Sydney | Melbourne | Canberra MNSA Pty Ltd ABN 59 133 605 400 Level 1, 283 George St Sydney NSW 2000 GPO Box 2943 Sydney 2001 Tel (02) 9299 0901 Fax (02) 9299 8104 Email admin@mnsa.com.au Liability limited by a scheme approved under Professional Standards Legislation. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the year ended 30 June 2026. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Review of going concern The Key Audit Matter How the matter was addressed in the audit During the year ended 30 June 2026, the Group incurred a net loss after tax of $50,220,823 (2025: $4,151,446), and had net cash outflows from operating, investing and financing activities of $4,216,914 (2025: $7,420,297), and as of that date, the Group had cash and cash equivalents of $472,504 (2025: $ 5,115,674) and had a net current assets of $7,824,820 (2025: 6,726,659) In assessing going concern of the Group, we note that current assets include $22,654,175 receivable from Sonangol. In our review we see this as significant in relation to the going concern assumption. Accordingly, we considered the appropriateness of the going concern assumptions. Our audit procedures included the following: • Obtained and reviewed management's cash flow forecasts for the next 12 months to evaluate whether projected liquidity levels are sufficient to support the Group’s operations. • Challenged management's assumptions and obtained explanations for significant variances in the cash flow forecasts. • Tested the mechanical accuracy of the forecasting model used. • Evaluated the critical dependency on the recovery of the Sonangol receivable in supporting forecast cash requirements and verified subsequent receipt of payments. • Ensured appropriate disclosures related to going concern were included in the financial report. Farm-out arrangement - Cuba Block 9 The Key Audit Matter How the matter was addressed in the audit As at 30 June 2026 the Group recognised a receivable of $22,654,175 in relation to the Farm-out arrangement from Sonangol. In addition, the Group received $9,174,312 in cash payments as proceeds of the Farm-out arrangement. This area is a key audit matter due to the significant judgement involved in determining the recoverability of these balances and its impact to going concern assumptions. During our audit, we analysed agreements in respect to the transactions, assessed internal reporting and substantiated transactions on a sample basis. We questioned management on treatment and challenged their assessment. Our audit included performing the following: • Assessed accounting treatment of significant transactions; • Reviewed disclosures within the financial report; • Reviewed mathematical accuracy of calculations. • Reviewed farm-out reporting and communication between Melbana and Sonongol; • Completed substantive tests of detail on expenditure incurred during the period; and • Reviewed subsequent receipts of receivables. 81 Melbana Energy Limited Annual Report 2026
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