Interim report
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84 Amoy Street, #03-01, Singapore 069903 Company Number 201026677K | P: +65 6517 9700 | E: investors@conradasia.com | W: conradasia.com CONFIDENTIAL CONFIDENTIAL INTERIM REPORT For the Period Ended 30 June 2026
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Conrad Asia Energy Ltd. Page 2 of 40 Interim Report | 30 June 2026 11 September 2026 ASX: CRD Interim Report for the Period Ended 30 June 2026 Table of Contents Directors’ Report ............................................................................................................................................................................ 4 Highlights – First Half 2026............................................................................................................................................................. 4 Operational & Financial Update – First Half 2026 .......................................................................................................................... 5 Condensed Consolidated Statement of Comprehensive Income for the Six -Month Financial Period Ended 30 June 2026 ....... 12 Condensed Consolidated Statement of Financial Position as at 30 June 202 6 ............................................................................ 13 Condensed Consolidated Statement of Changes in Equity for the Six -Month Financial Period Ended 30 June 2026 ................. 14 Condensed Consolidated Statement of Cash Flows for the Six -Month Financial Period Ended 30 June 2026 ............................ 15 Notes to Interim Financial Statements ......................................................................................................................................... 17 Directors’ Statement .................................................................................................................................................................... 35 Independent Auditor’s Review Report ......................................................................................................................................... 38
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Conrad Asia Energy Ltd. Page 3 of 40 Interim Report | 30 June 2026 Corporate Directory Conrad Asia Energy Ltd (ASX: CRD) Directors Peter Botten Executive Chairman Miltiadis Xynogalas Executive Director David Johnson Executive Director and COO Paul Bernard Non-Executive Director Jeremy Brest Non-Executive Director Mario Traviati Non-Executive Director Australian Local Agent & ASX Contact Lachlan Morley Boardroom Pty Limited Level 8, 210 George Street Sydney NSW 2000, Australia Company Secretary Regine Lai Boardroom Corporate & Advisory Services Pte. Ltd. 1 Harbourfront Avenue Keppel Bay Tower #14-07 Singapore 098632 Head Office South Quarter Tower A 15th Floor, Unit H JI. R.A. Kartini Kav. 8 Cilandak Jakarta 12430, Indonesia Registered Office 84 Amoy Street #03-01, Singapore 069903 Share Registry Boardroom Pty Limited Level 8, 210 George Street Sydney NSW 2000, Australia Australian Lawyers Clayton Utz Level 27, 250 St Georges Terrace Perth WA 6000, Australia Auditors Moore Stephens LLP 10 Anson Road #29-15 International Plaza Singapore 079903 Website www.conradasia.com
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Conrad Asia Energy Ltd. Page 4 of 40 Interim Report | 30 June 2026 Directors’ Report Directors Peter Botten Executive Chairman Miltiadis Xynogalas Executive Director David Johnson Executive Director and COO Paul Bernard Non-Executive Director Jeremy Brest Non-Executive Director Mario Traviati Non-Executive Director Principal Activities The principal activities of Conrad Asia Energy Ltd ( ASX: CRD) (the “ Company” or “ Conrad”) during the six months ended 30 June 2026 were to carry out exploration, appraisal and development activities for natural gas in Asia. The Company has Production Sharing Contract (“PSC”) interests in Indonesia. Dividends No dividends have been declared, provided for or paid in the financial period ended 30 June 2026. Highlights – First Half 2026 Conrad Asia Energy Ltd ( ASX: CRD ) (the “ Company” or “ Conrad”), an ASX-listed Asia -focused natural gas exploration and development company, is pleased to provide an overview of activities for the six months ended 30 June 2026 (“Interim”, “Reporting Period” or “First Half”) during which considerable progress has been made in the development of Conrad’s Mako Gas Project in the Duyung Production Sharing Contract (“Duyung PSC”) located in the West Natuna Sea. In the West Natuna Sea , Conrad has continued to mature the commercial development of the Mako Gas Project. During the Reporting Period, the Company announced the Final Investment Decision (“FID”) for the project1 following completion of key commercial, technical and funding milestones, including execution of a gas sales agreement and the previously announced transaction to farm-down 75% Participating Interest (“PI”) to Nations Natuna Barat (“ Nations” or “NNB”), a subsidiary of the Arsari Group (the “NNB PI Transfer”). Under the agreed project structure, development capital expenditures (“ Capex”) are to be funded by NNB, resulting in the project being fully funded (including a substantial contingency). Conrad recognised Reserves in the Project for the first time, booking 1P Reserves of 20 million barrels of oil equivalent (“mmboe”) and 2P Reserves of 29 mmboe, net attributable to Conrad based on its participating interest as at 31 December 2025, PI of 76.5% 2. Through the First Half, Conrad continued to progress the project through the execution of key binding contracts, including the drilling rig, the Subsea Umbilical, Riser , and Flowline (“SURF”), the Conductor Support Frame (“ CSF”), the Mobile Offshore Production Unit (“ MOPU”) and various s upporting facilities and services. Subsequent to the end of the Reporting Period, b y the end of July 2026, letters of award covering more than US$290 million of Project capital contracts had been issued , constituting over 90% of the total Capex, which the Company continues to estimate at US$320 million, unchanged from previous guidance. The Project continues to be fully funded (including a substantial contingency). First gas remains targeted for 4Q 2027. 1 ASX Release, Formal Approval of FID for Mako Gas Project, 03 March 2026 2 Upon completion of the transfer of Coro’s 15% PI and Empyrean’s 8.5% PI to Conrad, the transfer of Conrad’s 75% PI to Nations, and the issue of 8.5% equity in WNEL Holdings to Empyrean (together, the “Transactions”), Conrad will hold a 22.875% operated effective PI in the Duyung PSC via its interests in WNEL. A restatement of Reserves and Resources will be issued upon completion of the Transactions.
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Conrad Asia Energy Ltd. Page 5 of 40 Interim Report | 30 June 2026 During the Reporting Period, Conrad was also informed that PT PLN Energi Primer Indonesia (“PLN EPI”), the contracted buyer of 100% of the gas from the Mako Gas Project, completed the "hot tap" connection on the West Natuna Transportation System (“WNTS”) to the Pemping gas pipeline project, which is the delivery point for Mako’s gas into Batam. This marked an important step in developing infrastructure that will connect Natuna gas supplies to Indonesia's domestic energy market . The pipeline is expected to be commissioned during September 2026. During the First Half, Conrad also continued to make progress on the execution of the NNB PI Transfer , including satisfaction of all conditions to make the NNB PI Transfer effective. This triggered the receipt of US$5 million, which was the first tranche of the total payment consideration of US$16 million. Subsequently, the Company received approval from Indonesia’s Ministry of Energy and Mineral Resources (“MEMR ”) for the transfer of the 15% PI of Coro Energy plc (“ Coro”) in Duyung PSC to the Group’s subsidiary West Natuna Exploration L td (“WNEL”) on 13 March 2026. After the Reporting Period, on 23 July 2026, the Company received MEMR approval for the transfer of the 8.5% PI of Empyrean Energy plc (“Empyrean”) in Duyung PSC to WNEL. Further, on 27 August 2026, the Company received MEMR approval for, and subsequently reached completion of, the NNB PI Transfer, also triggering the payment of US$4 million from NNB, which is the second tranche of the cash consideration for the NNB PI Transfer . The third tranche of US$7 million is payable upon commencement of commercial production. The remainder of the acquisition consideration will be paid through production revenues until 75% of past costs have been recovered. During the Reporting Period, Conrad also announced a leadership restructure . With the successful transition of the Mako Gas Project from exploration to a fully funded development, Miltos Xynogalas decided to step back from his role as CEO, with effect from 31 August 2026, to transition to a new executive role focused on partner relationships, business development across the Indonesian and regional portfolio, and engagement with Indonesian government stakeholder s. Peter Botten was appointed Executive Chairman, with an expanded mandate covering Australian capital markets engagement, investor communication, oversight of the Mako development through to first gas, and continued progression of Conrad's Aceh assets. Conrad commenced the search for a new CEO 3. Operational & Financial Update – First Half 2026 Duyung PSC - Mako Gas Field 22.875% PI (post completion of all PI transactions), Operator Duyung PSC is located in the Riau Islands Province, within Indonesian waters in the West Natuna area, approximately 100 km to the north of Matak Island and 400 km northeast of Batam (Figure 1). The Mako gas field is located in the Duyung PSC at a water depth of approximately 91 metres. The Mako Gas Project is initially planned to comprise six development wells