ECHELON RESOURCES LIMITED — Capital/Financing Update 2022

Dec 18, 2022

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19 December 2022

MAHATO PSC UPDATE – PB-19 PRODUCTION WELL ONLINE

New Zealand Oil & Gas subsidiary, Cue Energy Resources (ASX:CUE), has provided an update that oil production well PB-19 in the Mahato Production Sharing Contract (PSC), Indonesia, has been successfully drilled and completed and is producing approximately 800 barrels of oil per day (bopd).

The update release is attached.

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

For further information please contact the Company on:

email enquiries@nzog.com phone +64 4 495 2424

19 December 2022

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Successful completion of Mahato PB-19 well

• PB-19 in Mahato Production Sharing Contract (PSC), Indonesia, completed and producing ~800 barrels of oil per day

• PB-19 is the sixth well to be drilled in campaign which commenced in June 2022

• A further seven production wells and two water injected wells are planned in the program

• Drilling on next well, PB-11, will commence shortly.

Cue Energy Limited (ASX: CUE) is pleased to announce oil production well PB-19 in the Mahato Production Sharing Contract (PSC), Indonesia, has been successfully drilled and completed and is producing approximately 800 barrels of oil per day (bopd). Cue has a 12.5% interest in the Mahato PSC.

PB-19 is the sixth well drilled in the PB field in the current drilling campaign announced by Cue on 14 June 2022. The well was completed in the Bekasap C sand, which is the main production reservoir in the field. Total current production from the PB field is approximately 5500 bopd.

The PB-10 development well was successfully drilled prior to PB-19. Production from the well has not performed as expected and a workover is underway planned at improving oil production levels.

There are seven production and two water injection wells remain in the current drilling program. The drilling rig is currently moving to the next planned well, PB-11, which is expected to start shortly.

Oil from the PB field is sold on a Dated Brent price basis with approximately a A$1-$2 per barrel discount.

Fig 1. Location of existing wells & future drilling in the PB field

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www.cuenrg.com.au

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Participants in the Mahato PSC Joint Venture are:

Texcal (Operator)	51%
Bukit Energy	25%
Cue	12.5%
Central Sumatra Energy	11.5%

Authorised by the Matthew Boyall, CEO

Any queries regarding this announcement should be directed to the Company on +61 3 8610 4000 or email mail@cuenrg.com.au.

General Legal Disclaimer

Various statements in this document may constitute statements relating to intentions, opinion, expectations, present and future operations, possible future events and future financial prospects. Such statements are not statements of fact, and are generally classified as forward looking statements that involve unknown risks, expectations, uncertainties, variables, changes and other important factors that could cause those future matters to differ from the way or manner in which they are expressly or impliedly portrayed in this document. Some of the more important of these risks, expectations, uncertainties, variables, changes and other factors are pricing and production levels from the properties in which the Company has interests, or will acquire interests, and the extent of the recoverable reserves at those properties. In addition, the Company has a number of exploration permits. Exploration for oil and gas is expensive, speculative and subject to a wide range of risks.

Individual investors should consider these matters in light of their personal circumstances (including financial and taxation affairs) and seek professional advice from their accountant, lawyer or other professional adviser as to the suitability for them of an investment in the Company.

Except as required by applicable law or the ASX Listing Rules, the Company does not make any representation or warranty, express or implied, as to the fairness, accuracy, completeness, correctness, likelihood of achievement or reasonableness of the information contained in this document, and disclaims any obligation or undertaking to publicly update any forward-looking statement or future financial prospects resulting from future events or new information. To the maximum extent permitted by law, none of the Company or its agents, directors, officers, employees, advisors and consultants, nor any other person, accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of the information contained in this document.

Reference to “CUE” or “the Company” may be references to Cue Energy Resources Limited or its applicable subsidiaries

About Cue Energy

Cue Energy Resources Limited is an Australian Securities Exchange (ASX:CUE) listed oil and gas production and exploration company based in Melbourne. Cue’s FY2022 revenue was A$44 million from gas and oil production from the Mahato and Sampang PSCs, Indonesia and Mereenie, Palm Valley and Dingo fields, onshore Australia and the Maari field, offshore New Zealand

www.cuenrg.com.au