• Cue Energy and Mereenie/Palm Valley Joint Ventures sign binding LOI with Northern Territory's Power and Water Corporation
• Plans for 4-well drilling program at Mereenie and Palm Valley fields to commence in mid-2026
• Conditional long-term gas supply agreements to be finalized by early 2026

Cue Energy Resources Limited (ASX: CUE) and the Mereenie and Palm Valley Joint Ventures have entered into a binding Letter of Intent (LOI) with the Northern Territory's Power and Water Corporation (PWC) to support the immediate commencement of early works for a four-well drilling program, and to progress conditional gas supply terms into binding Gas Sales Agreements that will provide for firm gas supply through to 2034. To accelerate delivery of gas into the Northern Territory market, the Joint Ventures will immediately commence early works including ordering long-lead items, progressing civil works and selecting a drilling rig. The drilling program will include two wells at the Mereenie field and two wells at the Palm Valley field, targeting a mid-2026 drilling start. The LOI outlines non-binding, conditional terms for long-term gas supply, including uncontracted gas from the Mereenie and Palm Valley fields and new production from the planned drilling program. The parties intend to finalise and execute binding Gas Sales Agreements by early 2026, subject to final internal approvals by each Joint Venture participant and PWC. Included in the LOI is provision for the Joint Ventures to be reimbursed by PWC for costs associated with the drilling program's early works in the event binding GSAs are not executed by 20 February 2026. Cue Energy CEO Matthew Boyall commented that this is an exciting opportunity for Cue with short term production growth and long term contract stability, helping to ensure reliable, locally sourced energy for the Northern Territory through to 2035.

The LOI outlines plans for a 4-well drilling program at the Mereenie and Palm Valley fields, targeting a mid-2026 drilling start, which is expected to result in short-term production growth and long-term gas supply agreements through to 2034.

The signing of this binding LOI with the Northern Territory's Power and Water Corporation supports new development activity and long-term gas supply, helping to ensure reliable, locally sourced energy for the Territory through to 2035.