Mahato PSC Update – Reserves Upgrade And Company Reserves As At 1 January 2022

Posted on 29 March 2022

New Zealand Oil & Gas subsidiary, Cue Energy Resources (ASX:CUE), has undertaken a review of the reserves and recoverable volumes in the Mahato PSC as of 1 January 2022. This is following
the successfully drilling of 8 production wells (PB-1 to PB-8) in 2021 with the field currently producing at approximately 5,500 barrels of oil per day (bopd).

The update release is attached.

Given Cue’s review, New Zealand Oil & Gas provides below a summary of the Company’s combined net 2P Total, net 2C Contingent and net 2U Unrisked Prospective Resources as at 1
January 2022. This shows the impact of the Mahato upgrade, along with production volumes produced since 1 July 2021 and the potentially accessible resources across our assets:

mahato png

We also note the impact of this on our 1P total reserves position, where at 1 July 2021 we held 12.9mmboe, with this upgrade the company’s 1P Total reserves as at 1 Jan 2022 is now

"It is gratifying to be able to share more positive news at Mahato. These results convert opportunity into actuality, at a time of high oil prices” CEO Andrew Jefferies says. “We are excited to continue to build value through the drill-bit. As the graph above shows we have a raft of projects on the go, looking to move the resources on the right to the reserves on the left. I look forward to delivery of the upcoming drilling programme at Palm Valley and Dingo, as well as the other projects, which we will be talking to the market about as we finalise financing options over
the next short while.”

Cue has a 12.5% interest in the Mahato PSC. New Zealand Oil & Gas has a 50.04% interest in Cue.