Cue Energy Resources Limited Directors' report 30 June 2026 14 Litigation The Consolidated Entity is not currently involved in any litigation. However, in the ordinary course of business we may become involved in litigation and disputes, for example with our partners, contractors or employees, over a broad range of matters. Any such litigation or dispute could involve significant economic costs and damage to relationships with partners or other stakeholders. Outcomes of any litigation may have an adverse impact on the Consolidated Entity’s business, market reputation and financial condition and financial performance. Health Safety and Environmental risk Exploration, development, production and transportation of oil and gas involves a variety of risks which may impact the health and safety of personnel, the community and the environment. Natural disasters, operational error and equipment failure, amongst other things, could result in oil and gas leaks or spills or loss of well control which may lead to injury or loss of life, damage to equipment and facilities, legal liability and reputational damage. Losses or liabilities from such events could reduce revenue or increase costs and materially impact the Consolidated Entity’s financial position. The Consolidated Entity works with project operators to ensure processes and procedures are in place to minimise these risks and seeks to maintain appropriate insurance policies to mitigate against the financial effects of any incident. Climate change and the development of alternative energy sources The Consolidated Entity's operating environment may be impacted by climate change and the development of alternative energy sources. Digital and Cyber Security Any information technology system is potentially vulnerable to interruption and/or damage from a number of sources, including but not limited to computer viruses, cyber security attacks and other security breaches, power, systems, internet and data network failures, and natural disasters. The Consolidated Entity is committed to preventing and reducing cyber security risks through outsourcing the IT environment which it utilizes to a reputable service provider. Reliance on key personnel The Consolidated Entity’s success depends to a significant extent upon its key management personnel, as well as other staff and technical personnel including those employed on a contractual basis. The loss of the services of such personnel or the reduced ability to recruit additional personnel could have an adverse effect on the Consolidated Entity's performance. The Consolidated Entity maintains a mix of permanent staff and expert consultants to advance its projects and ensure access to multiple skill sets. The remuneration policy is reviewed regularly to ensure it appropriately reflects current and expected employment conditions and best practices. Geopolitical Risk Geopolitical conflicts can have significant global macro-economic impacts, including increasing instability in global energy prices. Related impacts include, but are not limited to volatility in commodity prices, currency movements, supply-chain and travel disruptions, disruption in banking systems and capital markets, increased costs and expenditures and cyberattacks. The development and conclusion of current conflicts are inherently uncertain and the consequences for the global economy and the Consolidated Entity’s operations are unpredictable. The Board and management team continue to assess the potential impacts on the business, however given the continued uncertainties the future financial impact, if any, cannot be determined. Refer to the Financial and Operations review preceding this Director's Report. Significant changes in the state of affairs During the year, the Consolidated Entity was the subject of an off-market takeover by Horizon Oil Limited. The takeover was completed on 2 July 2026, with Horizon Oil Limited obtaining a controlling 57.03% interest in the Consolidated Entity. The Board was refreshed with five directors resigning, and the appointment of four new directors. Other than as noted elsewhere in the Directors’ report, there were no significant changes in the state of affairs of the Consolidated Entity during the financial year. 27 Cue Energy Resources Limited Annual Report 2026
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