the IEA to grow from 5.1 mmbopd in 2024 to 6.1 mmbopd in 2035 under the stated policies scenario and remain stable to 2050. Gas demand in Southeast Asia under the stated policies scenario is forecast to increase by 33% between 2024 and 2035, continuing to increase a further 10% by 2050. Task Force on Climate–Related Financial Disclosure (TCFD) Statement continued 18 Cue Energy Resources Limited Annual Report 2026
Regulations Cue operates across multiple jurisdictions, each with its own regulatory framework, which helps mitigate the risks of regulatory changes on its business. 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 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. 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 based on Cue’s current assessment of the applicable thresholds, mandatory climate-related financial reporting is expected to apply for its annual reporting period beginning on or after 1 July 2027. 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 has implemented a sector-based carbon pricing regulation, although 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. Climate-related risks and opportunities Risk Type Description Time Horizon Potential Financial Impacts PHYSICAL RISKS Acute Climate change increases the severity, duration and frequency of extreme weather events offshore Taranaki (Maari). The Mahato and Amadeus fields, located onshore in Indonesia and Central Australia can experience periods of extreme heat, drought, flooding and fire. S, M, L Declining revenue due to disruptions to operations and supply chains, reduced labour productivity, increased costs to repair or replace equipment damaged by severe weather events, unable to meet operational budgets and KPIs leading to a decline in expected shareholder returns. PHYSICAL RISKS Chronic Increasing average temperatures and long term sea level rise. L Reduced productivity and increased costs to manage operations in higher temperatures. Increased capital for facility adaptation measures to maintain performance and reliability. TRANSITION RISKS Policy & Legal Changes in legislation and regulation relating to climate and sustainability matters, including emissions reporting, financial disclosure requirements, carbon pricing and sector specific environmental obligations. S, M, L Increased compliance costs, insurance premiums, taxes, carbon pricing, changes in demand and pricing, and potential litigation arising from non-compliance. Onerous operating conditions for late-life assets, reducing revenue and profitability, leading to early retirement of existing assets. TRANSITION RISKS Policy and Legal (decommissioning) Changes in environmental and decommissioning regulations associated with climate, environmental and energy transition policies. M, L Increased financial assurance requirements, earlier retirement of assets and higher rehabilitation or decommissioning costs. TRANSITION RISK Technology Continued development and adoption of alternative energy technologies could reduce demand for petroleum products. L The development of alternative energy systems could ultimately reduce demand for petroleum products (greater impact on liquid fuels than gas is anticipated) that are produced by Cue’s assets, leading to reduced revenue. Task Force on Climate–Related Financial Disclosure (TCFD) Statement continued 19 Cue Energy Resources Limited Annual Report 2026
Risk Type Description Time Horizon Potential Financial Impacts TRANSITION RISKS Reputational Reputational damage arising from association with oil and gas assets and partners with oil and gas companies. M, L Targeted operator or shareholder activism, assets divestment, and reduction of shareholder value. Loss of social license could lead to project delays or stoppages, losing value-adding opportunities. TRANSITION RISKS Capital and financing Increased climate-related requirements from institutional investors, lenders and insurers. M, L Less access to financing, with more onerous requirements to qualify, leading to an increase in cost and reduced flexibility in funding future growth opportunities. TRANSITION RISKS Market Changes in commodity demand, customer preferences, market access, investor sentiment and carbon-related costs arising from the energy transition. L Reduced demand for petroleum products, lower commodity prices, shortened asset lives, reduced reserves value and impairment of existing assets. Opportunity Description Time Horizon Potential Financial Impacts Resource Efficiency and Energy Use Plant modifications and capital projects to reduce energy consumption and asset field emissions. S, M, L Improved operating efficiency and reduced use of fuel and Scope 1 emissions, resulting in lower operating costs for the business. Value Add Products Develop new revenue opportunities and optimise value from existing assets. M, L Increased revenues through access to new and emerging markets. For example, additional revenue could be generated through the extraction and sale of helium associated with Mereenie gas production. Energy security and reliable oil and gas supply Demand for reliable and secure localised energy supply may support investment in existing oil and gas assets and associated infrastructure. M, L Increased revenues through sustained demand for gas, improved economics of development and production enhancement projects, extension of production license / asset life, and increased reserves and resources conversion. Short-term: 0-5 years, Medium-term: 5-10 years, Long-term: 10+ years Alternative Energy Scenarios The Company monitors various energy outlooks and industry forecasts that include scenario-based projections for alternative energy sources. 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 and accessible, 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 may in the future explore commercially and scientifically credible decarbonisation pathways. Task Force on Climate–Related Financial Disclosure (TCFD) Statement continued 20 Cue Energy Resources Limited Annual Report 2026
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 mitigating actions. 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 complement to renewable energy and as a lower-emission alternative to coal. Calculating Climate risk The economic impact of climate risk includes quantification by Cue utilising carbon-pricing mechanisms. 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. Metrics and Targets Emissions As Cue is a non-operating participant in all producing assets, emissions data is primarily obtained from asset operators. Reported emissions are based on the most recent information available from asset operators at the time of reporting and remain subject to revision should operators subsequently update underlying emissions data or methodologies. – Maari, New Zealand: Scope 1 emissions are based on operator-supplied data calculated in accordance with the New Zealand Emissions Trading Scheme (ETS) methodology. – Sampang and Mahato: Scope 1 emissions are based on operator-supplied data compliant with SKKMigas (Indonesian upstream regulator) reporting requirements. – Onshore Australia: Scope 1 emissions are estimated using operator-reported activity data and calculated in accordance with the NGER methodology. Scope 2 emissions are reported from the Sampang PSC and Onshore Australia, where grid electricity is used for gas plant processes. Additional Scope 2 emissions are reported from the Company’s corporate offices in Melbourne and Jakarta and Cue’s Samarinda field site. Reported Scope 1 and Scope 2 emissions represent Cue’s equity share of emissions from its producing assets, together with emissions from Cue-operated corporate locations. Task Force on Climate–Related Financial Disclosure (TCFD) Statement continued 21 Cue Energy Resources Limited Annual Report 2026
RkJQdWJsaXNoZXIy MjE2NDg3