tied back to a leased MOPU (Figure 1). The MOPU has a design capacity of 172 million standard cubic feet per day (“MMscfd”). Sales gas will be transported via an approximately 59 km long, 18-inch pipeline to the KF platform in the adjoining Kakap PSC, then through the WNTS pipeline for delivery to the Indonesian domestic market. In July 2025, the Company announced that it had signed a binding Gas Sales Agreement (“GSA ”) for 100% of the gas from the Mako Gas Project to be sold to PT PLN EPI , a wholly owned subsidiary of PT Perusahaan Listrik Negara (Persero) , with a total contract quantity of 392 thousand billion British thermal units (“TBtu”) extending up to 2037 and plateau sales rates of up to 111 billion British thermal units per day ("Bbtud"), at attractive oil-linked gas prices linked to the Indonesian Crude Price (“ICP”), an oil price index similar to Brent. Supply will be facilitated via a new spur pipeline from the WNTS to Pemping Island, Riau Province. During the First Half, Conrad was informed that PLN EPI completed the "hot tap" connection on the WNTS to the Pemping gas pipeline project, which is the delivery point for the gas from the Mako Gas Project. This was an important step in developing infrastructure that will connect Natuna gas supplies to Indonesia's domestic energy market. Gas allocation volumes and transportation tariffs within the WNTS have been agreed with SKK Migas and the WNTS Joint Venture. A formal Gas Transportation Agreement was executed during the First Half . 3 ASX Release, Conrad Announces Leadership Structure as Company Advances Toward First Gas, 03 June 2026
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Conrad Asia Energy Ltd. Page 6 of 40 Interim Report | 30 June 2026 Figure 1 – Location Map of Duyung PSC Figure 2 – Mako Field Development Concept Layout On 3 March 2026, the Company announced that it had taken FID to proceed with the development of the Mako Gas Project 4. FID followed completion of key commercial, technical and funding milestones, including execution of a gas sales agreement and the previously announced NNB PI Transfer. Under the agreed project structure, development Capex are to be funded by NNB, resulting in the Mako Gas Project being fully funded (including a substantial contingency). 4 ASX Release, Formal Approval of FID for Mako Gas Project, 03 March 2026
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Conrad Asia Energy Ltd. Page 7 of 40 Interim Report | 30 June 2026 At YE25, Gaffney Cline Associates, in their annual independent review of the reserves and resources of the Mako Gas field, have, for the first time, recategorised a portion of Mako gas volumes as Reserves. As at 31 December 2025, and based on Conrad holding a 76.5% PI in Duyung PSC, Mako is estimated to contain 2P Reserves of 330 Bcf, 100% (170 Bcf net attributable, at 76.5% PI) and 2C Contingent Resources of 12 Bcf, 100% (9 Bcf net attributable) 5. Through the First Half, Conrad continued to progress the execution of the NNB PI Transfer: (1) On 23 February 2026, the Company announced that the Company and WNEL had satisfied the conditions precedent for the NNB PI Transfer to become effective 6. This triggered the receipt of US$5.0 million, which was the first tranche of the agreed total cash consideration of US$16.0 million. (2) On 13 March 2026, the Company received MEMR approval for the transfer of Coro’s 15% PI in Duyung PSC to the Group’s subsidiary WNEL. This transfer was part of the previously announced settlement agreement between Conrad and Coro to resolve a dispute related to their outstanding cash call arrears associated with Duyung PSC. On 24 April 2026 t he Company issued to Coro 500,000 new Chess Depository Interests in Conrad (“ Conrad Shares”)7. The Conrad Shares were issued from the share allocation approved by Conrad shareholders during the AGM of 18 June 2025. (3) On 23 July 2026, the Company received MEMR approval for the transfer of Empyrean’s 8.5% PI in Duyung PSC to WNEL. This transfer was part of the previously announced settlement agreement between Conrad and Empyrean to resolve a dispute over outstanding cash call arrears associated with Duyung PSC. (4) On 27 August 2026, the Company received MEMR approval for, and subsequently reached completion of, the NNB PI Transfer, also triggering the payment of US$4 million from NNB which is the second tranche of the cash consideration for the NNB PI Transfer (from the total cash consideration of US$16 million, of which the first tranche of US$5 million was received in March 2026). The third tranche of US$7 million is payable upon commencement of commercial production. The remainder of the acquisition consideration will be paid through production revenues until 75% of past costs have been recovered. (5) Conrad will issue 8.5% equity in WNEL Holdings Pte Ltd to Empyrean, and consequently hold a 22.875% operated effective PI in the Duyung PSC via its interests in WNEL 8. (6) A restatement of Reserves and Resources will be issued upon completion of the transactions. Total Capex to first gas is estimated at US$320 million (100%), (WNEL 25% share approximately US$80 million), in line with prior guidance 9,10. In addition, the MOPU contract requires payment of US$4 million for the purchase of a donor rig and a US$26 million facility equipment down payment, which is accounted for as part of a previously announced provision of approximately US$35 million (100%). Future operating costs are targeted as US$70- 80 million (100%) per annum (including pipeline transportation costs). During the First Half, Conrad continued to progress the execution of the project with the execution of key binding contracts, including: (1) SURF11: with PT Timas Suplindo (“ Timas”) with scope of work including (i) verification of front -end engineering and design and execution of a detail engineering design, (ii) procurement, management, storage, and integration of materials, (iii) construction and assembly, coating and inspection of subsea structures and associated SURF components, (iv) transportation and installation, and (v) pre-commissioning and commissioning support; 5 Reserves & Resources Report for The Duyung PSC, Indonesia, GaffneyCline Associates, 27 March 2026 6 ASX Release, Farm-Out Milestone Unlocks Consideration Payment, 23 February 2026 7 ASX Release, Application for quotation of securities - CRD, 24 April 2026 8 ASX Release, Conrad Secures Farm Down & Funding for Mako Development, 19 November 2025 9 P50 Capex estimate excluding any potential down payment for the planned leased MOPU 10 ASX Release, Annual Report 2025 for the Year Ended 31 December 2024, 31 March 2025 11 ASX Release, Execution of Mako SURF Contract, 08 May 2026
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Conrad Asia Energy Ltd. Page 8 of 40 Interim Report | 30 June 2026 (2) Drilling Rig 12: with PT Pertamina Drilling Services Indonesia (“ Pertamina Drilling ”) through the PDSI – ADES Consortium for a firm period of 180 days, with options to extend, for the provision of an independent -leg cantilever jack-up drilling rig, the Admarine 502, for the drilling of six development wells and the installation of the CSF to support the development of the Mako Gas Field; (3) MOPU13: with PT Duta Marine/PT Pakarti Tirtoagung (“ PT DM”) for the provision of a leased MOPU unit, with the scope of work including (i) sourcing and conversion of a donor jack -up drilling rig to a MOPU in Batam, with a raw gas design capacity of 172 mmscfd, (ii) mobilisation to site, (iii) bareboat charter unt il end of current PSC term (Jan 2037) plus five annual extension options, (iv) operations and maintenance of the MOPU, and (v) demobilisation back to Batam at the end of the contract life; and (4) CSF 14: with PT PAL Indonesia (“ PT PAL”) with scope of work including (i) detailed engineering, (ii) procurement, (iii) construction and assembly of the jacket and topside structures, and (iv) transportation. By the end of July 2026 , WNEL had issued letters of award covering more than US$290 million of Project capital contracts, constituting over 90% of the total Capex. Binding contracts or Letters of Award had been issued for the drilling rig, MOPU, SURF EPCI, and CSF (conductor support frame) EPCT. Below is a summary of material contracts already awarded: Scope Type Contractor Drilling Rig Capital ADES SURF (subsea, umbilicals, risers, flowlines) EPCI Capital PT. Timas Suplindo CSF (conductor support frame) Capital PT. PAL Indonesia Supporting Facilities & Drilling Contracts Capital Various (18 awarded by the date of issue of this report) MOPU Operating Duta Marine With contracts representing 90% of the project's value now awarded, we continue to estimate total project costs at US$320 million, unchanged from previous guidance. First gas is still targeted for 4Q 2027. ONWA & OSWA PSCs 100% PI, Operator Figure 3 – Location Map of ONWA & OSWA PSCs 12 ASX Release, Execution of Mako Offshore Drilling Rig Contract, 05 June 2026 13 ASX Release, Execution of Mako Mobile Offshore Production Unit Contract, 22 June 2026 14 ASX Release, Execution of Mako SURF Contract, 08 May 2026
