RNS Number : 5369X

Pennpetro Energy PLC

20 March 2026

10166359 (England and Wales)

PENNPETRO ENERGY PLC

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 MARCH 2025

CONTENTS

Page

COMPANY INFORMATION

Directors

Olof Nils Rapp (Senior Non-Executive Director)

Mavriky Kalugin (Chief Executive Officer) (appointed 16 October 2025)

Richard Spinks (Executive Chairman) (appointed 29 October 2025)

Sergiy Lesyk (Non-Executive Director) (appointed 27 January 2026)

Secretary

MSP Corporate Services Limited

Registered Office

Eastcastle House,

27-28 Eastcastle Street

London, W1W 8DH

Legal Advisors

UK Legal Advisers

US Legal Advisers

DMH Stallard LLP

Walne Law, PLLC

6 New Street Square

4900 Woodway

New Fetter Lane, London

Houston, Texas

EC4A 3BF

TX 77056

Porter Hedges LLP

1000 Main Street, 36th Fl.

Houston, Texas

TX 77002

Corporate broker

Oak Securities Ltd

90 Jermyn Street

London

SW1Y 6JD

Independent Auditor

Crowe U.K. LLP

55 Ludgate Hill

London

EC4M 7JW

Registrars

Computershare Investor Services plc

The Pavilions

Bridgewater Road

Bristol

BS13 8AE

Communications

Capital Market

Communications Limited

40 Strand

London

WC2N 5RW

Registered Number

10166359

Chairman's Statement

The period under review has been one of profound transition for Pennpetro Energy plc,

marked by significant operational, financial and governance challenges, which since

October 2025, after the period of these accounts have been dramatically improved and

overhauled to support the Company's stated goal of returning to trading on the exchange by

a new and experienced board. The delays in producing the audited accounts were created

by legacy management clearly pursuing an agenda at odds with the successful

reorganisation of and improvement of the Company's prospects, whereby the goal

appeared to be one of maintaining control by a number of means, including, delaying the

return of over 50% those who should have held shares with the associated voting capacity,

whilst simultaneously maintaining directorships and control over access to financial and

other documentation, long after their resignation and departure from the Company. This

despite the clear requirement that at the point of standing down as director/s of Pennpetro

Energy Plc, they should have immediately resigned directorships at all group companies

and subsidiaries. Something they deliberately did not do, in my personal opinion.

These difficulties were compounded by a sustained and coordinated campaign by certain

former directors and management and supported by associated shareholders and

other individuals who, in particular between the departure date of the former CEO, right up

until the General Meeting held on the 23/12/2025 at which time a significant improvement

in this situation was noticed, sought to undermine through false narratives the Company, at

every possible opportunity.

This delayed progress, bringing the Company to an operational and commercial standstill,

incurring the Company in otherwise unnecessary costs and putting shareholder

investments at significant risk of a total loss. Had the new directors not taken so seriously

the situations created by these actions and persisted in their efforts to return the Company

to good governance and worked with outside backer, RMD Group, closely and openly, this

report would not have been published.

This board have constantly stated that it was critical that all shareholders who have in the

past been disenfranchised be made whole in their lent share positions was a critical and

necessary step to return the business to trading. These individuals tried every possible

approach to maximise disruption and to thwart the Company's efforts to stabilise

operations, return shares to rightful owners from historical arrangements, perform this final

outstanding audit 2024/25 and ultimately, prepare the Company for its expected return to

trading. Whilst in a severely weakened form the final remnants of this activity persists to

this day, the board will fully end this in the near future, the Company will succeed going

forward.

Following the recent changes in leadership, the Board has constantly reviewed

and identified deficiencies in prior management oversight and governance, beginning at the

listing date of the business on the exchange and continuing until the departure of Thomas

Evans and associates in 2024. Ironically, they sought to use projection, social media, to

create a false narrative that what they themselves had perpetrated somehow was created

post-departure, by others.

In the most difficult stages of the turnaround of PPP, the Company was forced to consider

administration on more than one occasion, had no choice but to impair certain US assets,

and seek short-term funding arrangements to avoid imminent delisting and liquidation.

The departure of the former CEO of Pennpetro Energy Plc, in 2024 should have been the

end of the concerns for the Company, yet if anything the subsequent obstruction in

accessing key financial and banking information orchestrated by at least this

individual, post-departure and likely involving certain remaining personnel at the Company

connected with the US subsidiaries, materially delayed the Company's ability to restore

compliance, file complete audited accounts and secure funding to take the Company

forward, whilst, resulting in the continuation of the already lengthy, ongoing suspension of

trading.

The current Board, now in its third composition since this current suspension began, has

worked tirelessly with auditors, legal advisers and regulators to rectify historic issues,

strengthen internal controls, and rebuild corporate governance frameworks. This process

has been both time-consuming and costly, particularly given the financial position at PPP

that was inherited.

Nonetheless, the Company secured interim funding via, thus far, two Convertible Loan

Notes from Canadian RMD Group, enabling the settlement of long-dated legacy creditor

balances and providing working capital during this transition; as well as providing legal

support for the Company as the new directors unravelled the

complex circumstances being actively obfuscated by legacy directors and other employees

and online assets, to create a situation where their past actions may not be discovered by

the Company, as it would not exist to do so.

What for most companies would have been business as usual, was for PPP

a significant milestone, achieved in November 2025 with the holding of the Annual General

Meeting and the publication of the 2023/24 accounts prior to that.

A complete revamp of how the Company communicates with existing and potential

shareholders, stakeholders and partners has followed.

The audited 2024/25 accounts presented here bring the Company up to date with its

statutory reporting obligations in regard to overdue, audited, accounts filings, and ending

the cycle of missed account filings, impaired accounts and audits caused by

mismanagement in the past.

In conjunction with the release of the upcoming 2025/26 Interim Report, in short order from

today, the Company will have been brought fully into compliance, upon publication and

filing, removing the reasons for the suspension of the Company from the exchange.

From an accounting perspective, this clears the path to apply for re-admission to trading on

the London Stock Exchange, which the Board intends to request immediately. There can be

no guarantee that this request will be met with a positive response and immediate return to

trading.

For the record, it is not the intention of this board to delay the return of the Company to

trading on the exchange until after the RTO announced in Q4:2025, this is still an active

situation, but will not be allowed, nor used, to delay an orderly return to trading of the

Company.

The Board has prioritised governance reform, implemented strengthened compliance

structures and appointed experienced professionals, including, most recently, Mr. Sergiy

Lesyk as an Independent Non-Executive Director for Corporate Governance and

Compliance, and Advisory with advanced discussions regarding the appointment of a

quality Sponsor in anticipation, following re-admission of increased M & A activity at the

Company in the coming months.

We believe these steps demonstrate a decisive shift toward robust oversight and

disciplined management and that our shareholders are already feeling the benefits of the

same.

A key focus for the board is a swift resolution of all issues surrounding historically lent

shares. Back in 2023, Thomas Evans, the CEO responsible for creating this unacceptable

situation, promised, in writing to those who he had convinced to lend shares, that the

lenders of the same would have their shares returned to them within 4-6 weeks. This

situation was dramatically improved by the current board when shareholders voted at the

General Meeting (23/12/25) to authorise the issuance of sufficient new shares to return to

their rightful owners those owed by the Company; a turnaround from 90% votes against

(July '25) to 53% in favour (December '25). This will be resolved by the current board and all

who should be able vote will have that opportunity, again.

Encouraged by the wind change seen at the December 2025 General Meeting, from

shareholders, the board is advancing the necessary processes to regularise outstanding

matters and ensure that shares are issued where clear legal entitlement is demonstrated.

Shareholders are being kept informed throughout this process.

Transparency has been returned with clear visibility now attained. The situation regarding

the impaired US assets is such that the impairments cannot be justifiably lifted by the

board at this time, and it is not the view of the directors that this is likely to happen in the

near future, if at all.

This board prefers to focus its available funding, time and resources in the best interest of

all shareholders on strong, high value and properly documented and managed assets.

While 2025 was an exceptionally challenging year, the foundations for recovery have now

been firmly established. This current Board believes that the Company is well positioned to

move forward with strengthened governance, renewed strategic focus, real, tangible and

well due diligence assets and relationships, with the objective of returning to cash-

generative operations.

Importantly, the Company has dramatically improved, and this board will continue

to provide clarity, transparency and communication to and with all

shareholders existing and new alike.

Richard Spinks

Executive Chairman

20 March 2026

Strategic Report

The Directors present their strategic report on the group for the year ended 31 March 2025.

Principal Activities

The principal activity and purpose of the Group is to focus on developing strategic

traditional and transition energy projects. The Board ensures that the Company's strategy,

operational activities, and governance framework are aligned with this purpose and

directed toward the creation and preservation of long-term value for shareholders, while

having regard to wider stakeholder interests. Pennpetro Energy Plc acts as a holding

company and provides direction and other services to its subsidiaries.

Pennpetro USA Corp., holds 100% of the US operational subsidiary Nobel Petroleum USA,

Inc. ("Nobel USA"), an independent oil and gas production company based in the City of

Gonzales, Gonzales County, Texas, USA. Nobel USA's core area of business is in the Austin

Chalk and Eagleford Shale oil and gas horizontal formations together with the lower oil and

gas reservoir, the Buda Formation in South Texas, United States.

Strategic Approach

The Board's strategic intent is to maximise shareholder value through the continuing

investment into developing strategic traditional and transition energy projects.

Review of Business

The year under review represented a period of decisive restructuring and renewal for

Pennpetro Energy Plc. Following the suspension of trading in the Company's shares, the

Board prioritised restoring compliance, strengthening governance and stabilising the

Company's financial position. Short term funding has been secured for the Company

through a Convertible Loan Note, enabling the settlement of outstanding creditors and

supporting the Company through its transition. With compliance restored, and

engagement with advisers and regulators ongoing, the Company is focused on progressing

its application for re-admission to trading and advancing plans to secure longer term

financing and operational development to deliver sustainable shareholder value.

Financial Performance Review

The loss of the Group for the year ended 31 March 2025 amounts to $1,717,113 (year ended

31 March 2024: loss of $8,897,048).

The Board monitors the activities and overall performance of the Group on a regular

basis by reference to certain key milestones. The main Key Performance Indicators ("KPIs")

for the Group are as follows:

KPIs

2025

2024

Net cash flows from operating activities

(814,669)

(763,259)

Cash and short-term investments

101,852

6,266

Participation in well drilling programmes are monitored on an individual project basis in ter

ms of revenue and cost per barrel of oil or Mcf (one thousand cubic feet) of gas, together

with the anticipated payback period on each project.

