Cue Energy Resources Limited Notes to the financial statements 30 June 2026 Note 11. Non-current assets - production properties (continued) 46 million for Maari and $1.0 million for Sampang in the Consolidated Statement of Profit or loss and Comprehensive income. The recoverable amount was determined by value-in-use method, using the following key assumptions: Pre-tax discount rates: 9% - 14% Oil price using independent external analysts’ consensus Gas price applied at contracted price End of field life being earlier of economic cut-off or expiry of field life Note 12. Non-current liabilities - provisions Consolidated 30 June 2026 30 June 2025 $'000 $'000 Employee benefits 17 6 Restoration provisions 31,108 30,402 31,125 30,408 Movements in restoration provision during the financial year are set out below: Restoration Provisions Consolidated - 30 June 2026 $'000 Carrying amount at the start of the year 30,402 Change in provisions recognised 1,368 Unwinding of provision 613 Impact of foreign currency translation (1,275) Carrying amount at the end of the year 31,108 Consolidated 30 June 2026 30 June 2025 $'000 $'000 Restoration provisions 31,108 30,402 Advances paid for restoration works (6,372) (6,388) Net unfunded restoration provisions 24,736 24,014 In accordance with legislative obligations in some jurisdictions in which the Consolidated Entity operates, contributions are made to special purpose funds established solely for the purpose of financing future restoration works. Amounts contributed to these funds are not available for general use and restricted solely for the purpose of funding future restoration works. As at 30 June 2026, $6.37 million (30 June 2025: $6.39 million) has been contributed to such funds in respect of the Sampang asset in Indonesia. Accounting policy for provisions A provision is recognised in the statement of financial position when the Consolidated Entity has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risk specific to the liability. Restoration provision The expected timing of outflows for restoration liabilities is not within 12 months from the reporting date. 59 Cue Energy Resources Limited Annual Report 2026
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