Earnings release
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Highlights Cashflow, production and development progress 1 > Record FY26 production and sales of 2.15 MMboe and 1.98 MMboe, up 33% and 22% on FY25, driven by the Thailand acquisition in August 2025 and excluding any contribution from the Cue acquisition > Quarterly production was steady at 541,811 boe, while higher oil prices and sales volumes of 545,883 boe delivered increased revenues of US$34.7 million (net of hedging) and net operating cash flow2 of US$23.6 million > Cash reserves of US$37.4 million at 30 June 2026 following ~US$8 million in debt repayments, the interim dividend of US$17 million paid in April, and Cue cash acquisition costs paid of US$13 million. Net debt3 position at 30 June 2026 of US$11.3 million > A commodity hedge position remains in place, with 180,000 bbls hedged at a n average price of ~US$77/bbl through December 2026 > Development activities progressed across the portfolio, with multiple production enhancement and development projects scheduled to deliver growth over the next six months Completion of Cue Energy Resources Limited (Cue) Off-Market Takeover5 > Horizon completed its off-market takeover of Cue on 2 July 2026, securing a controlling interest of 57.03% > The acquisition increases Horizon’s scale, production, reserves and geographic diversity across five countries and nine producing fields > Combined production increases by approximately 15% to 7,3006 boepd and net 2P reserves by more than 20% to approximately 15.357 MMboe > Cue adds near -term development, appraisal and exploration opportunities across Australia and Indonesia, with activities underway at Palm Valley, Mahato and Sampang > Horizon's record FY26 production, sales and cash flow performance was delivered before any contribution from Cue, providing a platform for further growth in FY27 1. All reported numbers for Thailand in this report represent Horizon’s effective working interest in the assets since the compl etion date of 1 August 2025 - 7.5% of Sinphuhorm and 60% of Nam Phong. Horizon holds these interests via its 75% shareholding in MH Energy Thailand Pty Limited (MHET) which will be equity accounted as an investment for financial reporting purposes. 2. Net operating cashflow represents total revenue less direct production operating expenditure (excluding royalties/levies and including workover costs). 3. Net debt/cash is non-IFRS financial information and represents cash on hand minus the nominal value of debt outstanding. This metric is widely used in the oil and gas industry. 4. Financial results contained in this quarterly are unaudited. 5. Acquisition of 57.03% controlling interest in Cue completed on 2 July 2026, with effective control passing immediately prior to 30 June 2026. Accordingly, Horizon will consolidate Cue for financial reporting purposes at 30 June 2 026, with share of revenues and costs immaterial for FY26 reporting and accordingly excluded from this quarterly. Cue’s share of cash at 30 June 2026 was ~US$ 11m and is included in the above figures. An update on the activities of Cue’s assets is included within this quarterly release. 6. Horizon’s share of Cue’s production is calculated based on Horizon’s controlling interest (57.03%) in Cue as at 3 July 2026. 7. Combined Horizon and Horizon’s share of Cue reserves, resources and production at 30 June 2025, including Thailand on a pro forma basis. Horizon’s share of Cue’s reserves, resources and production is calculated based on Horizon’s controlling interest (57.03%) in Cue as at 3 July 2026.