Board diversity

Although the Board consisted of four male Directors, the Board supports diversity in the bo

ardroom.

Aside from the Directors, there are no employees in the Company. The Board will pursue an

equal opportunity policy and seek to employ those persons most suitable to delivering

value for the Company.

Corporate responsibility

The Group operates a management system that embodies Environmental, Health, Safety

and Social Responsibility principles.

A number of objectives have been set by the Board to address these principles and the Chi

ef Executive

Officer is responsible for demonstrating to the Board that these principles are adhered to in

its US Oil and Gas operation.

The policy of the Board of Pennpetro is to be fully accountable for the necessary practices,

procedures and means being in place so as to ensure that each objective is demonstrated

and that

continuous improvement practices are operating to ensure that the required practices, pro

cedures and means are being monitored, refined and optimised as necessary.

The objectives of the Environmental, Health, Safety and Social Responsibility Policy includ

• The Group shall manage all operations in a manner that protects the environment and

the health and safety of employees, third parties and the community.

• Risk identification, assessment and prioritisation can reduce risk and mitigate hazards

to employees, third parties, the community and the environment. Management of risk is a

continuous process.

• The use of internationally recognised standards, procedures and specifications for

design,

construction and commissioning activities are essential for achieving operational excellen

ce.

• The minimisation of environmental risks and liabilities are integral parts of the Group's o

perations.

• Third parties who provide materials and services or operate facilities on the Group's

behalf have an impact on Environmental, Health and Safety and Social Responsibility

excellence. It is essential that third-party services are provided in a manner consistent with

the Group's Policy.

• Preparedness and planning for emergencies are essential to ensuring that all necessary

actions are taken if an incident occurs, to protect employees, third parties, the public, the

environment, the assets and brand of Pennpetro.

• Open and honest communication with the communities, authorities and stakeholders

with which the Group operates builds confidence and trust in the integrity of Pennpetro.

The Group has determined that the greenhouse gas emissions from the operations of the

Company and its subsidiaries are sufficiently low that it does not have responsibility to

produce the disclosures required under the Companies Act 2006 (Strategic Report and

Directors' Report) Regulations 2013. The reason for this is that there was only limited

activity from its US based operating subsidiary during the current and prior period.

During the year to 31 March 2025, the Group closely monitored the limited drilling,

completion and production operations of its 5H well and there have been no breaches of

any applicable Acts recorded against the Group during the reporting period.

Task Force on Climate-related Financial Disclosures (TCFD)

This section of the report sets out our climate-related disclosures in relation to the four

pillars of the TCFD framework; Governance, Strategy, Risk Mitigation and Metrics & Targets.

Governance

The Board of Directors is responsible for oversight of climate related risks and

opportunities - refer to the principal risk exposure on climate related matters on page 11.

Climate related risks and opportunities are reviewed each six months.

Strategy

The principal focus of environmental risk is around potential flaring gas related issues but

is highly cognisant as to the impact of climate change issues prevailing within the

petroleum industry.

The Company's operational activity is situated in Texas, where weather patterns can

influence activities. The county of Gonzales where activities are located can be impacted

by windstorms and especially hurricanes during certain months of the year. This can lead

to flooding of operational sites as has happened to the Company in the past resulting in

severe flooding to drilling operations, resulting in additional expenditures for water

recovery.

The Board has considered the resilience of the Company's strategy under difference

climate-related scenarios, including a scenario consistent with limiting global warming

to 2°C or below. Given the Company's current limited operational footprint, direct

transition risk exposure is presently modest. However, the Board recognises that longer-

term regulatory changes, carbon pricing mechanisms, and shifts in energy demand could

affect the sector.

Risk Management

The Board of Directors is responsible for identifying and assessing climate related risks.

Although there's currently no formal process for this, the Board is considering developing

one as the Group's activities are expected to increase in the coming years.

As current onsite operations are limited at present, there have not been significant physical

environmental risks identified. The Board works with the operator at its sites to ensure

measures are in place to mitigate the impact of climate-related risks such as flooding or

storm damage.

The Directors also monitor the activities of the Texas petroleum authority - the Texas

Railroad Commission - regarding obligations and regulatory matters with operational

requirements on both a State and Federal perspective such that the Company can be pro-

active in complying with new requirements.

Metrics and Targets

The Group has limited operational and administrative activity at present and hence the

Directors are in the process of developing climate related metrics and targets appropriate

to the current extent of operations. The Group performs regular checks of air quality

operational equipment and analyses the results against local township vectors.

The Directors have assessed there to be limited Scope 1, Scope 2, and Scope 3 emissions

from the Group's administrative and operational activities; Scope 3 emissions relating to

the supply chain have not yet been evaluated. The Group did not generate any Scope 2

emissions during the year, as it did not consume purchased energy in its operations.

Section 172 Statement

Section 172 of the Companies Act 2006 requires Directors to take into consideration

the interests of stakeholders and other matters in their decision making. The

Directors continue to have regard to the interests of the Company's employees and other

stakeholders, the impact of its activities on the community, the environment and the

Company's reputation for good business conduct, when

making decisions. In this context, acting in good faith and fairly, the Directors consider wha

t is most likely to promote the success of the Company for its members in the long term.

We explain in this annual report, and referenced herein, how the Board engages with

stakeholders.

Promotion of the Company for the benefit of the members as a whole

The Directors believe they have acted in the way most likely to promote the success of the

Company for the benefit of its members as a whole, as required by s172 of the Companies

Act 2006.

The requirements of s172 are for the Directors to:

· Consider the likely consequences of any decision in the long term,

· Act fairly between the members of the Company,

· Maintain a reputation for high standards of business conduct,

· Consider the interests of the Company's employees,

· Foster the Company's relationships with suppliers, customers and others, and

· Consider the impact of the Company's operations on the community and the environme

nt.

The Company is quoted on the London Stock Exchange, and its members will be fully

aware, through detailed announcements, shareholder meetings and financial

communications, of the Board's broad and specific intentions and the rationale for its

decisions. The application of the s172 requirements are demonstrated throughout this

report and the financial statements as a whole, with the following examples representing

some of the key decisions made in this reporting period and up to the date of approval of

these financial statements:

The likely consequences of any decision in the long term

The application of the Section 172 (1) requirements can be demonstrated in relation to

some of the key decisions made during the reporting period, including:

· Renegotiation of strategic transactions and liabilities

· Focus on developing strategic energy projects

· Strengthening financial governance and management

The need to act fairly between members of the Company

After weighing up all relevant factors, the Directors consider which course of action best

enables delivery of our strategy over the long-term, taking into consideration the impact on

stakeholders. The Directors believe they have acted in the way they consider most likely to

promote the success of the Company for the benefit of its members as a whole.

The Board is committed to maintaining good communication and having constructive

dialogue with its shareholders. The Company has close ongoing relationships with key

private shareholders, analysts, and brokers, providing the opportunity to discuss issues

and provide feedback at meetings with the Company. All shareholders are encouraged to

attend the Company's Annual General Meeting and any general meetings held by the

Company.

The desirability of the Company maintaining a reputation for high standards of business

conduct

The Board periodically reviews and approves clear frameworks to ensure that its high

standard are maintained both within the Group and the business relationships we

maintain. This, complemented by the various ways the Board is informed and monitors

compliance with relevant governance standards, help ensure its decisions are taken and

that the Group acts in ways that promote high standards of business conduct.

The interests of the Company's employees

The Company had no employees during the year. Accordingly, the Directors did not have

any matters to consider in respect of the interests of employees when performing their

duties under section 172 (1) of the Companies Act 2006. The Board keeps the Company's

resourcing requirements under review and will give due consideration to employee interest

should staff be engaged in the future.

The fostering of relationships with suppliers, customers and others

Delivering on our strategy requires strong mutually beneficial relationships with suppliers.

The Group values all of its suppliers and aims to build strong positive relationships through

open communication and adherence to option agreement terms. The Group is committed

to being a responsible entity and doing the right thing for its suppliers and business

partners.

The impact of the Company's operations on the community and the environment

The Group is committed to the highest environmental, social and governance standards

both internally and within the Group and externally with its partners. The Group is

committed to being a responsible entity in terms of the community and the wider

environment. As an oil and gas production Company operating in Texas, the Board takes

seriously its ethical responsibilities to the communities and environment in which it works.

We abide by the local and relevant UK laws on anti-corruption & bribery. The Company,

recognizing the global impact of environmental concerns, initiated due diligence to expand

its experiences and core competencies in the fossil energy sector to specific green energy

initiatives. These initiatives were secured with US intellectual property filings and are being

expanded internationally.

Conclusion

Having considered the matter set out above, the Directors are satisfied that they have

fulfilled their duty under section 172 (1) of the Companies Act 2006 to act in good faith in a

manner most likely to promote the success of the Company for the benefit of its members

as a whole.

Principal Risks and Uncertainties

The Group's activities expose it to a variety of risks and uncertainties.

Market risk

The Group operates in an international market for hydrocarbons and is exposed to risk arisi

ng from variations in the demand for and price of the hydrocarbons. Oil and gas prices

historically have fluctuated widely and are affected by numerous factors over which the

Group does not have any control, including world production levels, international

economic trends, currency exchange fluctuations, inflation, speculative activity,

consumption patterns and global or regional political events. The Group will consider

hedging against the risks of fluctuating oil prices and currency exchange once commercial

production recommences.

Environmental risk

The Group's operations are subject to environmental regulation in all the jurisdictions in

which it

operates. The Group is unable to predict the effect of additional environmental laws and re

gulations which may be adopted in the future, including whether any such laws or

regulations would

adversely affect the Group's operations. There can be no assurance that such new environ

mental

legislation once implemented will not oblige the Group to incur significant expenses and un

dertake significant investments. The Group identifies, assesses and prioritises

environmental risks on an ongoing basis, as part of its management system.

Financing and liquidity risk

The Group is dependent on external funding to meet its working capital requirements,

settle creditor balances, and progress its strategic objectives. At the reporting date, the

Group has limited cash resources and remains reliant on future equity fundraisings, debt

restructuring, and asset transactions. There is no certainty that additional funding will be

available.

