• Multi-year Gas Supply Agreement signed with Northern Territory Government
• Up to 3.2 PJ (Cue Share) contracted through to 2034 under take-or-pay provisions
• Final Investment Decision taken to drill two new wells in Palm Valley field

Cue Energy Resources Limited has announced that it has executed a binding multi-year Gas Sales Agreement with the Northern Territory Government. To support this agreement, the Palm Valley Joint Venture (in which Cue has a 15% interest) has taken a Final Investment Decision to drill two new wells in the Palm Valley field. These new wells will supply up to 21 PJ of gas (3.2 PJ Cue share) on a firm basis from the second half of 2026 through to the end of 2034. The gas is contracted at a fixed price with CPI escalation and take-or-pay provisions. Preparations for the new wells are well-advanced, with key approvals in place or underway, long lead items ordered, a drilling rig contracted, and civil works substantially complete. Drilling for the first well is scheduled to commence mid-2026, with production from the new wells expected to be brought online progressively over the second half of 2026. This agreement replaces the previously proposed gas supply arrangements with the Northern Territory's Power and Water Corporation, as no agreement was reached on volume and pricing for the Mereenie gas field. The Independent Board Committee continues to unanimously recommend that Cue shareholders reject the takeover offer from Horizon Oil, noting that Horizon does not hold a participating interest in the Palm Valley Joint Venture and will not benefit from the new Gas Sales Agreement.

Cue's new Gas Sales Agreement is expected to materially increase its contracted gas position, revenues, and operational cash flows from its onshore Australia assets through to the end of 2034.

The new Gas Sales Agreement and drilling of two new wells in the Palm Valley field positions Cue to deliver additional gas supply into the Northern Territory market while supporting near-term cash flow growth.