Significant changes in the state of affairs During the financial year ended 30 June 2026, a number of events occurred that changed the state of affairs of the Consolidated Entity: On 21 August 2025, the Company announced that it had received binding firm commitments to raise approximately $7 million before costs via a placement. The placement involves issuance of 411,764,706 new Fully Paid Ordinary shares at $0.017 per share (Placement Shares), representing a 22.7% discount to the Company’s last closing share price on 18 August 2025. Each Placement Share is accompanied by one Attaching Option exercisable at $0.02 and expiring one year from the date of issue. Additionally, for every two Attaching Options exercised, the Option holder will receive one Bonus Option exercisable at $0.03 and expiring three years from the date of issue. Proceeds from the Placement will be applied towards the Company’s share of drilling costs for the Amistad-2 production well and for general corporate purposes. On 26 September 2025, the Company announced that the Amistad-2 surface hole had been drilled to a measured depth of 327 metres. During drilling of this non-reservoir section, oil impregnation was observed in the recovered samples, and an oil sheen was detected on the shale shakers. The surface casing was subsequently run and cemented in place, and the initial wellhead section, including the BOP stack, was installed and successfully pressure tested. On 10 October 2025, the Company announced the updated Prospective Resource estimates for the undeveloped Vesta Deep (Plover) gas prospect and the Hadrosaurus (Jurassic) prospect within Permit AC/P70 (Melbana Energy 100%), offshore Northwestern Australia. Advanced geophysical analyses resulted in 3.7% increase in estimated prospective resources, with unrisked gross best estimate prospective gas resources increasing from 2,754 Bcf to 2,857 Bcf and unrisked gross best estimate prospective oil resources increasing from 43 MMbbl to 78 MMbbl. The reassessment also resulted in the maturation of the Hadrosaurus lead to prospect status. Contingent Resources associated with the undeveloped Vesta and Swan oil and gas fields remained unchanged at an unrisked gross best estimate of 276 Bcf of gas and 34 MMbbl of oil. On 5 November 2025, the Company announced that the flow testing results of Amistad-2 in Block 9 and confirmed the presence of a highly permeable reservoir; however, no oil was recovered. The well was drilled to a total depth of 2,000 metres and intersected a total of 169 metres of highly porous net reservoir. Following evaluation of the results, plug and abandonment operations commenced. The Company also advised that acquisition of a low-cost 2D seismic survey was nearing completion. On 17 November 2025, the Company announced the commencement of mobilisation activities for the Amistad-11 well in Block 9 with drilling expected to commence and be completed following the formal receipt of all necessary permits and approvals. Amistad-11 was designed as an up-dip twin of the Alameda-28 discovery well and incorporated the latest well design and formation management techniques developed from learnings gained during previous drilling campaigns. On 5 December 2025, the Company announced that drilling of the Amistad-11 well in Block 9 had been deferred pending receipt of outstanding payments due from Sonangol Pesquisa e Produção S.A. (Sonangol), the 70% operator of the Block 9 Production Sharing Contract (PSC). The outstanding amounts related to agreed activities undertaken during 2025, and the Company elected to defer commencement of drilling operations until these payments had been received. On 3 January 2026, the United States intervened in Venezuela, removing President Nicolás Maduro. This has disrupted Venezuela-Cuba oil supply arrangements, potentially affecting the Company’s operations. Management has reviewed its operations planning and continues to monitor the situation and its potential implications. On 12 January 2026, the Company issued 436,764,704 listed options with the ASX stock code MAYOA (the “Options”). The Options were issued with an exercise price of $0.02 per share. The Options were issued in fulfilment of the attaching options to the fully paid ordinary shares issued by the Company on 27 August 2025. On 22 January 2026, the Company announced an operational update regarding the Block 9 Production Sharing Contract (PSC) onshore Cuba for the drilling of Amistad-11. The update confirmed that all equipment and contractors remain available to commence drilling the next well. A rescheduled spud date is now dependent on the Company’s joint-operation partner providing its share of the funds required for this activity. The Production from Amistad-1(which had ceased ahead of the planned commencement of Amistad-11 last year) was briefly resumed recently to alleviate wellhead pressure buildup. On 20 April 2026, the Company provided an operational update highlighting that the integration of newly acquired seismic data and the results from the Amistad-2 well had significantly improved its understanding of the Block 9 oilfield, further derisking future production drilling. The Company further advised that Sonangol Pesquisa e Produção S.A. (Sonangol) had failed to remedy its contractual defaults under the Block 9 Production Sharing Contract (PSC). As a result, Melbana initiated the process to resume 100% ownership of the PSC, subject to regulatory approval. The Company also confirmed that it was evaluating options to recover the USD23.5 million owed by Sonangol in relation to Block 9 activities. On 18 June 2026, the Company announced that the U.S. Department of State had designated Cuba’s state-owned oil and gas company, Unión Cuba-Petróleo (CUPET), as a Specially Designated National (SDN)9 pursuant to Executive Order 14404 issued by the President of the United States on 1 May 202610. CUPET is the Company’s contractual counterparty under the Directors’ Report continued 8 also sometimes referred to as Amistad-1 9 https://www.state.gov/releases/office-of-the-spokesperson/2026/06/sanctioning-cubas-state-owned-oil-and gas-company-union-cubapetroleo/ 10 https://www.whitehouse.gov/presidential-actions/2026/05/imposing-sanctions-on-those-responsible-for repression-in-cuba-and-forthreats-to-united-states-national-security-and-foreign-policy/ 22 Melbana Energy Limited Annual Report 2026
RkJQdWJsaXNoZXIy MjE2NDg3