Failure to secure sufficient funding in a timely manner could result in an inability to meet

liabilities as they fall due, delays to operational plans, loss of key assets, or further dilution

for shareholders. The Board actively monitors short-term cash flow forecasts, engages with

existing creditors regarding restructuring options, and evaluates potential funding

alternatives.

If required, the Board will take appropriate mitigating actions, including deferral of

discretionary expenditure, renegotiation of payment terms, and prioritisation of essential

costs.

Oil and gas exploration and production risks

Whilst Nobel Petroleum USA, Inc., a Group subsidiary, took over the operatorship during

2019 with the formal approval of the regulator, the Texas Railroad Commission, and is the

Working Interest owner, the previous operator is still engaged under sub-contracting terms.

This allows the Group to fully integrate its operational teams in Houston.

Although it does not engage in exploration activities, per se, it might engage in some limited

exploration activity if it was in an area offsetting producing assets and the Company

decided such activity was worthwhile on a minimised risk basis to enhance its lease

profile. There are significant risks and hazards inherent in the exploration and production of

oil and gas, including environmental hazards, industrial incidents, labour disputes,

fire, drought, flooding and other acts of God. The occurrence of any of these hazards can

delay or interrupt production and increase production costs. The Group operates a

management system that embodies Environmental, Health, Safety and Social

Responsibility principles in order to mitigate these hazards.

There is no guarantee that oil and/or gas will be discovered in any of the Group's existing or

future licenses/permitted acreage or that commercial quantities of oil and/or gas can be

recovered.

Licences and title

The leases in which the Group has or is seeking to have an interest will be subject to

termination after the primary term of such leases unless there is current production of oil

and/or gas in commercial quantities. If a lease is not extended after the primary term, the

Group may lose the opportunity to develop and discover any hydrocarbon resources on

that lease area. The Group would then not be able to continue to access or benefit from

these leased assets, which could result in a loss of future economic benefits. The Directors

have concluded that the uncertainties and conditions giving rise to the impairment

recognised in the year ended 31 March 2024 remain unchanged.

This report was approved by the Board on 20 March 2026 and signed on its behalf:

Richard Spinks

Executive Chairman

Directors' Report

The Directors present their Annual Report and the audited Financial Statements for the yea

r ended 31 March 2025.

The new UK Listing Rules, which came into force on 29 July 2024, replaced the former

standard and premium listing segments of the London Stock Exchange Main Market with a

single segment.

The Company's ordinary shares are listed on the London Stock Exchange in the Equity

Shares (Transition) category of the Official List, in accordance with the new UK Listing

Rules.

Organisation Review

The Board is responsible for providing strategic direction for the Group. This incorporates

setting out objectives, management policies and performance criteria. The Board assesses

its performance against these on a monthly basis.

Composition of the Board at 31 March 2025 was one Executive Director, Executive

Chairman and one Non-Executive Director. During the year, on 16 December 2024, Thomas

Evans resigned from his position in the Company as Chief Executive Officer. Post year end,

on 16 October 2025, Mavriky Kalugin was appointed as an Executive Director of the

Company. On 29 October 2025, Richard Spinks was appointed as an Executive Director of

the Company. Composition of the Board at the date of signing these financial statements

was one Executive Director, one Executive Chairman, and two Non-Executive Directors.

The Board believes that the present composition provides an appropriate mix to conduct

the Group's affairs.

The Board is responsible for monitoring risks and uncertainties faced by the Group. These

risks and uncertainties are detailed in the Strategic Report and note 3 to the financial

statements.

The corporate governance arrangement of the Group is disclosed in the Corporate

Governance Report.

Directors and Directors' interests

The Directors who held office during the year to the date of approval of these financial state

ments, together with their beneficial interests in the ordinary shares of the Company, are

shown below.

31 March 2025

31 March 2024

Ordinary shares

(number)

options

(number)

Ordinary

(number)

options

(number)

Olof Rapp

2,500,000

Thomas Evans (resigned 16

December 2024) (1)

500,000

Andy Clifford (resigned 25

March 2024)

1,000,000

Stephen Lunn (resigned 7

November 2025)

1,404

Robert Menzel (appointed 21

January 2025)

Mavriky Kalugin (appointed 16

October 2025)

Richard Spinks (appointed 29

October 2025)

(1) Thomas Martin Evans shares are held by FHF Securities (A'Asia) Limited. FHF

assisted the Company in contributing 4,500,000 shares to the April 2023 placement. The

4,500,000 shares are under agreement with the Company to be replaced through the

mechanism of a new prospectus.

The Directors who held office at 31 March 2025 are summarised as follows:

Name of Director

Position

Stephen Lunn

Executive Chairman (resigned 7 November 2025)

Thomas Evans

Executive Director (resigned 16 December 2024)

David Lenigas

Executive Chairman (resigned 31 October 2024)

Robert Menzel

Executive Director (appointed 21 January 2025)

Olof Rapp

Senior Non-Executive Director

Directors' Remuneration

The Remuneration Committee assesses the appropriateness of the nature and amount of

emoluments of the Directors on a periodic basis by reference to relevant employment

market

conditions with the overall objective of ensuring maximum stakeholder benefit from the ret

ention of a high-quality Board and senior executive team.

The Directors' remuneration and policies for appointment or replacement of directors are d

isclosed in the Directors' Remuneration Report.

Dividends

The Directors do not recommend the payment of a dividend (2024: $Nil).

Share capital and major shareholdings

The issued share capital of the Company as at 31 March 2025 comprised 112,299,089

Ordinary shares of 1p (2024: 100,299,089).

The Company has only one class of share capital formed of ordinary shares. All shares for

ming part of the ordinary share capital have the same rights and each carry one vote.

As at 27 February 2026 the Company had been notified of the following interests in the

Company's ordinary share capital:

Number of shares

Percentage (%)

Hargreaves Lansdown (Nominees)

Limited

9,899,411

8.82

Interactive Investor Services Nominees

Limited

8,697,695

7. 75

Hargreaves Lansdown (Nominees)

Limited

7,558,903

6.73

Hargreaves Lansdown (Nominees)

Limited

7,317,390

6.52

Interactive Investor Services Nominees

Limited

6,891,873

6.14

Pennpetro Energy Plc

6,000,000

5.34

Barclays Direct Investing Nominees

Limited

5,434,715

4.84

HSDL Nominees Limited

4,980,290

4.43

Pershing Nominees Limited

4,639,527

4.13

HSDL Nominees Limited

3,875,662

3.45

Interactive Investor Services Nominees

Limited

3,672,134

3.27

To the best of the Directors' knowledge, no shareholder directly or indirectly exercises, or

could exercise, control over the Company.

Going Concern

These financial statements have been prepared on the going concern basis, as set out in

Note 2.3.

Under the going concern assumption, an entity is ordinarily viewed as continuing in

business for the foreseeable future with neither the intention nor the necessity of

liquidation, ceasing trading or seeking protection from creditors pursuant to laws or

regulations.

The Group received minimum income from oil sales in the year to 31 March 2025, even

along with reducing expenditure for the financial year 2026, the forecasts indicate that the

Group and Parent Company, in order to meet their operational objectives, and expected

liabilities as they fall due, will be required to raise additional funds within the next 12

months.

On 24 September 2025, the Company entered into a convertible loan note agreement to

provide the Company with £250,000 for working capital requirements. Another convertible

loan note agreement to provide the Company with £250,000 for working capital

requirements was entered into on 28 January 2026. Further details are set out in Note 29.

Whilst the Directors are confident that they will secure the necessary funding, the current

conditions do indicate the existence of a material uncertainty that may cast significant

doubt regarding the applicability of the going concern assumption. The Directors are

confident in the Company's ability to raise additional funds as required, from existing

and/or new investors, within the next 12 months. Thus, they continue to adopt the going

concern basis of accounting preparing these financial statements.

Events after the Reporting Period

Corporate Undertaking

Petroquest Energy Limited issued a Corporate Undertaking on 25 August 2025, within

which the majority of the Petroquest loan note would be written off and its security over

assets held in Nobel Petroleum LLC be released. The balance of the loan will be converted

into a 50% stake in Pennpetro USA Corp. This process has not yet been finalised as of the

date of approval of these financial statements.

Heads of Terms agreement Limnytskyi Oil Field

The Company announced that it signed a Heads of Terms Agreement to acquire a new

asset in the Lymnytskyi Oil Field in conjunction with RMD Holdings Ltd.

Details of proceeds raised after the reporting period are detailed in note 29.

Provision of Information to Auditor

So far as each of the Directors is aware at the time this report is approved:

• there is no relevant audit information of which the Company's auditor is unaware; and

• the Directors have taken all steps that they ought to have taken to make themselves

aware of any relevant audit information

and to establish that the auditor is aware of that information.

Independent Auditor

The auditor, Crowe U.K. LLP will be proposed for reappointment in accordance

with section 485 of the Companies Act 2006. Crowe U.K. LLP has signified its willingness to

continue in office as auditor.

This report was approved by the board on 20 March 2026 and signed on its behalf:

Richard Spinks

Executive Chairman

As at the date of this report, the following directors held office in the Company:

Olof Nils Anders Rapp, Senior Non-Executive Director

Olof Rapp has vast international experience in the aerospace and automotive sector and h

as held

leading managerial positions with Rolls- Royce International, Volvo Truck Corporation and

VistaJet International in South America, Middle East and Asia. His last position at Rolls

Royce was as Regional Director, Malaysia, with overall responsibility for Rolls-Royce Plc's

business in Malaysia and Brunei (Aviation, Marine, Nuclear and Oil & Gas). Olof serves as a

Board Director in Serunai Commerce Sdn Bhd. He has also served as Director of European

Chamber of Commerce Malaysia (EuroCham), and Vice President of Swedish Chamber of

Commerce Malaysia (SwedCham).

Richard George Spinks, Executive Chairman

Richard, a serial entrepreneur, has 40 years' experience working across sectors including

technology, fisheries, agriculture, forestry, and for the past 13 years, renewable energy and

decarbonisation fuel product development. He has founded several disruptive companies

in traditional industry sectors, held executive and board positions in privately held, and in

both US and UK listed entities. Richard works internationally and has deep knowledge ad

strong connections, including in Ukraine where he has been active for over 20 years.

Richard is multi-lingual and a strong communicator in multiple languages.

