Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Safety
• Social Responsibility

Environmental Achievements

• Completed drilling of two discovery wells, Heron-2 and Blackwood-1, with no environmental incidents.

Social Achievements

• Maintained safety performance comparable with industry good practice based on reportable injury statistics.

Governance Achievements

• Implemented Responsible Care® policies through PACIA membership.
• Adhered to APPEA’s social responsibilities, safety and environmental standards.

Climate Goals & Targets

Environmental Challenges

• Heron-2 well encountered unexpected challenges, including extensive loss of drilling fluid and wellbore blockage.
• Difficult market conditions impacting equity markets.

Mitigation Strategies

• Entered into a strategic alliance with Resource Development International (RDI) for funding and project advancement.
• Continued appraisal drilling and seismic surveys to better define resources.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Responsible Care®, APPEA standards

Environmental Metrics

ESG Focus Areas

• Employee well-being
• Community investment
• Environmental protection
• Workplace safety
• Diversity and inclusion

Environmental Achievements

• Minimised waste, spills and emissions to optimise environmental and economic benefits.
• Maintained strict protocols regarding testing of visitors before entry to site, isolation of incoming crews, and maintaining isolation accommodation on site.

Social Achievements

• Prioritised the hiring of suitably qualified people from the countries in which we operate.
• No lost time due to injury and no spills during the reporting period (one minor, unreportable spill post-reporting period).

Governance Achievements

• Complies with the Australian Securities Exchange (ASX) Corporate Governance Council’s Corporate Governance Principles and Recommendations – 4th edition.

Climate Goals & Targets

Environmental Challenges

• Cuba country risks (political, economic, environmental uncertainties, US sanctions restricting access to equipment, personnel, financing, banking, and insurance markets).
• Permits and tenure risks (renewal and minimum work conditions).
• Joint operations risks (inconsistent goals with partners, reputational risk).
• Funding risks (capital-intensive industry, need for future borrowings or capital raisings).
• Exploration risks (expensive and risky, potential for unsatisfactory results).
• Reserves and resources risks (estimates based on limited sampling, uncertainty of recovery).
• Pandemic risks (potential to affect personnel, production, and project delivery).
• Climate change risks (increasing regulations and costs, potential disruption to field operations).

Mitigation Strategies

• Structured international banking, operations, and insurance relationships outside the US to avoid US sanctions.
• Actively monitors obligations in licenses, permits, and PSCs; established process to determine whether to retain, extend, or surrender permits.
• Clearly structured process of contracting with third parties; only participates in joint operations where it has real influence.
• Adequately funded for approved future work plans; actively manages capital structure and requirements; may issue additional equity securities, raise debt, or use other financing solutions.
• Defined limits for risk assumed from single exploration activities; brings in partners beyond those limits.
• Reserves Committee responsible for establishing and reviewing reserve and resource estimates; uses experienced professionals and independent external certifiers.
• Employs crisis and emergency management plans, health emergency plans, and business continuity plans; maintains strict protocols for field operations.
• Environmental policy to minimise environmental impact; actively pursues initiatives to minimise waste, spills, and emissions; monitors weather conditions and has protocols for securing site equipment and personnel safety.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental, Health and Safety
• Community Investment
• Workforce Diversity

Environmental Achievements

• Minimised waste, spills and emissions to optimise environmental and economic benefits.
• Minor recordable but non-reportable spill during the reporting period.

Social Achievements

• Prioritised the hiring of suitably qualified people from the countries in which we operate so as to transfer financial and educational benefits to local communities.
• Emphasis on healthy, safe and diverse workplaces.

Governance Achievements

• Complies with the Australian Securities Exchange (ASX) Corporate Governance Council’s Corporate Governance Principles and Recommendations – 4th edition.

Climate Goals & Targets

Environmental Challenges

• Cuba Country Risks: Political, economic, environmental risks associated with operating in Cuba, including US sanctions.
• Permits and Tenure Risks: Renewal and completion of minimum work conditions.
• Joint Operations Risk: Inconsistent goals with joint operations partners and potential reputational risk.
• Funding Risks: Capital-intensive industry with minimum work program obligations.
• Exploration Risks: Expensive and risky petroleum exploration and development.
• Reserves and Resources Risks: Estimates based on limited sampling.
• Climate Change Risks: Increasing regulations and costs associated with environmental footprint.
• Alameda-3 well: Significant delays due to operational challenges, resulting in no oil flow to surface.

Mitigation Strategies

• Structured international banking, operations and insurance relationships outside the US to avoid US sanctions.
• Actively monitors obligations in licenses, permits and production sharing contracts.
• Clearly structured process of contracting with third parties and maintaining influence in joint operations.
• Discussions with potential new partners and credit providers.
• Corporate strategy defines risk limits for sole-risk exploration activities.
• Reserves Committee with experienced professionals and independent external certifiers.
• Environmental policy to minimise environmental impact.
• Protocols for securing site equipment and personnel safety.
• Studies undertaken to determine causes of Alameda-3 results and formulate reservoir workover strategies.

Supply Chain Management

Climate-Related Risks & Opportunities