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Conrad Asia Energy Ltd. Page 9 of 40 Interim Report | 30 June 2026 Conrad holds 100% operated interests in both ONWA and OSWA PSCs, which were awarded to Conrad in January 2023. The blocks together cover approximately 20,000 square km, with each PSC having a 30- year tenure. Based on independent competent persons’ reports (“ CPR”) covering the discovered biogenic gas resources in the shallow -water areas of the Aceh PSCs, the estimated gross (100%) 2C Contingent Resource is 215 Bcf of sales gas (162 Bcf net attributable to Conrad, after the government fiscal take) (Table 1) in three of the four discovered gas accumulations in the two PSCs 15. The CPRs for ONWA 16 and OSWA17 ascribed a net present value (“ NPV”) of US$88 million net attributable to Conrad, assuming a contractor take of 72.1% (this does not account for potential 10% local state participation, which could occur after Final Investment Decision) . Water Depth PSC Discovery Contingent Resources (Bcf) Gross (100%) Net Attributable to Conrad Low (1C) Mid (2C) High (3C) Low (1C) Mid (2C) High (3C) Shallow Water ONWA Meulaboh 33 95 146 28 69 104 ONWA Meulaboh East 6 25 52 5 18 35 OSWA Singkil 54 95 111 46 75 83 Total (arithmetic addition) 93 216 309 78 162 221 Table 1 – ONWA & OSWA Contingent Resources (May 2023) Figure 4 – Location Map of ONWA 3D Seismic and Meulaboh Cluster The planned circa 500 square kilometre 3D seismic acquisition programme will focus on a shallow -water (50-80 metres) area that includes the cluster of three gas discoveries and six leads (see Tables 1 & 2), where previous exploratory success rates have been close to 70%. This programme will materially enhance the Company’s understanding of the subsurface in the ONWA shallow-water area, and will provide: greater certainty about the size of the existing discoveries; the scale of identified Prospective Resources; and the potential for further resource upside in this sparsely explored offshore area. The seismic will enable Conrad to pursue a campaign of further drilling and preparation of a Plan of Development with gas sales, which may include mini-LNG or power generation. During the First Half , Conrad continued to progress discussions with potential equity partners in relation to a minority, non- operated farm-in into both of its Aceh assets. Several parties have already attended a data room for a prospective farm -down of some of Conrad’s PI in the ONWA and OSWA PSCs. 15 ASX Release, 75% Increase in Conrad Total Net Attributable Resources, 16 & 18 May 2023. All material assumptions and technical parameters underpinning the estimates in this market announcement have not materially changed and continue to apply 16 Executive Summary Competent Person’s Report – Meulaboh Discovery, May 15, 2023, THREE60SUBS/INTER/02/2023-010A 17 Executive Summary Competent Person’s Report – Singkil Discovery, May 15, 2023, THREE60SUBS/INTER/02/2023-010B
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Conrad Asia Energy Ltd. Page 10 of 40 Interim Report | 30 June 2026 Sustainability During the First Half, the Company maintained strong safety performance across its operated activities. The Company recorded zero fatalities, zero lost time injuries, and no recordable or first aid incidents. As the Company progresses toward development of the Mako Gas Field and advances appraisal and development activities within the Aceh PSCs, risk management systems are being enhanced to reflect the increasing scale and complexity of operations. This include s contractor management, major hazard risk assessment, emergency preparedness and leadership engagement in safety culture. Conrad seeks to minimise the environmental footprint of its activities through disciplined operational planning, regulatory compliance and adoption of recognised environmental management practices. Environmental impact assessments are undertaken in accordance with host government requirements, and mitigation measures are incorporated into project design and execution plans. The Company aims to monitor and manage key environmental risks, including emissions, waste, water use and spill prevention. As projects mature toward development, environmental controls and reporting frameworks are strengthened to ensure alignment with evolving regulatory expectations and stakeholder standards. Petroleum Tenement Holdings As of 30 June 2026, Conrad’s petroleum tenement holdings were: Tenement and Location Beneficial Interest at 31 December 2025 Beneficial Interest acquired/(disposed) during 1H 2026 Beneficial Interest at 30 June 2026 Duyung PSC West Natuna Basin, Indonesia 76.5% 15% 91.5%18 Offshore North West Aceh PSC Offshore Aceh Province, Indonesia 100% nil 100% Offshore South West Aceh PSC Offshore Aceh Province, Indonesia 100% nil 100% Summary Financial Results The Group’s consolidated profit after income tax for the six months ended 30 June 2026 was US$8.59 million (six months ended June 2025: consolidated loss after income tax of US$2.40 million). The Group continued to advance the development of the Mako Gas Project during the Reporting Period. Oil and gas assets under development increased to US$66.22 million as at 30 June 2026 (31 December 2025: US$28.42 million), reflecting continued investment into the Mako Gas Project as well as the acquisition of Coro's 15% PI. Prepayments increased to US$24.04 million, primarily due to advance payments made for key long -lead development equipment in support of the project. The Group's financial position remained strong, with total assets increasing to US$102.72 million as at 30 June 2026 (31 December 2025: US$44.90 million), primarily reflecting continued investment in to the Mako Gas Project as well as the acquisition of Coro's 15% PI. The increase was principally supported through financing provided by NNB, with borrowings increasing to US$39.09 million (31 December 2025: US$7.29 million). Cash and cash equivalents increased to US$3.26 million as at 30 June 2026 (31 December 2025: US$1.36 million), providing continued liquidity to support the ongoing execution of the project. 18 This will reduce to 22.875% post the completion of the Empyrean PI Transfer and the NNB PI Transfer
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Conrad Asia Energy Ltd. Page 11 of 40 Interim Report | 30 June 2026 The Group recorded net cash used in operating activities of US$11.04 million, primarily reflecting working capital movements associated with the advancement of the Mako development. Net cash used in investing activities amounted to US$17.80 million, relating to expenditure on the Mako Gas Project, partially offset by advance consideration received under the farm- down agreement. These cash outflows were substantially funded through drawdowns under the financing arrangements with NNB, resulting in net cash generated from financing activities of US$30.75 million. The Group remains focused on progressing the Mako Gas Project towards first commercial production while continuing to execute the remaining development activities and associated project financing arrangements . Significant Changes in State of Affairs Beyond the events noted above, there were no other significant changes in the state of affairs of the Company during the period that require separate disclosure. Events After the Reporting Period As described above: (1) On 23 July 2026, the Company received MEMR approval for the transfer of Empyrean’s 8.5% PI in Duyung PSC to WNEL. This transfer was part of the previously announced settlement agreement between Conrad and Empyrean to resolve a dispute over outstanding cash call arrears associated with Duyung PSC. (2) On 27 August 2026, the Company received MEMR approval for, and subsequently reached completion of, the NNB PI Transfer, also triggering the payment of US$4 million from NNB which is the second tranche of the cash consideration for the NNB PI Transfer (from the total cash consideration of US$16 million, of which the first tranche of US$5 million was received in March 2026). The third tranche of US$7 million is payable upon commencement of commercial production. The remainder of the acquisition consideration will be paid through production revenues until 75% of past costs have been recovered. Authorised by the Board of Directors of Conrad. For more information, please contact: Peter Botten Jane Morgan Executive Chairman Investor & Media Relations investors@conradasia.com jm@janemorganmanagement.com.au +65 6517 9700 +61 405 555 618
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Conrad Asia Energy Ltd. Page 12 of 40 Interim Report | 30 June 2026 Condensed Consolidated Statement of Comprehensive Income for the Six-Month Financial Period Ended 30 June 2026 Consolidated 6 months ended 30 June Consolidated 6 months ended 30 June Note 2026 2025 US$ US$ Revenue - - Other income 2 13,174,604 1,554 Other operating expenses (3,646,805) (2,397,406) Finance income 4 905 3,728 Finance expense 5 (942,248) (9,360) Profit/(loss) before income tax 3 8,586,456 (2,401,484) Income tax 6 - - Profit/(loss) after tax representing total comprehensive Income/(loss) for the financial period 8,586,456 (2,401,484) Profit/(loss) per share - Basic 14(a) 0.04 (0.01) - Diluted 14(a) 0.04 (0.01) The accompanying notes form an integral part of the condensed interim consolidated financial statements.
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Conrad Asia Energy Ltd. Page 13 of 40 Interim Report | 30 June 2026 Condensed Consolidated Statement of Financial Position as at 30 June 2026 30 June 31 December Note 2026 2025 US$ US$ ASSETS Non-current assets Property, plant and equipment 7 66,594,993 28,536,372 Exploration and evaluation assets 9 901,472 862,120 Other receivables 11 2,761,764 2,716,754 70,258,229 32,115,246 Current assets Financial asset at fair value through profit or loss 10 25,465 3,008 Other receivables 11 5,131,427 3,718,544 Prepayment 12 24,041,190 7,705,446 Cash and cash equivalents 13 3,263,985 1,360,602 32,462,067 12,787,600 TOTAL ASSETS 102,720,296 44,902,846 EQUITY AND LIABILITIES Equity and reserves Share capital 14 87,372,248 86,852,748 Employee benefits reserve 15 1,284,048 1,258,029 Accumulated losses (43,460,058) (52,046,514) 45,196,238 36,064,263 Liabilities Non-current liabilities Borrowings 19 39,093,350 7,292,606 Lease liabilities 20 162,682 - 39,256,032 7,292,606 Current liabilities Other payables 16 18,087,946 1,371,310 Warrants 17 - 55,508 Lease liabilities 20 180,080 119,159 18,268,026 1,545,977 TOTAL EQUITY AND LIABILITIES 102,720,296 44,902,846 The accompanying notes form an integral part of the condensed interim consolidated financial statements.