Mavriky Anisimovich Kalugin, Chief Executive Officer

Mavriky Kalugin has over 28 years of experience in the oil and gas sector and extensive

global expertise in managing upstream and service companies, greenfield and brownfield

development, and production optimization. He recently served as Executive Director and

COO and Naftogaz Group in Ukraine. Mavriky also works as Deputy Chair for Ukrnafta JSC,

and Executive Vice President for production and refining. Previously, Mavriky held senior

positions for Petrofac, Cairn India, TNK-BP, ConocoPhillips, and ARCO-Alaska. He has a

BSc Chemical Engineering degree from the University of Idaho and is a US citizen, from

Alaska.

Sergiy Lesyk, Non-Executive Director

Sergiy Lesyk has over 25 years of experience in the international financial services sector,

including wealth management, corporate finance, and investment banking. He is currently

Director of Research and Analytics at FTSE Russell, a subsidiary of the London Stock

Exchange Group. He previously served as Head of Representative Office at UBS AG,

representing the largest Wealth Manager in Ukraine, and Head of Research at Millenium

Capital. Sergiy is a chartered certified accounting, having started his career at Price

Waterhouse in 1994, and graduating from the London School of Economics.

Statement of Directors' Responsibilities

The Directors are responsible for preparing the Annual Report and the Financial

Statements in accordance with applicable laws and regulations.

Under Company law the Directors must not approve the Financial Statements unless they

are satisfied that they give a true and fair view of the state of affairs of the Company and

Group as at

the end of the financial year and of the profit or loss of the Group for that period. In preparin

g these Financial Statements, the Directors are required to:

· select suitable accounting policies and then apply them consistently;

· make judgments and accounting estimates that are reasonable and prudent;

· state whether the applicable UK adopted international accounting standards have been

followed subject to any material departures disclosed and explained in the Financial

Statements; and

· prepare the Financial Statements on a going concern basis unless it is inappropriate to

presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient

to show and explain the Company's transactions and disclose with reasonable accuracy at

any time the financial position of the Company and the Group and enable them to ensure

that the Financial Statements comply with the Companies Act 2006. They

are also responsible for safeguarding the assets of the Company and Group and hence for

taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are also responsible for the maintenance and integrity of the corporate and

financial information included on the Company's website. Legislation in the United

Kingdom governing the preparation and dissemination of the Financial Statements may

differ from legislation in other jurisdictions.

Directors' Responsibility pursuant to DTR4

Each of the Directors whose names and functions are listed on page 2 confirm that, to the

best of their knowledge and belief:

· The Financial Statements give a true and fair view of the assets, liabilities, financial

position and loss of the Group and Company; and

· The Annual Report and Financial Statements, including the Strategic Report, includes a

fair review of the development and performance of the business and the position of the

Group and Company, together with a description of the principal risks and uncertainties

that they face.

This statement was approved by the board on 20 March 2026 and signed on its behalf:

Richard Spinks

Executive Chairman

20 March 2026

Corporate Governance Practices

Pennpetro Energy plc's ordinary shares are listed on the London Stock Exchange in the

Equity Shares (Transition) category and is thus not

required to comply with the requirements of the U.K. Corporate Governance Code ("the Co

de") as issued by the Financial Reporting Council. The disclosures below are required by

the UKLA's Disclosure and Transparency Rule 7.

The Board is committed to ensuring the highest standards of corporate governance, and vol

untarily complies with, subject to the exceptions listed below, the supporting

principles and provisions set out in the Code.

The Company is small with a modest resource base. The Company has a clear mandate to

optimise the allocation of limited resources to support its development plans. As such, the

Company strives to maintain a balance between conservation of limited resources and

maintaining robust corporate governance practices. As the Company evolves, the Board is

committed to enhancing the Company's corporate governance policies and practices

deemed appropriate for the size and maturity of the Company.

Principle 1: Board Leadership and Company Purpose

The Company's purpose is to focus on developing strategic traditional and transition energy

projects. The Board ensures that the Company's strategy, operational objectives, and

governance framework are aligned with this purpose.

The Board determines the strategic objectives of the Company and oversees their

implementation with a focus on long-term value generation and preservation.

The Board reviews opportunities and risks to the future success of the Company through

regular Board Meetings. The Board usually meets a minimum of four times per year but may

meet more frequently on an ad-hoc basis as and when required. The Chairman is

ultimately responsible for ensuring that each board decision is taken having sufficient

information on and with all due discussion as is relevant to such discussion.

Culture underpins the delivery of strategy and long-term success. The Board monitors and

assesses culture through

· Review of operational performance and conduct;

· Oversight of regulatory compliance;

· Consideration of stakeholder feedback; and

· Review of adherence to expected standards of behaviour.

The Board takes corrective action where behaviours or practices are not aligned with the

Company's values or governance expectations.

During the year to 31 March 2025, no resolutions received 20% or more of votes cast

against the Board's recommendation.

The Board has procedures in place to identify and manage conflicts of interest. The Board

is aware of the other commitments and interests of its Directors and changes to these

commitments and interests are report to, and, where appropriate, agreed with the rest of

the Board. Declared interests are recorded in the minutes.

Principle 2: Division of Responsibilities

The Group has a schedule of matters reserved for its own decision and two committees

comprised of Non-Executive Directors: The Audit Committee and the Remuneration

Committee, each with delegated duties and responsibilities set out in respective Terms of

Reference.

The division of responsibilities between the Chairman and the Chief Executive Officer is

clearly defined, however, they work closely together to ensure effective decision making

and successful delivery of the Group's strategy.

During the year, the Board held 3 meetings. Attendance was as follows:

Director

Meetings Attended

Meetings Eligible

David Lenigas

Thomas Evans

Olof Rapp

Stephen Lunn

Robert Menzel

Principle 3: Composition, Succession and Evaluation

During the year, the Board comprised of one Executive Director, one Executive Chairman

and one Non-Executive Director. All Directors are subject to annual re-election at the

following Annual General Meeting.

The Board has established an Audit Committee and a Remuneration Committee, however,

each currently comprises one member. The Code recommends that a small company

Audit Committee and Remuneration Committee should have at least two members. Given

the current size and scale of the Company's operations, the Board considers the present

structure appropriate. Committee composition will be reviewed as the Company

develops.

The Board has significant experience in the oil and gas sector and from that, a strong

network of individuals working in the sector. The Board leads the process for Board

appointments and is responsible for review of the Board size, structure, and composition

(both executive and non-executive) including any potential new applicants to ensure the

Board contains the right balance of skills, knowledge, and experience to manage and grow

the business.

The Board does not carry out a formal annual evaluation of its performance, its

committees, the Chairman, and individual Directors, which is contrary to the

recommendation of Code Provision 21. However, the Chairman continuously considers the

performance of the Board, its committees and of individual directors and provides

feedback when appropriate.

The Board considers the time and cost involved in carrying out a formal process, especially

one that is externally facilitated, cannot be justified for the Company at this stage in its

development. Nonetheless, the Board acknowledges the merits in carrying out formal

board evaluations and will monitor the continuing suitability of this stance as the Company

grows in size.

Principle 4: Audit, Risk and Internal Control

The Audit Committee currently comprises one member, Olof Rapp. The Code recommends

that a small company Audit Committee should have at least two members. Given the

current size and scale of the Company's operations, the Board considers the present

structure appropriate. Committee composition will be reviewed as the Company develops.

The Board considers both principal and emerging risks as part of its ongoing risk review

process. Emerging risks are identified through:

· Regular Board discussions;

· Engagement with advisers;

· Monitoring regulatory and industry developments; and

· Assessment of operational and environmental developments.

Where emerging risks are identified, the Board evaluates their potential impact and

likelihood and implements mitigating actions, which may include operational controls,

insurance, contractual protections or strategic adjustments.

The Board is responsible for the Company's risk management and internal control systems.

The Board monitors these systems on an ongoing basis and has conducted an internal

review post year end.

Principle 5: Remuneration

During the year, the Remuneration Committee:

· Reviewed directors' remuneration arrangements;

· Assessed the appropriateness of directors' fees in light of the Company's size,

performance, and financial position; and

· Considered market comparators where appropriate.

The Committee ensures that remuneration arrangements support the long-term success of

the Company and do not encourage excessive risk-taking.

As the Company is in a transition stage, the use of traditional performance standards,

such. as corporate profitability, is not considered to be appropriate in the evaluation of

corporate or directors' performance. Discretionary bonuses may be paid to aid staff

retention and reward performance. The Board considers that the remuneration policy has

operated as intended in terms of Company performance and quantum.

Provisions not applied

The following describes the ways in which the Company does not comply with the detailed

provisions of the Code and the Board's rationale thereon:

• given the size of the Board and the Company's current limited operational status, certain

provisions of the Corporate Governance Code (in particular the provisions relating to the

composition of the Board and the division of responsibilities between the Chairman and

chief

executive and executive compensation), are not being complied with by the Company as th

e Board does not consider these provisions to be appropriate for the Company;

• the Board has considered the requirement to prepare a viability statement. As the Group

is in the early stages of establishing operations and has not yet achieved a stable revenue

base, the Board does not consider it appropriate to provide a viability statement this year.

This position will be reviewed annually, and a viability statement will be prepared once

operations and revenue generation have reached a stable and sustainable level. Further

details regarding the Group's assessment of going concern are provided in note 2 of these

financial statements;

• the Board as a whole reviews audit and risk matters in accordance

with adopted terms of reference which govern the matters to be reviewed and the

frequency with which such matters are considered. The Board is responsible for the

appointment of auditors and approval of their remuneration, monitors and reviews the

integrity of the Company's financial statements, and takes responsibility for any formal

announcements on the Company's financial performance;

• the Board as a whole will be responsible for the appointment of executive and non-

executive

Directors. The Company does not currently believe it is necessary to have a separate nomin

ations committee at this time. The requirement for a nominations committee will be

considered on an ongoing basis;

• the Board believes in the benefits of diversity, including the need for diversity in order to e

ffectively represent shareholders' interests. This diversity is not restricted to gender but

also includes

geographic location, nationality, skills, age, educational and professional background. The

board's policy remains that selection should be based on the best person for the role;

• the Board as a whole will consider the Board's size, structure and composition and the sc

ale and structure of the Directors' fees, taking into account the interests of Shareholders

and the performance of the Company;

• the Board does not comply with the provision of the Corporate Governance Code that at

least half of the Board, excluding the Chairman, should comprise non-

executive directors determined by the Board to be sufficiently independent;

• the Company has in place procedures ensuring compliance with the new Market Abuse

Regulation and the Board will be responsible for taking all proper and reasonable steps

to ensure compliance with the Market Abuse Regulation by the Directors; and

• the Company will not seek Shareholder approval at a general meeting in respect of any

further

acquisitions it may make, unless it is required to do so for the purposes of facilitating the fi

nancing arrangements or for other legal or regulatory reasons.