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QUARTERLY REPORT | Period ending 30 June 2026 CHIEF EXECUTIVE OFFICER’S COMMENTARY FY26 was a transformational year for Horizon. We delivered record production and sales volumes, established Thailand as a material and low -cost contributor to Group cash flow, maintained a strong balance sheet, and completed the off -market takeover of Cue Energy Resources Limited , while continuing to deliver substantial distributions to shareholders. This performance is particularly important against the current global energy backdrop. Conflict in the Middle East and constraints on traffic through the Strait of Hormuz ha ve reinforced how exposed energy markets remain to geopolitical disruption. In that environment, reliable regional production and secure energy supply have strategic value beyond their immediate financial contribution. Horizon’s portfolio is well positioned in this setting. Our assets are located across South-East Asia and Australasia, close to end markets that value reliable supply and energy security. The Company’s oil production and oil- linked gas pricing provide exposure to stronger commodity markets, while our gas assets continue to support domestic and regional demand. Thailand was central to the step -change in Horizon’s FY26 performance. Sinphuhorm and Nam Phong have quickly become meaningful contributors to Group production, revenue and cash flow, supported by low operating costs and oil- linked gas pricing. The assets provide domestic gas into a growing domestic market, with near- term projects at both fields expected to support higher and more sustainable deliverability. Operationally, the quarter demonstrated the benefit of portfolio diversity and a balanced mix of oil and gas assets . Production improved at both Beibu and Maari following successful well optimisation and workover activities, while Thailand continued to deliver strong cash flow growth supported by oil- linked gas pricing. Although production at Mereenie was impacted by a planned maintenance shutdown, stronger sales volumes, higher realised commodity prices and disciplined cost control supported another quarter of robust operating cash flow. The Company maintained disciplined cost control and generated strong operating cash flow, while continuing to invest selectively in projects aimed at improving reliability, extending asset life and supporting near -term production growth. Capital discipline remained a key focus, with over US$38 million deployed during the quarter across shareholder distributions, debt repayments, and both organic and inorganic growth initiatives. While hedge losses were realised during the period, Horizon's hedging program performed its intended role by pro viding cashflow certainty and downside protection, underpinning the balance sheet strength and financial flexibility required to execute these significant capital allocation decisions with confidence. The completion of Horizon’s off-market takeover of Cue at the end of the quarter is another significant milestone. The acquisition increases Horizon’s scale, broadens the production base and adds a series of near -term development and appraisal opportunities across Australia and Indonesia. It also deepens Horizon’s exposure to assets we know well, namely Maari and Mereenie, while adding further growth optionality through Palm Valley, Mahato and Sampang. Importantly, the record FY26 result stands on Horizon’s pre -Cue portfolio. The Cue acquisition therefore represents an additional platform for growth rather than the driver of the year’s record outcome. As we move into FY27, the enlarged Group has greater scale, a broader reserve and production base, and a diversified pipeline of projects across five countries – Australia, New Zealand, China, Thailand and Indonesia. The current market environment is a reminder of the importance of disciplined capital allocation and reliable operations. Horizon’s focus remains on operating safely, maintaining financial discipline, progressing high- return development opportunities and building a stronger regional energy business. FY26 has materially advanced that strategy, and the completion of the Cue acquisition provides a stronger platform from which to continue creating value for shareholders. Richard Beament Chief Executive Officer
