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
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