• the Board does not comply with the provision that the Audit Committee and

Remuneration Committee should comprise of at least two members.

• the Board did not carry out a review of the effectiveness of the Company's risk

management and controls, however, this has been carried out after the year end.

The Board of Directors

As at 31 March 2025, the Board of Directors comprised three members: one Executive

Director, one Executive Chairman and one Non-Executive Director. The Executive Chairman

and Executive Director have a wealth of experience analytically covering the oil and gas

industry. Similarly, the Non-Executive Director has extensive corporate and financial

experience. Since the year end, the Executive Chairman resigned and was replaced with a

new Executive Chairman. A new Chief Executive Officer was appointed since the year

end, both of whom have significant experience covering the oil and gas industry.

The Company has a policy of appraising Board performance annually and had adopted an

internal policy of regular face to face meetings in which all Board members discuss any

issues as and when they arise in relation to the Board or any individual member's

performance.

Board Meetings

The Board ordinarily meets on a monthly basis and as and when further required, providing

effective leadership and overall management of the Group's affairs by reference to those

matters reserved for its decision. This includes the approval of the budget and business

plan, major capital expenditure, acquisitions and disposals, risk management policies and

the approval of the financial statements. Formal agendas, papers and reports are sent to

the Directors, in a timely manner, prior to the Board meetings. Board meetings were mostly

held telephonically.

Internal Controls

The Board recognises the importance of both financial and non-financial controls and has

reviewed the Group's control environment and any related shortfalls during the year. Since

the Group was established, the Directors are satisfied that, given the current size and

activities of the Group, adequate internal controls have been implemented. Whilst they are

aware that no system can provide absolute assurance against material misstatement or

loss, in light of the current activity and proposed future developments of the Group,

continuing reviews of internal controls will be undertaken to ensure that they are adequate

and effective.

Relations with Shareholders

The Board is committed to providing effective communication with the shareholders of the

Company. Significant developments are disseminated through stock exchange

announcements and regular updates on the Company website. The Board views the Annual

General Meeting as a forum for communication between the Group and its shareholders

and encourages their participation in its agenda.

Richard Spinks

Executive Chairman

20 March 2026

Directors' Remuneration Report

The Company's Remuneration Committee comprises one Non-

Executive Director, Olof Rapp.

The Company's Remuneration Committee operates within the terms of reference approved

by the Board. In the year to 31 March 2025, the Remuneration Committee documented one

review.

The items included in this report are unaudited unless otherwise stated.

Committee's main responsibilities

• The Remuneration Committee considers the remuneration policy, employment terms

and remuneration of the Executive Director;

• The Remuneration Committee's role is advisory in nature and it makes

recommendations to the Board on the overall remuneration package for the Executive

Director in order to attract, retain and motivate high quality executives capable of achieving

the Company's objectives;

• The Remuneration Committee also reviews proposals for any share option plans and ot

her

incentive plans, makes recommendations for the grant of awards under such plans as well

as approving the terms of any performance-related pay schemes;

• The Board's policy is to remunerate the Company's executives fairly and in such a mann

as to facilitate the recruitment, retention and motivation of suitably qualified personnel; an

• The Remuneration Committee, when considering the remuneration packages of the

Company's executives, will review the policies of comparable companies in the industry.

Directors' remuneration (audited)

Fees and benefits of $421,367 were payable to Directors who held office during the year en

ded 31 March 2025 (2024: $226,222).

Salary

Valuation of

options

Taxable

benefits

Other

receipts

received

Pension

benefits

2025

Total

Olof Rapp

57,402

David Lenigas

84,263

Thomas Evans

123,840

3,428

127,268

Stephen Lunn

89,292

Robert Menzel

63,142

417,939

3,428

421,367

Salary

Valuation of

options

Taxable

benefits

Other

receipts

received

Pension

benefits

2024

Total

Olof Rapp

37,704

David Lenigas

150,814

Thomas Evans

37,704

226,222

The Directors' remuneration is disclosed in full in the above table and is not linked to perfor

mance.

All current Directors' service contracts are kept available for inspection at the Company's r

egistered office.

All shares and interests held by the Directors are disclosed in the Directors' report.

Total pension entitlements (audited)

The Company currently does not have any pension plans for any of the Directors and does

not pay pension amounts in relation to their remuneration.

The Company has not paid out any excess retirement benefits to any Directors or past Dire

ctors.

Payments to past directors (audited)

The Company has not paid any compensation to past Directors.

Payments for loss of office (audited)

No payments were made for loss of office during the year.

Directors' interests in share warrants (audited)

None of the Directors had interests in share warrants.

Consideration of shareholder views

The Remuneration Committee considers shareholder feedback received and guidance

from shareholder bodies. This feedback, plus any additional feedback received from time

to time, is considered as part of the Company's periodic reviews of its policy on

remuneration.

Statement of policy on Directors' remuneration

The Company's policy is to maintain levels of remuneration so as to attract, motivate, and

retain Directors and Senior Executives of the highest calibre who can contribute their

experience to deliver industry leading performance with the Company's operations.

Currently Director's remuneration is not subject to specific performance targets.

In the future, the Company may introduce a remuneration policy that aligns Executive

compensation with corporate and individual performance. This policy aims to align the

interests of Directors with those of shareholders and incentivize them to excel. The

Remuneration Committee reviews the remuneration policy and employment terms for

Directors, making recommendations to the Board of Directors for the overall remuneration

packages. No Director participates in any decision directly affecting their own

remuneration.

Policy for new appointments

Base salary levels will take into account market data for the relevant role, internal

relativities, the individual's experience and their current base salary. Where an individual is

recruited at below market norms, they may be re-aligned over time (e.g. two to three

years), subject to performance in the role. Benefits will generally be in accordance with the

approved policy.

For external and internal appointments, the Committee may agree that the Company will

meet certain relocation and/or incidental expenses as appropriate.

Policy on payment for loss of office

Payment for loss of office would be determined by the Remuneration Committee, taking

into account contractual obligations.

Other matters

The Company does not currently have any annual or long-term incentive schemes in place

for any of the Directors and as such there are no disclosures in this respect.

Olof Rapp

Non-Executive Director

20 March 2026

Audit Committee Report

The Audit Committee comprised two Directors, Olof Rapp (Chair of the Audit Committee)

and Thomas Evans, until Thomas's retirement from the Company on 16 December 2024.

The Audit Committee oversees the Company's financial reporting and internal controls and

provides a formal reporting link with the external auditors. The ultimate responsibility for

reviewing and approving the annual report and accounts and the half-yearly report remains

with the Board.

Main Responsibilities

The Audit Committee acts as a preparatory body for discharging the Board's

responsibilities in a wide range of financial matters, with terms of reference including:

• monitoring the integrity of the financial statements and formal announcements relating

to the Company's financial performance;

• reviewing significant financial reporting issues, accounting policies and disclosures in

financial reports, which are considered to be in accordance with the key audit matters

identified by the external auditors;

• overseeing that an effective system of internal control and risk management systems

are maintained;

• ensuring that an effective whistle-blowing, anti-

fraud and bribery procedures are in place;

• overseeing the Board's relationship with the external auditor and, where appropriate,

the selection of new external auditors;

• approving non-audit services provided by accounting firms; and

• ensuring compliance with legal requirements, accounting standards and the Listing

Rules and the Disclosure and Transparency Rules.

Governance

The Code requires that at least one member of the Audit Committee has recent and

relevant

financial experience. Both directors have served in financial executive and managing direct

or roles. As a result, the Board is satisfied that the Audit Committee has recent and

relevant financial experience.

Members of the Audit Committee are appointed by the Board and whilst shareholders, the

Company believes they are considered to be independent in both character and

judgement.

The Company's external auditor, Crowe U.K. LLP, did not provide any non-audit services in

the period.

The Audit Committee believes that the Company does not require an internal audit functio

n due to the current size of the organisation and its operations.

Meetings

In the year to 31 March 2025 the two members of the Audit Committee have met once. The

key work to be undertaken by the Audit Committee is as follows;

• interview of external auditors and recommendation to the Board;

• review of audit planning and update on relevant accounting developments;

• consideration and approval of the risk management framework, appropriateness of key

performance indicators;

• consideration and review of full-year results;

• review of the effectiveness of the Audit Committee; and

• review of internal controls.

The Code states that the Audit Committee should have primary responsibility for making a

recommendation on the appointment, reappointment or removal of the external auditor.

External auditor

The Audit Committee appointed Crowe U.K. LLP as auditors to the Company, commencing

with the first audit for the year ended 31 December 2018. The external auditor has

unrestricted access to the Audit Committee Chairman. The Committee is satisfied that

Crowe U.K. LLP has adequate policies and safeguards in place to ensure that auditor

objectivity and independence are maintained.

The external auditors report to the Audit Committee annually on their independence from

the Company. In accordance with professional standards, the partner responsible for the

audit is changed every five years. The current auditor, Crowe U.K. LLP were first appointed

by the Company in 2019 following a tender process and therefore a new

partner was rotated onto the engagement for the March 2024 audit. Having assessed the

performance objectivity and independence of the auditors, the Committee will be

recommending the reappointment of Crowe U.K. LLP as auditors to the Company at the

2025 Annual General Meeting.

Olof Rapp

Non-Executive Director

20 March 2026

Independent auditor's report to the members of Pennpetro Energy Plc

Disclaimer of opinion

We were engaged to audit the financial statements of Pennpetro Energy plc (the "Parent

Company") and its subsidiaries (the "Group") for the year ended 31 March 2025 which

comprise the Consolidated Statement of Comprehensive Income, the Consolidated and

Parent Company Statements of Financial Position, the Consolidated and Parent Company

Statements of Changes in Equity, the Consolidated and Parent Company Statements and

of Cash Flows and notes to the financial statements, including a summary of material

accounting policies. The financial reporting framework that has been applied in the

preparation of the financial statements is applicable law and UK-adopted international

accounting standards.