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Conrad Asia Energy Ltd. Page 14 of 40 Interim Report | 30 June 2026 Condensed Consolidated Statement of Changes in Equity for the Six -Month Financial Period Ended 30 June 2026 Total Employee attributable to Share Accumulated benefits the owners of capital losses reserve the Company US$ US$ US$ US$ Group Balance as at 1 January 2026 86,852,748 (52,046,514) 1,258,029 36,064,263 Profit after tax representing total comprehensive income for the financial period - 8,586,456 - 8,586,456 Issuance of ordinary shares 519,500 - - 519,500 Recognition of share-based payments under Conrad Incentive Plan - - 46,255 46,255 Adjustment to employee share options - - (20,236) (20,236) Balance as at 30 June 2026 87,372,248 (43,460,058) 1,284,048 45,196,238 Balance as at 1 January 2025 81,254,153 (47,963,614) 1,369,279 34,659,818 Loss after tax representing total comprehensive loss for the financial period - (2,401,484) - (2,401,484) Issuance of ordinary shares 5,816,986 - - 5,816,986 Costs of issuing capital (245,375) - - (245,375) Recognition of share-based payments under Conrad Incentive Plan - - 153,825 153,825 Adjustment to employee share options - - (346,265) (346,265) Balance as at 30 June 2025 86,825,764 (50,365,098) 1,176,839 37,637,505 The accompanying notes form an integral part of the condensed interim consolidated financial statements.
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Conrad Asia Energy Ltd. Page 15 of 40 Interim Report | 30 June 2026 Condensed Consolidated Statement of Cash Flows for the Six -Month Financial Period Ended 30 June 2026 Consolidated 6 months ended 30 June 2026 Consolidated 6 months ended 30 June 2025 US$ US$ Cash Flows from Operating Activities Profit/(loss) before income tax 8,586,456 (2,401,484) Adjustments for: Interest income (905) (3,728) Interest expense 942,248 9,360 Provision of impairment loss on amount due from PSC partners (Note 11) - 112,086 Discounting of performance bond (45,010) (52,280) Depreciation of property, plant and equipment 109,758 114,469 Gain on transfer of participating interest (13,173,038) - Fair value (gain)/loss on revaluation of financial assets, at FVPL (22,457) 8,114 Fair value change of warrants (55,508) (463,692) Unrealised foreign exchange (gain)/loss (4,555) 23,254 Employee Incentive Plan expense 46,255 153,825 Adjustment to employee share options (20,236) (346,265) Operating cash flows before working capital changes (3,636,992) (2,846,341) Changes in working capital: Increase in other receivables (5,148,846) (145,160) Increase in prepayments (13,635,854) (958,905) Increase/(decrease) in other payables 11,379,783 (9,073) Cash used in operations (11,041,909) (3,959,479) Interest received 905 3,728 Net cash used in operating activities (11,041,004) (3,955,751) Cash Flows from Investing Activities Purchase of property, plant and equipment (22,761,688) - Increase in exploration and evaluation assets (Note 9) (39,352) (437,558) Advance consideration from farm-down of participating interest 5,000,000 - Net cash used in investing activities (17,801,040) (437,558) Cash Flows from Financing Activities Proceeds from borrowing 30,865,965 - Proceeds from issuance of ordinary shares - 5,816,986 Cost of issuing capital - (245,375) Repayment of lease liabilities (111,764) (112,926) Interest paid (4,909) (6,664) Net cash generated from financing activities 30,749,292 5,452,021 Net increase in cash and cash equivalents 1,907,248 1,058,712 Cash and cash equivalents at the beginning of the financial period 1,360,602 4,113,333 Effect of exchange rate changes on cash and cash equivalents (3,865) (4,002) Cash and cash equivalents at the end of the financial period (Note 13) 3,263,985 5,168,043 The accompanying notes form an integral part of the condensed interim consolidated financial statements.
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Conrad Asia Energy Ltd. Page 16 of 40 Interim Report | 30 June 2026 (cont’d) The reconciliation of movements of liabilities to cash flows arising from financing activities is presented below: Cash flow Non-cash changes 1 January Repayments Interest expense Unrealised foreign exchange Addition 30 June US$ US$ US$ US$ US$ US$ 2026 Borrowings 7,292,606 - 934,779 - 30,865,965 39,093,350 Lease liabilities 119,159 (116,673) 4,909 (8,420) 343,787 342,762 7,411,765 (116,673) 939,688 (8,420) 31,209,752 39,436,112 2025 Lease liabilities 258,289 (119,590) 6,664 17,639 - 163,002 The accompanying notes form an integral part of the condensed interim consolidated financial statements.
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Conrad Asia Energy Ltd. Page 17 of 40 Interim Report | 30 June 2026 Notes to Interim Financial Statements These notes form an integral part of and should be read in conjunction with the accompanying condensed interim consolidated financial statements. 1. Basis of Preparation The condensed interim consolidated financial statements of Conrad Asia Energy Ltd (the “Company” or “Conrad”) and its subsidiaries (the “Group”) for the six-month financial period ended 30 June 2026 have been prepared on a condensed basis in accordance with SFRS(I) 1-34, Interim Financial Reporting. The condensed interim consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s audited consolidated financial statements for the financial year ended 31 December 2025. The financial statements are presented in United States dollars (“US$”), which is the functional currency of the Company. Adoption of new and revised Singapore Financial Reporting Standards (International) (“SFRS(I)”) issued which are effective in the current financial period On 1 January 2026, the Group has adopted the new and revised SFRS(I) and SFRS(I) INTs that are mandatory for application for the financial period. The adoption of these new and revised SFRS(I) and SFRS(I) INTs did not result in substantial changes to the Group’s accounting policies and had no material effect on the amounts reported for the current or prior financial period/years. Adoption of New and Revised SFRS(I) issued but not yet effective At the date of authorisation of these financial statements, the following standards that have been issued and are relevant to the Group and Company but not yet effective: Effective for annual financial periods beginning on or after Amendments to SFRS(I) 18: Presentation and Disclosure in Financial Statements 1 January 2027 Amendments to SFRS(I) 19: Subsidiaries without Public Accountability: Disclosures 1 January 2027 Amendments to FRS 21 The Effects of Changes in Foreign Exchange 1 January 2027 Amendments to SFRS(I) 10 and SFRS(I) 1-28 Investments in Associates and Joint Ventures – Sale or contribution of assets between an investor and its associate or Joint Venture Deferred indefinitely, early application is still permitted
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Conrad Asia Energy Ltd. Page 18 of 40 Interim Report | 30 June 2026 (cont’d) 1. Basis of Preparation (cont’d) Other than below, the directors expect that the adoption of the standards above will have no material impact on the consolidated financial statements in the period of initial application. SFRS(I) 18: Presentation and Disclosure in Financial Statements This standard will replace SFRS(I)1-1 Presentation of Financial Statements. Whilst many of the requirements remain consistent, the new standard will have impacts on the presentation of the Statement of Profit and Loss and consequential impacts on the Statement of Cash Flows. It will also require the disclosure of the non -SFRS(I) management performance measures and may impact the level of aggregation and disaggregation throughout the primary financial statements and the notes. An entity is required to apply the amendments to SFRS(I) 1-1 for annual reporting periods beginning on or after 1 January 2027. Earlier application is permitted. SFRS(I) 18 requires retrospective application with specific transition provisions. The directors will determine the impact on the presentation of the Statement of Profit and Loss and Statement of Cash Flows when effective. (a) Accounting Estimates and Judgements The preparation of the condensed interim consolidated financial statements requires management to make judgements, estimates and assumption that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estima tes and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In preparing this condensed interim consolidated financial statement, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were consistent with those disclosed in the Group’s audited consolidated financial statements for the financial year ended 31 December 2025 . (b) Material Accounting Policy Information The accounting policies were consistent with those disclosed in the Group’s audited consolidated financial statements for the financial year ended 31 December 2025. 2. Other Income 30 June 30 June 2026 2025 US$ US$ Government grants 1,566 1,554 Gain on transfer of participating interest 13,173,038 - 13,174,604 1,554 During the current financial period, the Group recognised a gain upon the completion of the transfer of Coro Energy Duyung (Singapore) Pte. Ltd.'s (“Coro”) 15% participating interest in the Duyung Production Sharing Contract (“Duyung PSC”) to WNEL, following receipt of the required approval from Ministry of Energy and Mineral Resources (“MEMR”) on 13 March 2026. Upon completion of the transfer, WNEL succeeded to Coro’s rights and obligations in respect of the transferred participating interest under the Duyung PSC. Accordingly, WNEL’s participating interest in the Duyung PSC increased from 76.5% to 91.5%, and the Group recognised WNEL’s corresponding additional proportionate share of the underlying assets and liabilities of the Duyung PSC.