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COMPARATIVE PERFORMANCE Period ending 30 June 2026 Notes: a. Financial results contained in this quarterly are unaudited. b. Statements contained in this report, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Horizon, industry growth or other trend projections a nd any estimated company earnings are or may be forward looking statements. Such statements relate to future events and expectations and as such involve known and unknown risks and uncertainties. Actual results, actions and developments may differ materia lly from those expressed or implied by these forward -looking statements depending on a variety of factors. 1 excluding workover and royalty/levies expenditures 23 31 20 25 23 22 32 30 13 12 11 14 6 8 6 8 - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 US$/boe Beibu Maari Mereenie Thailand Blended Oil & gas production (boe) Oil & gas sales1 (boe) Revenue1,2 (US$m) Operating expenditure1 (US$/boe) Operating cash flow1 (US$m) Net (debt)/cash (US$m) 1 Operating cash flow represents cash in-flows from revenue less operating expenditure 1 excluding hedge settlements 2 no Maari lifting in Q3 FY26. 1 Cash receipts generally have a one-month lag from the point of revenue recognition. 2 Quarterly China income tax and special oil gain levy, Maari quarterly income tax and royalty payment. 1 no Maari lifting in Q3 FY26. 135,165 140,563 95,011 153,105 132,067 133,662 - 117,813 113,654 103,662 108,114 104,179 104,027 188,996 179,656 170,787 - 100,000 200,000 300,000 400,000 500,000 600,000 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Beibu Maari Mereenie Thailand 146,768 151,706 158,873 164,892 128,550 130,780 88,352 99,175 109,479 103,873 113,059 103,778 105,360 192,032 182,699 173,967 - 100,000 200,000 300,000 400,000 500,000 600,000 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Beibu Maari Mereenie Thailand 9 9 6 18 10 9 - 14 5 4 5 5 4 6 6 7 35.0 45.0 55.0 65.0 75.0 85.0 - 10.0 20.0 30.0 40.0 50.0 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 US$/boe US$'M Beibu Maari Mereenie Thailand Net realised sales price 17 16 6 24 - 5.0 10.0 15.0 20.0 25.0 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 US$m 3 28 (13) (9) (2) (1) (17) (11) Net cash 31 Mar 26 Revenue receipts (1) Operating, insurance & corporate costs Taxes, levies, royalties & interest paid (2) Capex Cue acquisition related costs net of Cue cash Dividend paid Net debt 30 June 26
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FINANCIAL SUMMARY OIL & GAS PRODUCTION AND SALES Q4 FY26 Boe3 Q3 FY26 Boe3 Change % FY26 Boe3 Block 22/12 (Beibu Gulf), Offshore China Crude oil production (NW)1 164,892 158,873 3.8% 622,240 Crude oil inventory on hand 53,421 56,028 (4.7%) 53,421 Crude oil sales 153,105 95,011 61.1% 523,843 PMP 38160 (Maari & Manaia), Offshore New Zealand Crude oil production (NW)1 99,175 88,352 12.2% 446,857 Crude oil inventory on hand 81,358 103,656 (21.5%) 81,358 Crude oil sales 117,813 - 100% 383,542 OL4 and OL5, Mereenie, Onshore Australia3 Crude oil and gas production (NW)1 103,778 113,059 (8.2%) 430,190 Crude oil inventory on hand 2,828 3,634 (22.2%) 2,828 Crude oil and gas sales 104,179 108,114 (3.6%) 429,614 Sinphuhorm & Nam Phong, Onshore Thailand3,4 Crude oil and gas production 173,967 182,699 (4.8%) 654,328 Crude oil and gas sales 170,787 179,656 (4.9%) 643,465 TOTAL OIL AND GAS PRODUCTION AND SALES OIL AND GAS PRODUCTION 541,811 542,983 (0.2%) 2,153,615 OIL AND GAS SALES 545,883 382,781 42.6% 1,980,464 Notes: 1. Production amounts are shown on a net working interest basis (NWI). 2. Amounts may not cast due to the rounding of balances. 3. References to BOE refers to barrels of oil equivalent where liquids are equal to the total of oil, condensate and natural gas liquids where 1 barrel of condensate or natural gas liquids equals 1 barrel of oil. Gas reserves have been converted to oil equivalent using 5.816 PJ equals one million barrels of oil equivalent. 4. All reported numbers for Thailand in this report represent Horizon’s effective working interest in the assets since the completion date of 1 August 2025 - 7.5% of Sinphuhorm and 60% of Nam Phong. Horizon holds these interests via its 75% shareholding in MH Energy Thailand Pty Limited (MHET) which will be equity accounted as an investment for financial reporting purposes. 5. Cue acquisition completed on 2 July 2026, with effective control passing immediately prior to 30 June 2026. Accordingly, Horizon will consolidate Cue for financial reporting purposes at 30 June 2026, with share of revenues and costs immaterial for FY26 reporting and acco rdingly excluded from this quarterly. Cue’s share of cash at 30 June 2 026 was ~ US$11m and is included in the above figures. An update on the activities of Cue’s assets is included within this quarterly release.