We do not express an opinion on the accompanying Group and Parent Company financial

statements. Because of the significance of the matters described in the basis for

disclaimer of opinion section of our report, we have not been able to obtain sufficient

appropriate audit evidence to provide a basis for an audit opinion on these financial

statements.

Basis for disclaimer of opinion

The disclaimer of opinion arises as a result of the following matters:

1. Severe limitations over the evidence available for the audit of the Group entities,

including for the main operating subsidiaries which are incorporated in the United States of

America. Due to the death of the individual acting as Company Secretary and financial

controller in April 2024 and changes to the board there was a significant loss of financial

information during the year ended 31 December 2024 which the company has been unable

to reinstate.

We were unable to obtain sufficient appropriate audit evidence over the following balances

and transactions in the prior year, and as such do not have appropriate evidence over the

opening balances to which these relate:

· A share lending transaction involving some previous directors. The value of this

transaction was $425,617.

· The other gains/losses of $423,563 and legal expenditure of $299,436 included in the

financial statements. These amounts represent expenditure for which there is no

supporting information.

· Receipt of part of the proceeds, £180,000, from the issue of 5.8 million shares in the

Group.

· Certain decommissioning liabilities, currently included in the financial statements at

$50,000.

2. In addition to the matters in connection with the opening balances, we have not been

able to perform a review of management override of controls through the conduct of

journal entry testing for some subsidiaries in the Group. This has occurred due to the

absence of complete general ledgers which also agree to the individual trial balances as of

the year end. We were not provided general ledgers for the subsidiary

companies Pennpetro USA Corp, Nobel Petroleum LLC, Pennpetro Greentec Limited,

Pennpetro Greentec UK Limited and Pennpetro Green Energy Limited. We are therefore

unable to determine the completeness of the trial balance for these entities for purposes of

inclusion in the consolidation.

3. We were unable to obtain sufficient, appropriate audit evidence over the following

transactions and balances in the current financial year relating to the subsidiary company

Nobel Petroleum USA Inc:

· Cash at bank of $66,382

· Supporting documentation for the sample of journal transactions selected

As a result of these matters which together we consider material and pervasive, we were

unable to determine whether any adjustments might have been found in the financial

statement line items and the elements making up the Consolidated Statement of

Comprehensive Income, the Consolidated and Parent Company Statements of Financial

Position, the Consolidated Statement of Changes in Equity and the Consolidated and

Parent Company Statements of Cash Flows.

Overview of our audit approach

Materiality

In planning and performing our audit we applied the concept of materiality. An item is

considered material if it could reasonably be expected to change the economic decisions

of a user of the financial statements. We used the concept of materiality to both focus our

testing and to evaluate the impact of misstatements identified.

Based on our professional judgement, we determined overall materiality for the financial

statements as a whole to be $50,000 which represents 3% of the loss before taxation

(2024: $250,000, based on 3% of loss before tax). Materiality for the parent company

financial statements as a whole was set at $26,000 which represents 3% of the loss before

taxation (2024: $80,000, based on 3% of loss before tax).

We use a different level of materiality ('performance materiality') to determine the extent of

our testing for the audit of the financial statements. Performance materiality is set based

on the audit materiality as adjusted for the judgements made as to the entity risk and our

evaluation of the specific risk of each audit area having regard to the internal control

environment. Performance materiality was set at 60% of materiality for the financial

statements as a whole, which equates to $30,000 (2024 $150,000) and $15,600 (2024:

$48,000) for the Parent Company.

We agreed with the Audit Committee to report to it all identified errors in excess of $2,500

(2024: $12,500). Errors below that threshold would also be reported to it if, in our opinion

as auditor, disclosure was required on qualitative grounds.

Overview of the scope of our audit

The Company and Group finance function is based in the United Kingdom, and audit

procedures were carried out thereon from our office, with discussions with management as

required and information being requested from the US where appropriate. All procedures

were performed by the group audit team.

We assessed the Parent Company to be a significant component, on which we carried out

a full scope audit. The subsidiary entities were assessed to comprise a second component,

on which we carried out specific audit procedures.

Given the limited activity during the year, we did not consider that a visit to the Group's US

locations was required.

Key Audit Matters

In accordance with ISA (UK) 705, we have described below the matters that we have

determined to be key audit matters. Our responsibility is to address these matters in the

context of our audit of the financial statements as a whole and to form our opinion

thereon. However, because we do not express an opinion on the financial statements due

to the matters described in the Basis for Disclaimer of Opinion section, we do not provide

an opinion or any level of assurance on the financial statements as a whole, including the

matters described below.

Key audit matter

How the scope of our audit addressed the key

audit matter

Adequacy of accounting records

The Group has experienced significant

challenges in compiling the accounting

records for the year ended 31 March

2024, partly as a result of the individual

acting as Company Secretary and

financial controller passing away in April

2024. As a result, certain opening

balances include amounts without

adequate supporting information.

• We requested from management

supporting detail to the accounting records,

including breakdowns, contracts, invoices

and other documentation.

• We held discussions with the Directors

and the Group's outsourced accountants, to

obtain an understanding of accounting

transactions, and the extent of audit evidence

available.

Opinions on other matters prescribed by the Companies Act 2006

Due to the significance of the matters described in the basis for disclaimer of opinion

section of our report, we have been unable to form an opinion, whether based on the work

undertaken in the course of the audit:

• the information given in the strategic report and directors' report for the financial year for

which the financial statements are prepared is consistent with the financial statements;

and

• the strategic report and the directors' report have been prepared in accordance with

applicable legal requirements.

Matters on which we are required to report by exception

Notwithstanding our disclaimer of an opinion on the financial statements, in the light of the

knowledge and understanding of the Group and the Parent Company and their

environment obtained in the course of the audit performed subject to the pervasive

limitation described above, we have not identified material misstatements in the strategic

report or the directors' report.

Arising from the limitation of our work referred to above:

• we have not obtained all the information and explanations that we considered necessary

for the purpose of our audit; and

• we were unable to determine whether adequate accounting records have been kept or

whether the financial statements are in agreement with the accounting records and

returns.

We have nothing to report in respect of the following matters in relation to which the

Companies Act 2006 requires us to report to you if, in our opinion:

• returns adequate for our audit have not been received from branches not visited by us; or

• certain disclosures of directors' remuneration specified by law are not made;

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement, the Directors are

responsible for the preparation of the financial statements and for being satisfied that they

give a true and fair view, and for such internal control as the directors determine is

necessary to enable the preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the

Group's and Parent Company's ability to continue as a going concern, disclosing, as

applicable, matters related to going concern and using the going concern basis of

accounting unless the directors either intend to liquidate the group or company or to cease

operations, or have no realistic alternative but to do so.

Auditors responsibilities for the audit of the financial statements

Our responsibility is to conduct an audit on the Group and Parent Company financial

statements in accordance with applicable law and International Standards on Auditing

(UK) and to issue an auditor's report. However, because of the matters described in the

basis for disclaimer of opinion section of our report, we were not able to obtain sufficient

appropriate audit evidence to provide a basis for an audit opinion on these financial

statements. We are independent of the Group and Parent Company in accordance with the

ethical requirements that are relevant to our audit of the financial statements in the UK,

including the FRCs Ethical Standards applicable to public interest entities, and we have

fulfilled our other responsibilities in accordance with these requirements.

Explanation as to what extent the audit was considered capable of detecting irregularities,

including fraud

We design procedures in line with our responsibilities, set out above, to detect material

misstatements in respect of irregularities, including fraud. Owing to the inherent limitations

of an audit, there is an unavoidable risk that material misstatements in the financial

statements may not be detected, even though the audit is properly planned and performed

in accordance with the ISAs (UK). We are unable to determine whether the audit was

capable in its ability to detect irregularities, including fraud, on the basis that we were

unable to obtain sufficient appropriate audit evidence due to the matters described in the

basis for disclaimer of opinion section of our report.

Other matters which we are required to address

We were first appointed by the Board on 25 March 2019 to audit the financial statements

for the period ending 31 December 2018. Our total uninterrupted period of engagement is

seven years, covering the periods ending 31 December 2018 to 31 March 2025.

The non-audit services prohibited by the FRC's Ethical Standard were not provided to the

Group or the Parent Company and we remain independent of the Group and the Parent

Company in conducting our audit.

Our audit opinion is consistent with the additional report to the audit committee.

Use of our report

This report is made solely to the Parent Company's members, as a body, in accordance

with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken

so that we might state to the Parent Company's members those matters we are required to

state to them in an auditor's report and for no other purpose. To the fullest extent permitted

by law, we do not accept or assume responsibility to anyone other than the Parent

Company and the Parent Company's members as a body, for our audit work, for this report,

or for the opinions we have formed.

John Glasby

Senior Statutory Auditor

For and on behalf of Crowe U.K. LLP

Statutory Auditor

London

Date:

Note

		Year ended	Year ended
		31 March 2025	31 March 2024
		$	$
Continuing Operations
Revenue	5	30,067	493,005
Cost of Sales		-	(5,608)
Gross Profit		30,067	487,397
Administrative expenses	7	(1,285,069)	(1,592,150)
Other losses	7	-	(423,563)
Impairments	14	(104,142)	(7,108,447)
Operating Loss		(1,359,144)	(8,636,763)
Finance costs	10	(357,969)	(260,285)
Loss before Tax		(1,717,113)	(8,897,048)
Income tax	11	-	-
Loss for the year attributable to owners of the parent		(1,717,113)	(8,897,048)

		Year ended	Year ended
	Note	31 March 2025	31 March 2024
		$	$
Other Comprehensive Income:
Items that may be reclassified subsequently
to profit or loss
Currency translation differences		(107,889)	(472,718)
Other Comprehensive Loss for the Year		(107,889)	(472,718)
Total Comprehensive Loss for the Year		(1,825,002)	(9,369,766)
attributable to the owners of the parent
Loss per share attributable to the owners of the parent during the year
Basic (cents per share)	12	(1.59)	(9.02)
Diluted (cents per share)		(1.59)	(9.02)

The notes on pages 41 to 65 form part of these financial statements.

	Note	31 March	31 March
		2025	2024
		$	$
ASSETS
Current Assets
Trade and other receivables	16	-	307,881
Cash and cash equivalents	18	101,852	6,266
Total Current Assets		101,852	314,147
TOTAL ASSETS		101,852	314,147
EQUITY AND LIABILITIES
Equity Attributable to Owners of Parent
Share capital	19	1,431,895	1,277,639
Share premium	19	9,255,778	8,443,248
Convertible reserve		4,172,846	4,172,846
Reorganisation reserve		(6,578,229)	(6,578,229)
Foreign exchange reserve		(354,497)	(246,608)
Retained losses		(14,946,927)	(13,229,814)
Total Equity		(7,019,134)	(6,160,918)

	Note	31 March	31 March
		2025	2024
		$	$
Current Liabilities
Trade and other payables	21	2,403,955	2,129,116
Borrowings	20	4,717,031	4,345,949
Total Current Liabilities		7,120,986	6,475,065
TOTAL EQUITY AND LIABILITIES		101,852	314,147

These financial statements were approved by the Board of Directors on 20 March 2026

and signed on its behalf by:

Richard Spinks

Chairman

Company registration number: 10166359

The notes on pages 41 to 65 form part of these financial statements.

Note

31 March

2025

31 March

2024

ASSETS

Current Assets

Trade and other receivables

98,325

14,240

Cash and cash equivalents

35,122

Total Current Assets

133,447

14,281

TOTAL ASSETS

133,447

14,281

EQUITY AND LIABILITIES

Equity Attributable to Shareholders

Share capital

1,431,895

1,277,639

Share premium

9,255,778

8,443,248

Convertible reserve

4,172,846

Foreign exchange reserve

(268,138)

(214,671)

Retained losses

(16,438,239)

(15,459,199)

Total Equity

(1,845,858)

(1,780,137)

Current Liabilities

Trade and other payables

1,979,305

1,794,418

Total Current Liabilities

1,979,305

1,794,418

TOTAL EQUITY AND LIABILITIES

133,447

14,281

The Company has elected to take the exemption under Section 408 of the Companies

Act 2006 from presenting the parent company Statement of Comprehensive Income.

The loss for the parent company for the period was $979,040 (2024: $12,052,736).

These financial statements were approved by the Board of Directors on 20 March 2026

and were signed on its behalf by:

Richard Spinks

Executive Chairman

Company registration number: 10166359

The notes on pages 41 to 65 form part of these financial statements.

Group

		Share Capital Share	Convertible		Reorganization Reserve Foreign	Retained	Total Equity
		Premium	Reserve			Losses
					Exchange
					Reserve
	$	$	$	$	$	$	$
Balance at 31 March 2023	1,079,101	6,610,719	4,172,846	(6,578,229)	226,110	(4,332,766)	1,177,781
Loss for the period	-	-	-	-	-	(8,897,048)	(8,897,048)
Foreign currency	-	-	-	-	(472,718)	-	(472,718)
translation differences
Total comprehensive income for the period	-	-	-	-	(472,718)	(8,897,048)	(9,369,766)
Share issue (note 19)	198,538	2,053,847	-	-	-	-	2,252,385
Cost of share issue (note 19)	-	(221,318)	-	-	-	-	(221,318)
Balance at 31 March 2024	1,277,639	8,443,248	4,172,846	(6,578,229)	(246,608)	(13,229,814)	(6,160,918)
Loss for the period	-	-	-	-	-	(1,717,113)	(1,717,113)
Foreign currency	-	-	-	-	(107,889)	-	(107,889)
translation differences
Total comprehensive income for the period	-	-	-	-	(107,889)	(1,717,113)	(1,825,002)
Share issue (note 19)	154,256	849,224	-	-	-	-	1,003,480

	Share Capital	Share	Convertible		Reorganization Reserve Foreign	Retained	Total Equity
Group		Premium	Reserve		Exchange	Losses
					Reserve
	$	$	$	$	$	$	$
Cost of share issue (note 19)	-	(36,694)	-	-	-	-	(36,694)
Balance at 31 March 2025	1,431,895	9,255,778	4,172,846	(6,578,229)	(354,497)	(14,946,927)	(7,019,134)

Company

Share Capital

Premium

Convertible

Reserve

Foreign

Exchange

Reserve

Retained

Losses

Total Equity

Balance at 31 March 2023

1,079,101

6,610,719

4,172,846

(334,293)

(3,406,463)

8,121,910

Loss for the period

(12,052,736)

Foreign currency translation differences

119,622

Total comprehensive income for the

period

119,622

(12,052,736)

(11,933,114)

Company

Share Capital

Premium

Convertible

Reserve

Foreign

Exchange

Reserve

Retained

Losses

Total Equity

Share issue (note 19)

198,538

2,053,847

2,252,385

Cost of share issue (note 19)

(221,318)

Balance at 31 March 2024

1,277,639

8,443,248

4,172,846

(214,671)

(15,459,199)

(1,780,137)

Loss for the period

(979,040)

Foreign currency translation differences

(53,467)

Total comprehensive income for the

period

(53,467)

(979,040)

(1,032,507)

Share issue (note 19)

154,256

849,224

1,003,480

Cost of share issue (note 19)

(36,694)

Balance at 31 March 2025

1,431,895

9,255,778

4,172,846

(268,138)

(16,438,239)

(1,845,858)

The notes on pages 41 to 65 form part of these financial statements.

	Year ended	Year ended
	31 March 2025	31 March 2024
	$	$
Cash Flows from Operating Activities
Loss before tax	(1,717,113)	(8,897,048)
Foreign exchange	(107,504)	(471,786)
Finance costs	357,969	260,285
Impairment charge	104,142	7,108,447
	(1,362,506)	(2,000,102)
Changes to working capital
Decrease in trade and other receivables	307,881	7,418
Increase in trade and other payables	239,956	1,229,425
	547,837	1,236,843
Net Cash used in Operating Activities	(814,669)	(763,259)
Cash Flows from Investing Activities
Purchases of property, plant and equipment	(104,142)	(1,337,392)
Decrease / (increase) of short-term investments	-	31,525
Net Cash generated from / (used in)	(104,142)	(1,305,867)
Investing Activities
Cash Flows from Financing Activities

	Year ended	Year ended
	31 March 2025	31 March 2024
	$	$
Proceeds from issues of ordinary shares	1,003,480	2,252,385
Transaction costs on issue of ordinary shares	(36,694)	(221,318)
Proceeds from borrowings	50,000	-
Repayment of borrowings	(2,004)	-
Net Cash generated from Financing Activities	1,014,782	2,031,067
Net Increase / (Decrease) in Cash and Cash Equivalents	95,971	(38,059)
Cash and cash equivalents at the beginning of the period	6,266	46,792
Effect of exchange rates on cash balance	(385)	(2,467)
Cash and Cash Equivalents at the End of the Period	101,852	6,266

The notes on pages 41 to 65 form part of these financial statements.

Period end

31 March 2025

Period end

31 March 2024

Cash Flows from Operating Activities

Loss before tax

(979,040)

(12,052,736)

Finance costs

38,343

Impairment of investment

6,535,308

Impairment of intercompany loan balance

4,408,041

Impairment of short-term investments

50,699

Unrealised foreign exchange

(53,467)

25,063

(994,164)

(1,033,625)

Changes to working capital

Increase in trade and other receivables

(84,084)

(1,464,730)

Increase in trade and other payables

146,543

435,807

62,459

(1,028,923)

Net cash used in Operating Activities

(931,705)

(2,062,548)

Cash Flows from Investing Activities

Decrease of short-term investments

31,525

Net Cash generated from / (used in)

Investing Activities

31,525

Cash Flows from Financing Activities

Proceeds from issue of ordinary shares

1,003,480

2,252,385

Transaction costs on issue of ordinary shares

(36,694)

(221,318)

Net Cash generated from Financing Activities

966,786

2,031,067

Net movement in Cash and Cash Equivalents

35,081

Cash and cash equivalents at the beginning of

the year

Effect of exchange rates on cash balances

(3)

Cash and Cash Equivalents at the End of the

Year

35,122

The notes on pages 41 to 65 form part of these financial statements.

1. GENERAL INFORMATION

Pennpetro Energy plc (the "Company") is a public limited company which is listed on the

London Stock Exchange in the Equity Shares (Transition) category of the Official List and

incorporated and domiciled in England and Wales. Its registered office address is 6 Heddon

Street, London, W1B 4BT.

The consolidated financial statements of the Company consist of the following companies

(together "the Group"):

Pennpetro Energy plc	UK registered company
Pennpetro USA Corp	US registered company
Nobel Petroleum USA Inc	US registered company
Nobel Petroleum LLC	US registered company
Pennpetro Greentec Limited	Cyprus registered company
Pennpetro Greentec UK Limited	UK registered company
Pennpetro Green Energy Limited	UK registered company

The Group is an oil and gas developer with assets in Texas, United States. The Company's

US-

based subsidiaries own a portfolio of leasehold petroleum mineral interests centered on th

e City of Gonzales, in southeast Texas, comprising the undeveloped central portion of the

Gonzales Oil Field.

2. MATERIAL ACCOUNTING POLICY INFORMATION

The material accounting policies applied in the preparation of these consolidated financial

statements are set out below.

These policies have been consistently applied to all the years presented, unless

otherwise stated.

2.1. Basis of preparation

These consolidated financial statements have been prepared and approved by the Director

s in accordance with the UK adopted International Accounting Standards.

The financial statements have been prepared under the historical cost convention.

The preparation of financial statements in conformity with the UK adopted International

Accounting

Standards requires the use of certain critical accounting estimates. It also requires manage

ment

to exercise its judgement in the process of applying the Group's accounting policies. The ar

eas involving a higher degree of judgement or complexity, or areas where assumptions and

estimates are significant to the consolidated financial statements are disclosed in note 4.

The Directors note that the individual acting as Company Secretary and financial controller

passed away in April 2024. This has resulted in a significant limitation to the accounting

information and records available to the Directors for the preparation of the consolidated

financial statements for the year ended 31 March 2025.

2.2. Basis of consolidation

The Group financial statements consolidate the financial statements of the Company and

all its subsidiaries (the "Group").

Subsidiaries include all entities over which the Group is exposed, or has rights, to variable

returns from its involvement with the investee and has the ability to affect those returns thr

ough

its power over the investee. The existence and effect of potential voting rights that are curre

ntly

exercisable or convertible are considered when assessing whether the Group controls anot

her entity. Subsidiaries are consolidated from the date on

which control commences until the date that control ceases. Intra-group balances and any

unrealised gains and losses on income or expenses arising from intra-group transactions,

are eliminated in preparing the consolidated financial statements.