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Conrad Asia Energy Ltd. Page 19 of 40 Interim Report | 30 June 2026 3. Profit/(Loss) before Income Tax 30 June 30 June 2026 2025 US$ US$ Depreciation of plant and equipment 109,758 114,469 Discounting effect of performance bond (45,010) (52,280) Computer expense/IT equipment 157,491 94,035 Consultancy fees 417,949 182,388 Provision of impairment loss on amount due from PSC partners - 112,086 Insurance 94,705 99,951 Legal and professional fees 267,009 134,748 Tax on transfer of participating interest 350,000 - Staff costs: - Director’s remuneration 240,000 240,000 - Director’s fees 199,500 175,500 - Fees for professional services 335,025 435,566 - Staff salaries 984,143 767,193 - Staff benefits 81,817 60,854 Travelling 133,374 121,722 Employee Incentive Plan expense 46,255 153,825 Adjustment to employee share options (20,236) (346,265) Fair value (gain)/loss on revaluation of financial assets, at FVPL (22,457) 8,114 Fair value change of warrants (55,508) (463,692) 4. Finance Income 30 June 30 June 2026 2025 US$ US$ Interest income from cash and cash equivalents 905 3,728 5. Finance Expense 30 June 30 June 2026 2025 US$ US$ Interest expense - Others 2,560 2,696 - Lease liabilities (Note 20) 4,909 6,664 - Borrowings (Note 19) 934,779 - 942,248 9,360
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Conrad Asia Energy Ltd. Page 20 of 40 Interim Report | 30 June 2026 6. Income Tax 30 June 2026 30 June 2025 US$ US$ Income tax: - Current period - - The income tax expense varies from the amount of income tax determined by applying the statutory rate of income tax to profit/( loss) before taxation due to the following factors: 30 June 2026 30 June 2025 US$ US$ Profit/(loss) before income tax 8,586,456 (2,401,484) Tax calculated at 17% 1,459,698 (408,252) Tax effects of: - Non-deductible expenses 83,571 33,561 - Non-taxable income (2,944,246) - - Effect of different tax rates of subsidiaries operating in other jurisdictions 563,340 (63,459) - Deferred tax assets not recognised 837,637 438,150 - - Deferred income tax assets are recognised for tax losses carried forward to the extent that realisation of the related tax benefits through future taxable profits is probable. The Group has unrecognised tax losses of approximately US$ 69,000,000 (30 June 2025: US$62,000,000) at the reporting date which could be carried forward and used to offset against future taxable income subject to meeting certain statutory requirements. Deferred tax assets not recognised The components of deferred tax assets not recognised are as follows: 30 June 2026 30 June 2025 US$ US$ Unutilised tax losses (approximate to the nearest million) 12,000,000 10,000,000
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Conrad Asia Energy Ltd. Page 21 of 40 Interim Report | 30 June 2026 7. Property, Plant and Equipment Furniture Oil and gas Office and Office Leased assets under Computers renovation fittings equipment building(1) development (2) Total US$ US$ US$ US$ US$ US$ US$ 2026 Cost Balance at 1 January 95,757 16,132 145,260 4,036 940,405 28,416,225 29,617,815 Acquisition of additional participating interest - - - - - 15,062,904 15,062,904 Additions 5,393 - 12,267 - 343,787 22,744,028 23,105,475 Write-off - - - - (134,567) - (134,567) Balance at 30 June 101,150 16,132 157,527 4,036 1,149,625 66,223,157 67,651,627 Accumulated depreciation Balance at 1 January 95,757 16,132 128,947 4,036 836,571 - 1,081,443 Depreciation 299 - 4,671 - 104,788 - 109,758 Write-off - - - - (134,567) - (134,567) Balance at 30 June 96,056 16,132 133,618 4,036 806,792 - 1,056,634 Net book value At 30 June 2026 5,094 - 23,909 - 342,833 66,223,157 66,594,993 2025 Cost Balance at 1 January 95,757 16,132 151,981 4,036 898,352 - 1,166,258 Transferred from exploration and evaluation assets (Note 11) - - - - - 28,224,603 28,224,603 Additions - - - - 42,053 191,622 233,675 Write-off - - (6,721) - - - (6,721) Balance at 31 December 95,757 16,132 145,260 4,036 940,405 28,416,225 29,617,815 Accumulated depreciation Balance at 1 January 94,846 15,078 117,600 3,243 640,470 - 871,237 Depreciation 911 1,054 12,040 793 196,101 - 210,899 Write-off - - (693) - - - (693) Balance at 31 December 95,757 16,132 128,947 4,036 836,571 - 1,081,443 Net book value At 31 December 2025 - - 16,313 - 103,834 28,416,225 28,536,372 (1) Right-of-use asset arising from leased buildings is recognised in accordance with SFRS(I) 16 Leases . Please see Note 20 for more information.
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Conrad Asia Energy Ltd. Page 22 of 40 Interim Report | 30 June 2026 7. Property, Plant and Equipment (cont’d) (2) Oil and Gas Assets under Development 30 June 31 December 2026 2025 US$ US$ Balance at the beginning of the financial period/year 28,416,225 - Reclassification from exploration and evaluation assets - 28,224,603 Acquisition of additional participating interest 15,062,904 - Additions 22,744,028 191,622 Balance at the end of the financial period/year 66,223,157 28,416,225 During the current financial period ended 30 June 2026, oil and gas assets under development increased by US$15,062,904 following the completion of the acquisition of Coro’s 15% participating interest in the Duyung PSC. Upon completion of the transfer, WNEL’s participating interest in the Duyung PSC increased from 76.5% to 91.5%. As a result, WNEL succeeded to Coro’s rights and obligations in respect of the transferred participating interest and recognised the corresponding oil and gas assets under development attributable to that participating interest. In the previous financial year, exploration and evaluation assets amounting to US$28,224,603 (Note 11) were reclassified to oil and gas assets under development following management’s assessment that the technical feasibility and commercial viability of ex tracting the resource had become demonstrable. The exploration and evaluation assets were assessed for impairment prior to reclassification and no impairment loss was recognised. The oil and gas assets under development relate to capitalised development expenditures incurred for the Mako gas field under the Duyung PSC. As at 30 June 2026, the Mako gas field remains under development, and commercial production has not yet commenced. As such, these oil and gas assets under development are not depreciated. Oil and gas assets under development are carried at cost less accumulated impairment losses and are not depreciated until the commencement of commercial production, at which point depreciation is recognised using the units -of-production method based on proved and probable reserves.
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Conrad Asia Energy Ltd. Page 23 of 40 Interim Report | 30 June 2026 8. Investments in Subsidiaries Company 30 June 2026 31 December 2025 US$ US$ Unquoted equity investments, at cost Balance at the beginning and end of the period/year 17,573 17,573 The details of subsidiaries are as follows: Name of subsidiaries and country of incorporation Principal activities Effective equity interest 30.06.2026 31.12.2025 % % Conrad Petroleum (V) Limited Seychelles International oil and gas exploration, appraisal development and production 100 100 West Natuna Exploration Ltd. British Virgin Islands International oil and gas exploration, appraisal development and production 100 100 Conrad Petroleum OM Pte. Ltd. Singapore International oil and gas extraction 100 100 ONWA Pte. Ltd. Singapore International oil and gas extraction 100 100 OSWA Pte. Ltd. Singapore International oil and gas extraction 100 100 WNEL Holdings Pte. Ltd. Singapore Investment holding company 100 - During the current financial period, the Company incorporated WNEL Holdings Pte. Ltd., a wholly owned subsidiary incorporated in Singapore.
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Conrad Asia Energy Ltd. Page 24 of 40 Interim Report | 30 June 2026 9. Exploration and Evaluation Assets 30 June 31 December 2026 2025 US$ US$ Balance at the beginning of the financial period/year 862,120 28,497,724 Additions during the period/year 39,352 588,999 Reclassification to oil and gas assets under development - (28,224,603) Balance at the end of the financial period/year 901,472 862,120 During the financial period, the Group acquired exploration and evaluation assets by means of: 30 June 31 December 2026 2025 US$ US$ Cash 39,352 588,999 10. Financial Asset at Fair Value through Profit or Loss 30 June 31 December 2026 2025 US$ US$ Investment in quoted shares 25,465 3,008 Movements in financial asset, at fair value through profit or loss are as follows: 30 June 31 December 2026 2025 US$ US$ At the beginning of the financial period/year 3,008 15,099 Fair value gain/(loss) 22,457 (12,091) At the end of the financial period/year 25,465 3,008 Investment in quoted shares pertains to the share consideration received from the disposal of a production sharing contract interest in a subsidiary, WNEL. The quoted shares are listed on the London Stock Exchange and denominated in British Pound Sterling. The investment has no fixed maturity term and held for trading and is measured at FVPL. The share price indication of the investment is based on an active market price, which is a level 1 of the fair value hierarchy.