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FINANCIAL SUMMARY PRODUCING OIL AND GAS PROPERTIES Q4 FY26 US$‘000 Q3 FY26 US$‘000 Change % FY26 US$‘000 Block 22/12 (Beibu Gulf), Offshore China Production revenue1 17,701 6,421 >100% 41,564 Operating expenditure 4,147 3,281 26.4% 15,453 Workovers 164 956 (82.8%) 2,108 Special oil gain levy 2,822 84 >100% 2,983 Inventory adjustments2 (19) (2,264) (99.2%) (2,283) PMP 38160 (Maari & Manaia), Offshore New Zealand Production revenue1 14,192 - 100% 32,717 Operating expenditure 2,943 2,822 4.3% 11,603 Workovers 973 463 >100% 2,331 Inventory adjustments2 1,715 (6,151) (>100%) (3,415) OL4 and OL5, Mereenie, Onshore Australia Production revenue 4,500 4,615 (2.5%) 17,590 Operating expenditure (excluding royalty) 1,428 1,276 11.9% 5,325 Sinphuhorm & Nam Phong, Onshore Thailand5 Production revenue 7,251 6,150 17.9% 23,005 Operating expenditure (excluding royalty) 1,425 1,026 38.9% 4,604 TOTAL PRODUCING OIL AND GAS PROPERTIES Production Revenue 43,644 17,186 >100% 114,875 Oil hedging settlements (8,924) (1,448) >100% (10,175) Total Revenue (incl. hedging settlements) 34,720 15,739 >100% 104,700 Direct production operating expenditure (excludes royalties/levies) 11,080 9,824 12.8% 41,424 Net Operating Cash Flow3 23,640 5,915 >100% 63,276 DEVELOPMENT EXPENDITURES4 PMP 38160 (Maari & Manaia), New Zealand 756 1,358 2,732 Block 22/12 (Beibu Gulf), offshore China 27 - 1,159 OL4 & OL5, (Mereenie), onshore Australia 457 140 886 Sinphuhorm & Nam Phong, onshore Thailand5 - - - Total capital expenditure 1,240 1,498 4,777 LIQUIDITY Cash on hand6 37,400 59,406 37,400 Debt facility7 (48,683) (56,130) (48,683) NET CASH/(DEBT)8 (11,283) 3,276 (11,283) Notes: 1. Represents gross revenue excluding hedge gains and losses. 2. Represents an accounting adjustment for cost of crude oil inventory sold or produced during the period. 3. Represents total revenue less direct production operating expenditure (excluding royalties/levies and including workover costs). 4. No exploration activities were undertaken during the quarter. 5. All reported numbers for Thailand in this report represent Horizon’s effective working interest in the assets since the compl etion date of 1 August 2025 - 7.5% of Sinphuhorm and 60% of Nam Phong. Horizon holds these interests via its 75% shareholding in MH Energy Thailand Pty Limited (MHET) which will be equity accounted as an investment for financial reporting purposes. 6. Cue acquisition completed on 2 July 2026, with effective control passing immediately prior to 30 June 2026. Accordingly, Horizon will consolidate Cue for financial reporting purposes at 30 June 2026, with share of revenues and costs immaterial for FY26 reporting and accordingly excluded from this quarterly. Cue’s share of cash at 30 June 2026 was ~US$11m and is included in the above figures. An update on the activities of Cue’s assets is included within this quarterly release. 7. Represents principal amounts drawn down at 30 June 2026, translated into USD at the period end spot exchange rate. 8. Net debt/cash is non-IFRS financial information and represents cash on hand minus debt. This metric is widely used in the oil and gas industry. 9. Amounts may not cast due to the rounding of balances.
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Gross oil production averaged 6,724 bopd during the quarter (1,812 bopd net to Horizon), up 3.8% on the previous quarter. Improved production performance reflected targeted well optimisation activities, increased water - handling capacity and the ongoing benefits of workovers completed earlier in the year. Net oil sales totalled 153,105 bbls, generating revenue of US$17.7 million. Cash operating costs remained low at approximately US$25/bbl produced, excluding workover costs. Water injection performance at WZ12 -8E remained strong following the A7 water injector workover completed in the previous quarter, supporting reservoir pressure maintenance and stable field production. A further workover campaign at WZ6- 12 is scheduled to commence during the current quarter to support future production performance. Feasibility studies for a potential further development phase at WZ12 -8E continued during the quarter.
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Gross production averaged 4,192 bopd during the quarter (approximately 1,090 bopd net to Horizon), an 11% increase on the previous quarter following the successful MN1 workover and the return of the well to production in early May. Field production exceede d 5,000 bopd before production from the MR3 well was interrupted by a downhole pump failure. Cash operating costs averaged approximately US$30 /bbl produced. An offtake completed during the quarter delivered 117,813 bbl net to Horizon, generating revenue of US$14.2 million. During the quarter, the MR3 well was shut in and is currently undergoing a workover to replace the downhole pump and restore production. Additionally, the Joint Venture continued subsurface and drilling studies aimed at maturing a potential future Maari drilling program. Work focussed on candidate well identification and execution sequencing. The New Zealand Government continues its assessment of the Maari Joint Venture's financial assurance arrangements for decommissioning, with ongoing engagement between the Joint Venture and the regulator. Notes: 1. Horizon holds a controlling interest of 57.03% in Cue and accordingly consolidates Cue for financial reporting purposes. Maari production, sales, revenue and costs in this quarterly exclude any contribution from Cue as Horizon obtained control of Cue immediately prior to 30 June 2026.
