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
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