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Conrad Asia Energy Ltd. Page 25 of 40 Interim Report | 30 June 2026 11. Other Receivables 30 June 31 December 2026 2025 US$ US$ Other receivables and deposits: Production Sharing Contract partners (a) 5,022,402 3,638,839 Impairment loss on PSC partners At the beginning of the period/year - (1,187,597) Allowance during the period/year - 1,187,597 At the end of the period/year - - Net amounts due from PSC partners 5,022,402 3,638,839 Deposits (b) 284,843 292,912 Performance bond (c) 2,536,764 2,491,754 Other receivables 49,182 11,793 7,893,191 6,435,298 Non-current 2,761,764 2,716,754 Current 5,131,427 3,718,544 7,893,191 6,435,298 (a) As at 30 June 2026, WNEL and Empyrean Energy PLC (“Empyrean”) held participating interests of 91.5% and 8.5%, respectively, in the Duyung PSC. During the current financial period, WNEL acquired Coro’s 15% participating interest in the Duyung PSC following receipt of the required approval from MEMR on 13 March 2026 (31 December 2025: WNEL 76.5%, Coro 15% and Empyrean 8.5%). The balance pertains to 100% of the operating costs incurred by WNEL as operator of the Duyung PSC, which are charged to the remaining PSC partner, Empyrean, in accordance with its participating interest. These costs primarily comprise drilling, development and exploration expenditure incurred in relation to the approved gas field and are recoverable through the cash call mechanism. As at 30 June 2026 and 31 December 2025, the PSC partner agreed to offset receivables and payables arising from joint interest billings and, accordingly, the balances are presented on a net basis under “PSC partner”. As at 30 June 2026, management reassessed the recoverability of the receivables from the PSC partner based on information available at the reporting date. Accordingly, there is now no recognised impairment allowance (2025: US$1,187,597). (b) The amount pertains mainly to the working advance placed as deposits to SKK Migas and Badan Pengelola Migas Aceh (“BPMA”), which will be refunded upon the termination of the contract. (c) The amount pertains to the working advance placed as a performance bond to BPMA to guarantee a definite commitment for the first 3 years of the contract. The Group’s internal credit evaluation practices and basis for recognition and measurement for expected credit losses were consistent with those disclosed in the Group’s audited consolidated financial statements for the financial year ended 31 December 2025.
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Conrad Asia Energy Ltd. Page 26 of 40 Interim Report | 30 June 2026 12. Prepayments 30 June 31 December 2026 2025 US$ US$ Prepayments 24,041,190 7,705,446 During the current financial period, included in prepayments is an amount of US$16.34 million in respect of the Group’s share of payments made to PT Indoturbine for the procurement of an electric motor driven compressor (“EMDC”) and US$6.41 million relating to advance payments made to PT Duta Marine/PT Pakarti Tirtoagung for the Mobile Offshore Production Unit (“MOPU”), both for use in relation to the Mako gas field (2025: US$6.49 million). Following the acquisition of Coro's 15% participating interest in the Duyung PSC, the Group also recognised the corresponding share of prepayments attributable to the acquired participating interest. The total contracted cost for the EMDC and MOPU is approximately US$17.86 million and US$7.00 million, of which the portions attributable to the other PSC partners are recognised within amounts due from PSC partners in Note 11. 13. Cash and Cash Equivalents 30 June 31 December 2026 2025 US$ US$ Cash on hand and at bank 3,263,985 1,360,602 14. Share Capital 30 June 31 December 2026 2025 No. of shares US$ No. of shares US$ Issued and fully paid: At the beginning of the period/year 193,113,866 86,852,748 179,227,712 81,254,153 Issue of ordinary shares 1,255,785 519,500 13,846,154 5,816,986 Exercise of share rights to ordinary shares (Note 15) - - 40,000 38,466 194,369,651 87,372,248 193,113,866 87,109,605 Cost of issuing capital - - - (256,857) At the end of the period/year 194,369,651 87,372,248 193,113,866 86,852,748
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Conrad Asia Energy Ltd. Page 27 of 40 Interim Report | 30 June 2026 14(a) Profit/(Loss) Per Share Basic profit/(loss) per share is calculated by dividing the Group’s net results attributable to ordinary equity holders for the financial period by the weighted average number of ordinary shares issued. 30 June 30 June 2026 2025 Profit/(loss) attributable to the owners of the Company (US$) 8,586,456 (2,401,484) Weighted average number of ordinary shares issued - Basic 193,338,489 182,036,551 - Diluted 199,502,683 182,036,551 Loss per ordinary share (US$) - Basic 0.04 (0.01) - Diluted 0.04 (0.01) Basic profit/(loss) per share is calculated by dividing the consolidated profit/(loss) after tax attributable to the equity holders of the Company, by the weighted average number of ordinary shares outstanding during the financial period. For the financial period ended 30 June 2026, diluted earnings per share includes the impact of ordinary shares issuable under the Conrad Incentive Plan and outstanding warrants. For the financial period ended 30 June 2025, these instruments were excluded from the calculation of diluted loss per share as they were anti-dilutive. 15. Employee Benefits Reserve The Conrad Incentive Plan for key management personnel and employees of the Group was approved and adopted by shareholders through the shareholders’ resolution in writing on 23 May 2022. Share rights i) Vesting conditions Vesting conditions of share rights are not the same, depending on the recipient. There are five (5) different sets of vesting conditions in total. Vesting conditions set 1: a) on 25 September 2023, which is 1 year from the date of grant of the share rights; or b) 100% at such time as Conrad farms down or sells down to a Participating Interest of 20% or less in the Duyung Production Sharing Contract. Vesting conditions set 2: a) on 25 September 2024, which is 2 years from the date of grant of the share rights.
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Conrad Asia Energy Ltd. Page 28 of 40 Interim Report | 30 June 2026 15. Employee Benefits Reserve (cont’d) Share rights (cont’d) Vesting conditions set 3: a) in four equal tranches annually over 4 years from grant date; or b) 100% at such time as Conrad farms down or sells down to a Participating Interest of 20% or less in the Duyung Production Sharing Contract. Vesting conditions set 4: a) on 25 September 2024, which is 2 years from the date of grant of the share rights; or b) 100% at such time as Conrad farms down or sells down to a Participating Interest of 20% or less in the Duyung Production Sharing Contract. Vesting conditions set 5: a) in three equal tranches annually over 3 years from the date of grant of the share rights. ii) Expiration The share rights will lapse and expire if the vesting conditions are not met. iii) Dealing restrictions The holders of share rights agree to not deal with the share rights issued to them on the vesting of those share rights prior to the release from any relevant voluntary or mandatory escrow arrangements entered into by the holders. iv) Quotation The share rights will not be quoted on the ASX or any other securities exchange. v) Rights associated with share rights The share rights do not carry any dividend or voting rights (except as required by law). The share rights do not permit the holder to: a) Participate in a return of capital, whether in a winding up, upon a reduction of capital or otherwise; or b) Participate in new issue of capital such as bonus issue and entitlement issue. The share rights do not carry any entitlement to participate in the surplus profit or asset of the Company upon winding up of the Company.
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Conrad Asia Energy Ltd. Page 29 of 40 Interim Report | 30 June 2026 15. Employee Benefits Reserve (cont’d) Share rights (cont’d) vi) Transfer restrictions The share rights are not transferable, except to the estate of the holder on the death, permanent disability or permanent incapacitation of the holder. vii) Adjustment of share rights The share rights may be adjusted in accordance with the Conrad Incentive Plan. viii) Cessation of employment/office or termination of services The following table outlines the treatment of share rights should the share rights holder cease employment with the Company or their office/appointment with the Company is terminated or they cease providing services to Conrad, unless the Board in its discretion determines otherwise: Time of cessation Good leaver Bad leaver Prior to vesting Holder will be entitled to have the vesting of their share rights accelerated and vest on cessation of employment or termination of office/appointment/services. Unvested share rights will lapse. After vesting and delivery of shares/CDIs Holder will continue to hold the shares/CDIs that have been delivered to them. (resignation) Holder will continue to hold the shares/CDIs that have been delivered to them. (for cause) Unvested share rights will lapse and shares/CDIs delivered to them on vesting of their share rights will be forfeited and bought back by Conrad. ix) Share rights on share of control If a change of control event occurs in relation to the Company (for example, a takeover bid, scheme of arrangement, merger or any other transaction or event that in the Board’s opinion is a change of control event in relation to the Company), the Board may (amongst other things): a. waive any vesting condition; and/or b. determine that any vesting condition is satisfied, in accordance with the Conrad Incentive Plan.
