Australia MEREENIE, PALM VALLEY AND DINGO FIELDS The Mereenie, Palm Valley, and Dingo fields generated $11.3 million in revenue for Cue, consistent with the previous year. Production and sale interruptions from the intermittent closure of the Northern Gas Pipeline (NGP) was offset by increased Dingo revenue due to increased production and recognition of revenue from the release of previously deferred take-or-pay balances. The NGP was temporarily shut during Q2 FY2024 and from March 2024 onwards due to low gas volumes from other Northern Territory gas fields. During these periods, the Mereenie and Palm Valley joint ventures were unable to deliver gas to customers in the Eastern States and sought as-available gas sales into the Northern Territory. In April 2024, the Mereenie Joint Venture entered in to an as-available gas supply agreement with Power & Water Corporation (PWC) in the NT for the supply of gas until the end of 2024. For the remainder of the year, the Mereenie and Palm Valley fields operated at full capacity, with brief turndowns in June and July due to seasonal demand fluctuations. The flare gas recovery compressor (FGRC) at Mereenie was brought online in March. The FGRC captures lowpressure waste gas and converts a portion to sales gas, increasing gas sales and reducing total CO2-equivalent emissions at Mereenie by approximately one-third. Work continued on a helium recovery unit study at Mereenie with Twin Bridges and a major helium distributor, with the scope now expanded to consider a helium liquefaction unit. Several Gas Supply Agreements (GSA) were announced during the year, including an agreement with Incitec Pivot to supply gas during 2024 and an agreement with Arafura Rare Earths Limited to supply its Nolans Project in the NT with gas from 2026. This agreement was subsequently amended to a supply period of 2028 to 2030 and remains subject to conditions precedent until 31 December 2024. In April 2024, Cue entered into an as-available gas supply agreement with Power and Water Corporation for the supply of gas into the NT until 31 December 2024. This agreement largely mitigates the loss of contract sales due to the ongoing closure of the NGP. An Expression of Interest was released by the Mereenie Joint Venture to gas buyers in the final quarter of the year for gas supply from 2024-2030. Subsequent to the year-end, Cue announced contracts with the Northern Territory Government for the supply of up to 3.6 PJ of gas for the period from 1 January 2025 to 31 December 2030. The contracts are for firm supply of gas from the Mereenie and Palm Valley fields and mitigate the risk of NGP closure in 2025 by increasing firm sales to the Northern Territory Government if the pipeline is unable to deliver gas to existing customers. Existing long-term firm production from Mereenie and Palm Valley is now contracted for the next six years. In August 2024, the Mereenie joint venture announced a Final Investment Decision to drill two development wells in the Mereenie field. A rig contract has been signed, and the wells are expected commence in late December or early January 2025. Financial and operations CUE INTERESTS Mereenie [OL4 & OL5] 7.5% Palm Valley [OL3] 15% Dingo [L7] 15% Operator Central Petroleum Limited 7 Cue Energy Resources Limited Annual Report 2024
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