Ann: GAS SUPPLY AGREEMENT WITH INCITEC PIVOT, page-2

Merry Christmas to all the faithful CUE Energy Shareholders. As CUE continues to consider its position with regard to its "Capital Management program" and how it could provide some return to minority shareholders one thing is clear; any increase in revenue will assist in advancing that program.

In the coming year there will be a step change in profit from the CUE/NZO interests in the Amadeus assets. Firstly revenue will increase on the back of re-contracting GSA's in line with the improved market pricing. Of more interest to CUE/NZO though will be that all pre-sold gas will be fully-delivered by 31 December.

When NZO/CUE bought into Amadeus they took on 50% of CTP's obligation to supply gas which has previously been paid for but not delivered under pre-sale or ‘take-or-pay’ arrangement at a cost of $23m. This pre-sold gas will be fully-delivered by 31 December 23.

CTP have announced that free cash flows from their 50% will be boosted by more than $6m/ year from January 2024 due to the completion of pre-sales. CUE/NZO, who hold the other 50%, should start to show a similar improvement.

CUE have made clear that before they consider any form of capital return they require sufficient capital reserves to fund 2024 activities. These are retirement of their debt to NZO (completed Q1), exploration drilling this year and working capital. With $17m in the bank as at last quarter they are looking well funded for this years activities.