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Conrad Asia Energy Ltd. Page 30 of 40 Interim Report | 30 June 2026 15. Employee Benefits Reserve (cont’d) Share rights (cont’d x) Clawback Under the Conrad Incentive Plan, the Board may make a determination in its discretion on how the share rights will be treated, such as deeming the share rights to have lapsed or forfeited, where (without limitation), in the opinion of the Boar d: a. the holder has acted fraudulently or dishonestly; b. the holder has engaged in, or was involved in, serious misconduct; c. the holder has breached their duties, responsibilities or obligations to the Company; d. the holder has done an act which brings the Company into disrepute; e. where there has been a material misstatement or omission in the financial statements of the Company; f. there occurs a catastrophic environmental or safety event (including the occurrence of any fatalities) caused by, contributed to or in respect of the Company, its operations or personnel, or other event which leads to a significant adverse impact on the reputation of the Company or its operations; or g. there occurs any other circumstance, which the Board has determined in good faith provides grounds for the Board to exercise its discretion for the treatment of the holder’s share rights. In circumstances of clawback the Board may, without limitation, require shares, received in connection with share rights to be forfeited or paid as directed by the Board under the Conrad Incentive Plan. xi) Tax deferral under tax legislation The Conrad Incentive Plan is a plan to which Subdivision 83A-C of the Income Tax Assessment Act 1997 is intended to apply (subject to the conditions in that Act). Options Vesting conditions of options are not the same, depending on the recipient. There are three (3) different sets of vesting conditions in total. Vesting conditions set 1: a) in three equal tranches annually over 3 years from grant date; or b) 100% at such time as Conrad farms down or sells down to a Participating Interest of 20% or less in the Duyung Production Sharing Contract. Vesting conditions set 2: a) on 25 September 2023, which is 1 year from the date of grant of the options; or b) 100% at such time as Conrad farms down or sells down to a Participating Interest of 20% or less in the Duyung Production Sharing Contract. Vesting conditions set 3: a) on 25 September 2024, which is 2 years from the date of grant of the options and only once the following performance-based vesting conditions being met: • one-third of the options will vest through Conrad (or through West Natuna Exploration Limited (“WNEL”)) signing a binding gas sales agreement in respect of the Mako project. • one-third of the options will vest upon the final investment decision in respect of the Mako project. • one-third of the options will vest upon first production of gas from Mako Gas Field and supplied at the daily contract quality specified in any gas sales agreement executed by Conrad. The options will expire at 5.00 pm (Singapore time) on 25 September 2027, the date which is the fifth anniversary of the grant date.
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Conrad Asia Energy Ltd. Page 31 of 40 Interim Report | 30 June 2026 15. Employee Benefits Reserve (cont’d) Options (cont’d) The details of outstanding share rights and options to subscribe for ordinary shares of the Group pursuant to the Conrad Incentive Plan are as follows: Date of grant Exercise price Balance at the beginning of the financial period Number of share rights (lapsed)/granted during the financial period Number of share rights exercised during the financial period Number of share rights outstanding as at the end of the financial period 25.09.2022 - 40,000 - - 40,000 Date of grant Exercise price Balance at the beginning of the financial period Number of options (lapsed)/granted during the financial period Number of options vested during the financial period Number of unvested options outstanding as at the end of the financial period 25.09.2022 US$0.81 533,334 - - 533,334 Fair value of share rights and options awarded The fair value of each share granted under the Employee Incentive Plan at the date of grant is based on the share price of the Company given that the Company’s shares are publicly traded on the ASX. The fair value of the share rights and options granted to key management personnel and employees is deemed to represent the value of the employee services received over the vesting period. 16. Other Payables 30 June 31 December 2026 2025 US$ US$ Other payables 9,879,492 364,164 Accrued expenses 8,208,454 1,007,146 18,087,946 1,371,310 Accrued expenses mainly comprise exploration costs relating to the appraisal wells, accruals for oil and gas assets under development, and employee severance pension obligations. Included in other payables is US$5 million received from PT Nations Natuna Barat (“NNB”), representing the first tranche of the cash consideration receivable under the conditional sale and purchase agreement for the transfer of a 75% participating interest in the Duyung PSC. As at 30 June 2026, the transfer had not completed, as the remaining regulatory approvals and transfer steps had not been satisfied. Accordingly, the amount received has been recognised as a liability pending completion of the transaction.
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Conrad Asia Energy Ltd. Page 32 of 40 Interim Report | 30 June 2026 17. Warrants 30 June 31 December 2026 2025 US$ US$ Warrants, at the beginning of the period/year 55,508 582,154 Fair value change during the period/year (55,508) (526,646) Warrants, at the end of the period/year - 55,508 Following the expiry of all outstanding warrants on 14 June 2026, no warrant liability remained outstanding as at 30 June 2026. The fair value movement recognised during the current financial period reflects the remeasurement of the warrant liability up to the date of expiry. 18. Significant Related Party Transactions In addition to the related party information disclosed elsewhere in the financial statements, the following significant transactions with related parties on terms mutually agreed during the financial period are as follows: 30 June 30 June 2026 2025 US$ US$ Compensation of key management personnel Directors’ remuneration 240,000 240,000 Directors’ fees 199,500 175,500 Staff benefits 13,011 13,038 Fees for professional services* 180,000 218,216 * Fees received or receivable by a firm in which the director is a member or with a company in which the director has a substantial financial interest for professional services rendered to the Company or management and other fees for the period end. 19. Borrowings 30 June 31 December 2026 2025 US$ US$ Non-current Borrowings 39,093,350 7,292,606 On 14 November 2025, the Group’s subsidiary, West Natuna Exploration Limited, entered into a Carry Loan Agreement with NNB, under which the lender provides a loan facility to the borrower, funded through a financing facility obtained by the lender from PT. Bank Negara Indonesia (Persero) Tbk (“BNI”) in relation to the Duyung PSC. The loan bears interest at a variable rate comprising the 90- day average Secured Overnight Financing Rate (“SOFR”) plus a margin of 5.25% per annum. Repayment of the loan is aligned with the repayment schedule of the underlying BNI facility obtained by the lender and may be subject to earlier repayment in certain circumstances as specified in the agreement. The facility is supported by a parent company guarantee provided by the Company pursuant to a guarantee dated 12 January 2026. The proceeds of the facility are used in connection with the Group’s participation in the Duyung PSC. As at 30 June 2026, the borrowing is presented as a non -current liability as repayment of the facility is aligned with the repayment schedule of the underlying BNI financing facility, which extends beyond twelve months from the reporting date.
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Conrad Asia Energy Ltd. Page 33 of 40 Interim Report | 30 June 2026 20. Lease Liabilities The Group as Lessee The Group entered into lease contracts for its office premises. The Group has the option to terminate the lease contract but is unlikely to exercise the option. The right-of-use asset is recognised within plant and equipment (Note 7). The effective interest rate used is between 5.25% and 10.03%. During the current financial period, the Group extended the lease for office premises in Singapore and Indonesia by 2 years. (a) Carrying amount of right-of-use asset classified within plant and equipment 30 June 31 December 2026 2025 US$ US$ Leased building 342,833 103,834 (b) Amounts recognised in profit or loss 30 June 30 June 2026 2025 US$ US$ Depreciation of right-of-use asset 104,788 100,070 Interest expense on lease liabilities (Note 5) 4,909 6,664 Total amount recognised in profit or loss 109,697 106,734 (c) Other disclosures 30 June 30 June 2026 2025 US$ US$ Total cash outflow for leases 116,673 119,590 (d) Carrying amount of lease liabilities 30 June 31 December 2026 2025 US$ US$ Minimum lease payments due: - Not later than 1 year 197,565 121,818 - Later than 1 year but within 5 years 168,234 - 365,799 121,818 Less: Future finance charges (23,037) (2,659) Present value of financial lease liabilities 342,762 119,159 The present value of lease liabilities is analysed as follows: 30 June 31 December 2026 2025 US$ US$ Not later than 1 year 180,080 119,159 Later than 1 year but within 5 years 162,682 - 342,762 119,159
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Conrad Asia Energy Ltd. Page 34 of 40 Interim Report | 30 June 2026 21. Fair Value Measurements Fair value is defined as the amount at which the financial instruments could be exchanged in a current transaction between knowledgeable willing parties in an arm’s length transaction, other than in a forced or liquidation sale. Fair values are obtained from quoted prices, discounted cash flow models and option pricing models as appropriate. The Group presents financial assets measured at fair value and classified by level of the following fair value measurement hierarchy: a. Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities; b. Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is as prices) or indirectly (i.e. derived from prices); and c. Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). Level 1 Level 2 Level 3 Total US$ US$ US$ US$ 30 June 2026 Financial asset at fair value through profit or loss 25,465 - - 25,465 31 December 2025 Financial asset at fair value through profit or loss 3,008 - - 3,008 Warrants - - 55,508 55,508 Fair value is defined as the amount at which the financial instruments could be exchanged in a current transaction between knowledgeable willing parties in an arm’s length transaction. There has been no transfer of financial instruments between levels during the financial period. The Group has an established control framework for measuring fair values. This framework includes a third -party valuation team that the Group engages at least annually. The management of the Group has the overall responsibility for all significant fair value measurements, including Level 3 fair values. Fair Value of the Group’s financial assets and financial liabilities that are not measured at fair value on a recurring basis . The carrying amounts of financial assets and liabilities with a maturity of less than one year approximate their fair values due to the relatively short-term maturity of these financial instruments. The fair value of the non-current lease liabilities is determined by discounted expected cash flows. The discount rate used is based on the market rate for similar instruments as at the statement of financial position date. The carrying amount of the Group's borrowings approximates their fair value as the borrowings bear variable market interest rates. 22. Subsequent Events On 23 July 2026, the Company received confirmation from MEMR approving the transfer of Empyrean Energy PLC’s 8.5% participating interest in the Duyung PSC to the Group’s subsidiary WNEL. On 27 August 2026, the Company received confirmation from MEMR approving the transfer of a 75% participating interest in the Duyung PSC from the Group’s subsidiary WNEL to NNB, pursuant to the farm -down arrangement.