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Mereenie gas production averaged 25.6 TJ/d during the quarter (approximately 6.4 TJ/d net to Horizon), 7% lower than the previous quarter due to a planned five-day plant maintenance shutdown. Revenue remained broadly in line with the previous quarter at US$4.5 million, supported by continued strong contract gas pricing. The average realised gas price for the quarter was A$10.55/GJ. During the quarter, the Joint Venture progressed planning and evaluation activities to support future gas development opportunities at Mereenie. Subsurface studies and a long -term field development review are continuing to assess potential drilling opportu nities and future field optimisation initiatives, subject to market demand and commercial outcomes. Notes: 1. Horizon holds a controlling interest of 57.03% in Cue and accordingly consolidates Cue for financial reporting purposes. Mere enie production, sales, revenue and costs in this quarterly exclude any contribution from Cue as Horizon obtained control of Cue immediately prior to 30 June
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Production from Sinphuhorm and Nam Phong averaged approximately 1,912 boepd net to Horizon during the quarter . Sinphuhorm delivered average gas sales of 10 1.1 TJ/d ( 7.6 TJ/d net) and condensate sales of 176 bopd (13 bopd net), while Nam Phong averaged gas sales of 5.4 TJ/d (3.3 TJ/d net) over the period. Thailand continued to be a significant contributor to Group cash flow, underpinned by low operating costs and gas pricing linked to oil markets. Quarterly revenue increased almost 18% to US$7.3 million, despite slightly lower production volumes, as oil prices remained elevated during the period (noting gas pricing for both fields is linked to high sulphur fuel oil (HSFO)). The average realised gas price for the quarter was USD 7.24 per mscf. At Sinphuhorm, a package of short- term production enhancement initiatives, including a mini booster compressor and water shut- off operations, was approved during the quarter to sustain production ahead of first gas from Well Pad D. Production benefits from these initiatives are expected in the next quarter. Construction of Well Pad D and the associated flowline also progressed as planned, with first gas from PH -14 now expected in Q3 2026, ahead of the original Q4 2026 schedule. Planning for the proposed 2027 drilling program continued with the objective of maximising future gas sales and revenues, with an investment decision targeted for Q3 2026. At Nam Phong, field-wide optimisation initiatives implemented earlier in the year continued to support production performance. First gas from the Booster Compressor Project is expected next quarter and is anticipated to support higher and more sustainable gas production rates.
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CUE INDEPENDENT ASSETS The acquisition of a 57.03% controlling interest in Cue Energy Resource Limited (Cue) was completed on 2 July 2026, with effective control 1 passing to Horizon immediately prior to 30 June 2026. Accordingly, Horizon will consolidate Cue for financial reporting purposes at 30 June 2026. Cue’s contribution to FY26 production, sales, revenue and costs is immaterial and has therefore been excluded from this quarterly activities report. An overview of Cue’s independent assets and recent activities is provided below. Cue also holds an interest in the Maari (5%) and Mereenie (7.5%) fields, which are already reported elsewhere in this quarterly activities report. The Palm Valley gas field is located approximately 100 km west of Alice Springs and produces gas that can be transported through the Amadeus Gas Pipeline and the Northern Gas pipeline and be sold into the Northern Territory and East Coast gas markets. Gas production from the Palm Valley field was broadly consistent with the previous quarter averaging ~5.6 TJ/d (100%) and was sold on fixed term take or pay contracts. In April 2026, the Palm Valley joint venture signed a long -term gas supply agreement with the NT Government underpinning the drilling of two new Palm Valley appraisal wells (PV 14 and PV 15). The first well in the program, PV 14, commenced drilling on (26th July) using the Ensign 974 drilling rig. The overall program is anticipated to take approximately four and a half months to complete and is designed to evaluate and develop additional gas resources within the Palm Valley field and support ongoing gas supply to the Northern Territory market. If successful, first gas sales from PV 14 are anticipated from October 2026. The Dingo field produces gas, that is processed at the Brewer Estate processing facility located near Alice Springs and is transported via a pipeline to the Owen Springs Power Station, which provides electricity for Alice Springs. Gas from the Dingo field is sold under a long term contract. Gas production from the Dingo field was consistent with the previous quarter. Notes: 1. Horizon holds a controlling interest of 57.03% in Cue and accordingly consolidates Cue for financial reporting purposes. P roduction, sales, revenue and costs in this quarterly exclude any contribution from Cue as Horizon obtained control of Cue immediately prior to 30 June 2026.
