Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental, Social, and Governance (ESG)

Climate Goals & Targets

Environmental Challenges

• Economic uncertainty due to geopolitical events (Ukraine invasion, Israel-Hamas conflict), leading to volatile commodity prices, exchange rates, and inflation.
• Need to raise capital for Sawn Lake development and potential international concessions.
• Compliance with evolving ESG policies and climate change measures (costs not yet quantified).

Mitigation Strategies

• Bought out Andora's minority shareholders for 100% ownership.
• Addressing issues with defaulting partner in Sawn Lake project (anticipated resolution by Q2 2024).
• Negotiating a joint bid and study agreement for potential onshore Thailand oil and gas licensing round.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental, Social, and Governance (ESG)

Climate Goals & Targets

Environmental Challenges

• Direct or indirect costs of compliance with greenhouse gas-related regulations and ESG directives may have an adverse effect on the Company's and its customers’ businesses, financial condition, results of operations and prospects; however, at this time these costs have not yet been quantified.
• Events such as the Covid-19 pandemic and the invasion of Ukraine by Russian forces have resulted in a significant increase in economic uncertainty, with more volatile commodity prices, currency exchange rates and interest rates, and increasing rates of inflation.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: KPMG LLP

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Limited operational history and the risks associated with early-stage companies (undercapitalization, cash shortages, lack of revenue, limited resources).
• Substantial capital requirements for acquisition, exploration, development, and production of oil and natural gas reserves and resources.
• Reliance on operators and key employees without key man insurance policies.
• Potential conflicts of interest among directors and officers involved in other oil and gas companies.
• Potential for increased debt levels above industry standards through acquisitions.
• Exposure to third-party credit risk through contractual arrangements.
• Economic uncertainty due to geopolitical events (e.g., the invasion of Ukraine, the Israel-Hamas conflict), leading to volatile commodity prices, currency exchange rates, interest rates, and inflation.
• Evolving climate change and ESG policies and the potential costs of compliance with greenhouse gas-related regulations and ESG directives.

Mitigation Strategies

• The company raised capital in 2023 to address near-to-medium-term liquidity requirements.
• Successful court rulings related to enforcement actions against joint venture interest holders at the Sawn Lake heavy oil project.
• Plans to focus on near-term shareholder value at Sawn Lake after resolving issues with joint venture partners (anticipated by mid-May 2024).
• Withdrawal from activities in Indonesia and working to finalize abandonment and reclamation activities and settle all remaining obligations.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental, Social, and Governance (ESG)

Climate Goals & Targets

Environmental Challenges

• Economic uncertainty due to geopolitical events (e.g., war in Ukraine), leading to volatile commodity prices, exchange rates, and inflation.
• Compliance with evolving climate change and ESG regulations.
• Need for additional capital to fund commercial development of Sawn Lake property and future international concessions.
• Onerous natural gas pipeline tariff agreement.

Mitigation Strategies

• Enforcement actions against Sawn Lake partners; plans to farm out or sell the asset.
• Participation in onshore Thailand bid round.
• Management considers potential impacts of economic and geopolitical events in estimates.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental, Social, and Governance (ESG)

Climate Goals & Targets

Environmental Challenges

• Compliance with greenhouse gas-related regulations and ESG directives may have an adverse effect on the Company's and its customers’ businesses, financial condition, results of operations and prospects.
• Significant estimates and judgment currently made by management which could be significantly impacted by climate and climate-related matters include: Useful life of assets; Cost and ability to develop the Company’s existing oil and gas properties or its ability to acquire and develop additional concessions and; Amounts recorded for decommissioning provision.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS