Operating Review continued was notified that it was deemed to have withdrawn and that its 70% interest is to be assigned to Melbana, subject to regulatory approval. Amounts owed remain an obligation of the former partner, and Melbana is pursuing recovery. A partial payment has since been received in September 2026 but falls significantly short of resolving the full outstanding amount. UNITED STATES SANCTIONS On 11 June 2026, following Executive Order 14404 signed on 1 May 2026, the United States designated CUPET as a Specially Designated National. CUPET is Melbana’s counterparty under the Block 9 PSC The designation generally prohibits United States persons from dealing with CUPET and creates potential secondary sanction risk for non-United States parties. Neither Melbana nor any of its subsidiaries has been designated. Australia does not maintain sanctions against Cuba, and Melbana is not a United States person. Nevertheless, the designation materially constrained the Company’s ability to operate due to increased reluctance from other nonUnited States parties to continue supporting any Cuba related activities regardless of their sanctions status. Given the designation, Melbana suspended direct financial, technical and administrative support of the PSC while it obtained advice and assessed its position. CUPET was informed. Trading in the company’s securities was halted and then voluntarily suspended while the Board sought guidance and clearer direction in relation to the sanctions. The Company’s securities resumed trading on 18 June 2026. CARE AND MAINTENANCE By year end, Block 9 was on care and maintenance. Alameda-2 was shut-in, Amistad-11 and the 3D seismic program were deferred, expatriate personnel were withdrawn, and contractor and equipment commitments were released. Site activity was limited to maintaining well integrity, securing the site crude inventory, and preserving the Company’s position under the PSC. These measures preserve the asset pending any resumption of operations. A restart would require funding, a regulatory position that permits operations, remobilisation of the team, and secure supplies of fuel and consumables. 08 Melbana Energy Limited Annual Report 2026
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