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Cue holds an 11.25% interest in the Mahato PSC in Central Sumatra, Indonesia. The PSC is located within the prolific Central Sumatra Basin, which hosts some of Indonesia's largest oil fields, including the giant Minas and Duri fields. Commercial production from the PB oil field commenced in 2021 following the successful PB -1 exploration discovery in 2019. To date, 40 development wells have been drilled under approved field development plans, with the Bekasap reservoir remaining the primary producing formation. Cue reported net production of approximately 590 bopd during the quarter. Oil production is sold at Brent- linked pricing. Two infill development wells targeting the Bekasap reservoir have been approved for drilling. The program is expected to take approximately two months, with the first well, PB-41, spudding in July 2026. The Operator is also progressing the OPL 3 development plan, targeting additional production from both the Bekasap and Telisa reservoirs. Government approval is expected during 1Q FY27, with development activities anticipated to commence shortly thereafter. Planning and approvals for the GA-1 exploration well are continuing, with drilling expected during CY2026. Cue holds a 15% interest in the Sampang PSC, located in the Madura Strait offshore East Java, Indonesia. The PSC contains the producing Oyong and Wortel gas fields, which supply gas to PT Indonesia Power's Grati power station through the Grati gas processing facility. Production from the Oyong and Wortel fields continued to decline during the quarter as the fields mature. The Operator continues to evaluate opportunities to optimise production from existing wells. Installation of a compressor at the Grati processing facility is nearing completion and is expected to be operational during 1Q FY27. Cue has advised the joint venture that it does not intend to participate in the Sampang PSC beyond the current contract expiry in December 2027. Notes: 1. Horizon holds a controlling interest of 57.03% in Cue and accordingly consolidates Cue for financial reporting purposes. Prod uction, sales, revenue and costs in this quarterly exclude any contribution from Cue as Horizon obtained control of Cue immediately prior to 30 June 2026.
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Horizon Oil Limited Richard Beament CEO T: +61 2 9332 5000 F: +61 2 9332 5050 For more information please contact: Level 4, 360 Kent Street Sydney NSW 2000 Australia > horizonoil.com.au The estimates of petroleum reserves and resources contained in this statement are based on, and fairly represent, information and supporting documentation prepared by staff and independent consultants under the supervision of Mr Gavin Douglas, Chief Operating Officer, of Horizon Oil Limited. Mr Douglas is a full-time employee of Horizon Oil Limited and is a member of the American Association of Petroleum Geologists. Mr Douglas’ qualifications include a Master of Reservoir Eva luation and Management from Heriot Watt University, UK and more than 30 years of relevant experience. Mr Douglas consents to the use of the petroleum reserves and resources estimates in the form and context in which they appear in this statement. Authorisation This ASX announcement is approved and authorised for release by the Company Secretary on 29 July 2026. Horizon Oil Limited Richard Beament CEO T: +61 2 9332 5000 F: +61 2 9332 5050 For more information please contact: Level 4, 360 Kent Street Sydney NSW 2000 Australia > horizonoil.com.au Notes: 1. Horizon holds a controlling interest of 57.03% in Cue and accordingly consolidates Cue for financial reporting purposes. Prod uction, sales, revenue and costs in this quarterly exclude any contribution from Cue as Horizon obtained control of Cue immediately prior to 30 June 2026.