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Conrad Asia Energy Ltd. Page 35 of 40 Interim Report | 30 June 2026 Directors’ Statement The directors present their statement to the shareholders together with the condensed interim consolidated financial statements of Conrad Asia Energy Ltd (the “Company”) and its subsidiaries (collectively the “Group”) for the six-month financial period ended 30 June 2026. In the opinion of the directors, (a) the condensed interim consolidated financial statements of the Group are drawn up so as to give a true and fair view of the financial position of the Group as at 30 June 2026, and of the financial performance, changes in equity and cash flows of the Group for the period ended on that date; and (b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. 1. Directors The directors in office at the date of this statement are: Peter Botten (Executive Chairman) Miltiadis Xynogalas (Executive Director) David Johnson (Executive Director and COO) Paul Bernard (Non-Executive Director) Jeremy Brest (Non-Executive Director) Mario Traviati (Non-Executive Director) 2. Arrangements to Enable the Directors to Acquire Shares or Debentures Neither at the end of nor at any time during the financial period was, the Company a party to any arrangement whose object was to enable the directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate, other than as disclosed under “Share Rights and Options” in this report.
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Conrad Asia Energy Ltd. Page 36 of 40 Interim Report | 30 June 2026 3. Directors’ Interests in Shares or Debentures According to the register kept by the Company for the purposes of Section 164 of the Companies Act 1967, the following directors who held office at the end of the financial period were interested in shares, warrants and vested share options of the Company as follows: Holdings registered in the name of director Holdings in which a director is deemed to have an interest Name of Directors At 01.01.2026 At 30.06.2026 At 01.01.2026 At 30.06.2026 No. of ordinary shares, warrants and vested share options The Company Peter Botten 833,847 833,847 680,134 680,134 Miltiadis Xynogalas 2,090,276 1,954,892 14,400,000 14,400,000 David Johnson 1,143,379 1,143,379 693,333 693,333 Paul Bernard 1,015,426 1,200,516 6,275,650 5,632,202 Jeremy Brest 1,415,385 1,600,475 5,888,791 5,293,239 Mario Traviati 10,129,154 9,641,834 3,824,590 3,345,176 Except as disclosed in this report, no Director who held office at the end of the financial period had interests in shares, s hare options, warrants or debentures of the Company, or of related corporations, either at the beginning of the financial period, or date of appointment, if later or at the end of the financial period. 4. Share Options The Conrad Incentive Plan for key management personnel and employees of the Group was approved and adopted by shareholders through the shareholders’ resolution in writing on 23 May 2022. The information on the directors of the Company participating in the Incentive Plan is as follows: Number of unvested options held Name of Directors At 01.01.2026 At 30.06.2026 Peter Botten - - Miltiadis Xynogalas 266,667 266,667 David Johnson 266,667 266,667 Paul Bernard - - Jeremy Brest - - Mario Traviati - - Options Vesting conditions of options are not the same, depending on the recipient. There are three (3) different sets of vesting conditions in total. Vesting conditions set 1: a) in three equal tranches annually over 3 years from grant date; or b) 100% at such time as Conrad farms down or sells down to a Participating Interest of 20% or less in the Duyung Production Sharing Contract.
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Conrad Asia Energy Ltd. Page 37 of 40 Interim Report | 30 June 2026 4. Share Options (cont’d) Vest ing conditions set 2: a) on 25 September 2023, which is 1 year from the date of grant of the options; or b) 100% at such time as Conrad farms down or sells down to a Participating Interest of 20% or less in the Duyung Production Sharing Contract. Vest ing conditions set 3: a) on 25 September 2024, which is 2 years from the date of grant of the options and only once the following performance - based vesting conditions being met: • one-thi rd of the options will vest through Conrad (or through West Natuna Exploration Limited (“WNEL”)) signing a binding gas sales agreement in respect of the Mako project. • one-third of the options will vest upon the final investment decision in respect of the Mako project. • one-third of the options will vest upon first production of gas from Mako Gas Field and supplied at the daily contract quality specified in any gas sales agreement executed by Conrad. The options will expire at 5.00 pm (Singapore time) on 25 September 2027, the date which is the fifth anniversary of the grant date. The de tails of outstanding share options to subscribe for ordinary shares of the Group pursuant to the Conrad Incentive Plan are as follows: Date of grant Exercise price Balance at the beginning of the financial period Number of options (lapsed)/granted during the financial period Number of options vested during the financial period Number of unvested options outstanding as at the end of the financial period 25.09.2022 US$0.81 533,334 - - 533,334 On b ehalf of the Board of Directors, ……… ……………….……………….. Miltiadis Xynogalas ……… ……………….……………….. David Antony Johnson Singa pore 11 Sept ember 2026
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Conrad Asia Energy Ltd. Page 38 of 40 Interim Report | 30 June 2026 Independent Auditor’s Review Report
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Conrad Asia Energy Ltd. Page 39 of 40 Interim Report | 30 June 2026 About Conrad and its Projects Conrad is an Asia- focused natural gas exploration & production company concentrated on the shallow waters offshore Indonesia, and via its wholly owned subsidiaries, is the holder of several operated tenements in the form of Production Sharing Contracts. The Company’s flagship project is the Mako Gas Field located in the Natuna Sea in the shallow offshore waters of Indonesia. The Mako gas field is one of the largest gas discoveries in the region. The Company specialises in the identification and acquisition of undervalued, overlooked, and/or technically misunderstood gas assets, and has developed expertise in maturing such assets through subsurface technical work, appraisal drilling and an innovative approach to low-cost field development. The Board and management have a proven track record of value creation and deep industry experience with oil majors, mid - cap E&P and the upstream investment community, together with a successful track record of bringing exploration and development projects into production, with Peter Botten the founder and Chairman of Oil Search adding enormous depth and experience as Chairman of Conrad. Notes on Petroleum Resource Estimates The estimates of Contingent and Prospective Resources included in this presentation have been prepared in accordance with the definitions and guidelines set forth in the SPE -PRMS. Conrad is not aware of any new information or data that materially affects the information included in this presentation, and that all material assumptions and technical parameters underpinning the estimates in this presentation continue to apply and have not materially changed. Deterministic and probabilistic methods have been used to prepare the estimates of C ontingent & Prospective R esources. These resources have been aggregated by arithmetic summation and hence the aggregate 1C may be a very conservative estimate, and the 3C may be a very optimistic estimate, due to the portfolio effects of arithmetic summation. Prospective resources have been reported using the best estimate. Prospects and leads are made up of multiple potential reservoir horizons and these are “ rolled-up“ statistically into a single P rospective Resource. These P rospective Resources are statistically aggregated up to the field level and arithmetically summed to the project level. There are numerous uncertainties inherent in estimating reserves and resources, and in projecting future production, development expenditures, operating expenses and cash flows. Oil and gas reserve engineering and resource assessment are subjective processes of estimating subsurface accumulations of oil and gas that cannot be measured in an exact way. Conversion from gas to barrels of oil equivalent is based a constant conversion factor of 5.8 Bcf/MMboe. Cautionary Statement The estimated quantities of gas that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially recoverable hydrocarbons. Qualified Petroleum Reserves and Resources Evaluator Statement The resource estimates in this document are based on, and fairly represent, information and supporting documents prepared by, or under the supervision of David A. Johnson, who is employed fulltime by Conrad Asia Energy Limited as C hief Operating Officer. He holds a BSc (Honours) in Geology, has been practicing as a Petroleum Geoscientist for 45 plus years. He is a member of the Society of Petroleum Engineers ( “SPE“). Mr. Johnson is qualified in accordance with ASX L isting Rule 5.41 and has consented in writing to the inclusion of the information in the form and context, in which it appears.
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Conrad Asia Energy Ltd. Page 40 of 40 Interim Report | 30 June 2026 Forward Looking Statements This document has been prepared by Conrad Asia Energy Ltd (the Company). This report contains certain statements which may constitute “forward-looking statements“. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including, but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve and resource estimates, loss of market, industry competition, environmental ris ks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delays or advancements, approvals and cost estimates. The operations and activities are subject to joint venture, regulatory and other approvals and their timing and order may also be affected by weather, availability of equipment and materials and land access arrangements. Although Conrad believes that the expectations raised in this report are reasonable there can be no certainty that the events or operations described in this report will occur in the timeframe or order presented or at all. There are numerous uncertainties inherent in estimating reserves and resources, and in projecting future production, development expenditures, operating expenses and cash flows. Oil and gas reserve engineering and resource assessment must be recognised as a subjective process of estimating subsurface accumulations of oil and gas that cannot be measured in an exact way. No representation or warranty, expressed or implied, is made by Conrad or any other person that the material contained in this report will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Conrad, its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this report and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence if any information in this report or any error or omission there from. Neither Conrad nor any other person accepts any responsibility to update any person regarding any inaccuracy, omission or change in information in this report or any other information made available to a person nor any obligation to furnish the person with any further information. All references to $ or US$ are in United States dollars unless stated otherwise.