2.3. Going concern

The Directors have assessed the Group's ability to continue as a going concern for a period

of at least 12 months from the date of approval of these financial statements. This

assessment takes into account the Group's current financial position, expected operating

costs, planned activities, and availability of funding.

Since October 2025, the Company has engaged with a number of institutional investors in

connection with the proposed return of its shares to trading on the London Stock Exchange

and the planned acquisition of the Limnytskyi licence in Ukraine. Feedback to date has

been positive, and the directors believe that sufficient funding can be raised to meet the

Group's immediate operational and working capital requirements following the resumption

of trading. In addition, the Company has access to funding through a convertible loan note

("CLN") arrangement with RMD Group. In January 2025, the board approved a second

tranche of £250,000 under this facility, which is subject to an agreed use of funds. Further

funding may be made available under this or similar arrangements, should it be required.

RMD Group has also agreed to advance funds directly to suppliers and contractors in

Ukraine to progress activities relating to the Limnytskyi licence. These costs will not impact

2.4 New standards, amendments and interpretations adopted by the Group and Company

obligations.

statements on a going concern basis.

continue as a going concern.

The International Accounting Standards Board has issued standards and

interpretations effective for the first time for the financial period beginning 1 April 2024 for

entities applying UK adopted International Accounting Standards. The Directors consider

their adoption has not had any significant impact on the disclosures or on the amounts

reported in these financial statements:

the Group's short-term cash flows. Upon completion of the ongoing restructuring and

should the Limnytskyi licence form part of the continuing Group, the related assets and

activities will be transferred to the Company, together with the associated funding

Following the removal of a significant creditor from the balance sheet, the settlement of

the majority of remaining creditors, and the availability of committed and potential funding

to meet near-term obligations, the Directors consider it appropriate to prepare the financial

Whilst the Directors are confident in the Company's ability to raise additional funds as

required, from existing and/or new investors, the current conditions do indicate the

existence of a material uncertainty that may cast significant doubt regarding the

applicability of the going concern assumption. The financial statements do not include

adjustments that would arise in the event of the Group and Company not being able to

The Directors have considered IFRS and amendments that are in issue but not yet in effect

for the accounting period. They have assessed that none of these are expected to have a

significant impact on the amounts reported in future periods or to disclosures.

2.5 Revenue Recognition

Most of the Group's revenue is derived from the sale of physical goods to customers. The

contract contains one performance obligation which is satisfied at the point of delivery. The

performance obligation of goods sold are transferred according to the specific terms that

have been formally agreed with the customer, generally upon delivery.

The transaction price for this revenue is the amount which can be invoiced to the customer

once the performance obligations are fulfilled, reduced to reflect the provision recognised

for local taxes. There are no material rights of return, warranties, or variable consideration

affecting the transaction price. The transaction price is determined gross of sales tax,

where cash is received net of such taxes. Payment terms are typically within 30 days of

delivery, with no significant financing component.

For all sales of goods, revenue is recognised at a point in time, being the point at which the

goods are delivered to the customer.

2.6 Investments in Subsidiaries

Investments in subsidiaries are accounted for at cost less impairment.

2.7 Foreign Currency Translation

· Functional and presentation currency

Items included in each of the financial statements of the Group's entities are measured

using the currency of the primary economic environment in which the entity operates (the

'functional currency'). The functional currency of the UK parent entity is pound sterling and

the functional currency of the US subsidiaries is US dollars. The financial statements are

presented in US Dollars, rounded to the nearest dollar, which is the Group's and

Company's presentation currency.

· Transactions and balances

Foreign currency transactions are translated into the functional currency using the

exchange rates prevailing at the dates of the transactions or valuation where such items are

re-measured. Foreign exchange gains and losses resulting from the settlement of such

transactions and from the translation at year-end exchange rates of monetary assets and

liabilities denominated in foreign currencies are recognised in the Statement Of

Comprehensive Income.

· Group companies

The results and financial position of all the Group entities that have a functional currency

different from the presentation currency are translated into the presentation currency

as follows:

§ assets and liabilities for each Statement of Financial Position presented are translated at

the closing rate at the date of that Statement of Financial Position;

§ income and expenses for each Statement of Comprehensive Income are translated at

average exchange rates (unless this average is not a reasonable approximation of the

cumulative effect of the rates prevailing on the transaction dates, in which case income

and expenses are translated at the dates of the transactions); and

§ all resulting exchange differences are recognised in other comprehensive income.

On consolidation, exchange differences arising from the translation of the net investment

in foreign entities, and of monetary items receivable from foreign subsidiaries for which

settlement is neither planned nor likely to occur in the foreseeable future are taken to other

comprehensive income. When a foreign operation is sold, such exchange differences are

recognised in the Statement of Comprehensive Income as part of the gain or loss on sale.

2.8 Property, Plant and Equipment

Following evaluation of successful exploration of wells, if commercial reserves are

established and the technical feasibility of extraction demonstrated, and once a project is

sanctioned for commercial development, then the related capitalised exploration costs are

transferred into a single field cost centre within 'producing properties' within property, plant

and equipment after testing for impairment.

The net book values of 'producing properties' are depreciated on a unit of production basis

at a rate calculated by reference to proven and probable reserves and incorporating the

estimated future cost of developing and extracting those reserves once production has

commenced.

The Petroleum (Mineral lease) expenditure to date is over land that has already had

historical vertical drilled wells and has proven oil reserves. All these costs were therefore

immediately capitalised within property, plant and equipment.

All costs incurred after the technical feasibility and commercial viability of producing

hydrocarbons has been demonstrated, are capitalised within 'drilling costs and equipment'

on a well-by-well basis. Subsequent expenditure is capitalised only where it either

enhances the economic benefits of the development/producing asset or replaces part of

the existing development/producing asset. Any costs remaining associated with the part

replaced are expensed.

2.9 Intangible Assets

• Development expenditure

Expenditure on the drilling of development wells, including service, is capitalised initially

within intangible fixed assets and when the well has formally commenced commercial

production, then it is transferred to property, plant and equipment and is depreciated from

the commencement of production as described in the accounting policy for property, plant

and equipment.

• Drilling costs and Petroleum mineral leases

The Group applies the successful efforts method of accounting for oil and gas assets,

having regard to the requirements of IFRS 6 'Exploration for and Evaluation of Mineral

Resources'. Costs incurred prior to obtaining the legal rights to explore an area are

expensed immediately to the Statement of Comprehensive Income.

Exploration expenditure incurred in the process of determining exploration targets is

capitalised initially within intangible assets as drilling costs. Drilling costs are initially

capitalised on a well-by-well basis until the success or otherwise has been established.

Drilling costs are written off on completion of a well unless the results indicate that

hydrocarbon reserves exist and there is a reasonable prospect that these reserves are

commercially viable. Drilling costs are subsequently transferred to 'Drilling expenditure'

within property, plant and equipment and depreciated over their estimated useful

economic life. All such costs are subject to regular technical, commercial and

management review on at least an annual basis to confirm the continued intent to develop

or otherwise extract value from the discovery. Where this is no longer the case, the costs

are immediately expensed to the Statement of Comprehensive Income.

2.10 Impairment of Non-Financial Assets

Assets not ready for use are not subject to amortisation and are tested annually for

impairment. Assets that are subject to amortisation or depreciation are reviewed for

impairment at each reporting date. An impairment loss is recognised for the amount by

which the asset's carrying amount exceeds its recoverable amount. The recoverable

amount is the higher of an asset's fair value less costs to sell and value in use. For the

purposes of assessing impairment, assets are grouped at the lowest levels for which there

are separately identifiable cash flows (cash- generating units). Non-financial assets other

than goodwill that suffered impairment are reviewed for possible reversal of the

impairment at each reporting date.

2.11 Financial Assets

Classification

Financial assets are recognised when the Group becomes a party to the contractual

provisions of the instrument. At initial recognition, the Group measures its financial assets

at fair value plus transaction costs which comprise 'trade and other receivables' and 'cash

and cash equivalents'.

A financial asset shall be measured at amortised cost if both of the following conditions

are met:

• the financial asset is held within a business model whose objective is to hold financial

assets in order to collect contractual cash flows; and

• the contractual terms of the financial asset give rise on specified dates to cash flows

that are solely payments of principal and interest on the principal amount outstanding.

Recognition and measurement

At initial recognition, an entity shall measure a financial asset at its fair value plus

transaction costs that are directly attributable to the acquisition or issue of the financial

asset.

At initial recognition, an entity shall measure trade receivables at their transaction price if

the trade receivables do not contain a significant financing component.

Derecognition

The Group derecognises a financial asset when the contractual rights to the cash flows

from the asset expire, or it transfers the rights to receive the contractual cash flows on the

financial asset in a transaction in which substantially all the risks and rewards of the

ownership of the financial asset are transferred. Any interest in transferred financial assets

that is created or retained by the Group is recognised as a separate asset or liability.

Derecognition also takes place for certain assets when the Group writes-off balances

pertaining to the assets deemed to be uncollectible.

Impairment of financial assets

IFRS 9 mandates the use of an expected credit loss model to calculate impairment losses

rather than an incurred loss model, and therefore it is not necessary for a credit event to

have occurred before credit losses are recognised. The impairment model applies to the

Group's financial assets and loan commitments. The Group recognises lifetime expected

credit losses ("ECL") when there has been a significant increase in credit risk since initial

recognition. However, if the credit risk on the financial instrument has not increased

significantly since initial recognition, the Group measures the loss allowance for that

financial instrument at an amount equal to a lifetime ECL.

At each reporting date, the Group assesses whether financial assets carried at amortised

cost are credit impaired. A financial asset is credit impaired when one or more events that

have a detrimental impact on the estimated future cash flows of the financial asset have

occurred.

2.12 Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank and in hand and demand deposits with

banks.

2.13 Trade and Other Payables

Trade and other payables are initially measured at fair value, net of transaction costs that

are directly attributable to the issue of the financial liability and are subsequently

measured at amortised cost using the effective interest method if the time value of money

is significant.

2.14 Borrowings

Borrowings are recognised initially at fair value minus transaction costs that are directly

attributable to the issue of the financial liability. Borrowings are subsequently carried at

amortised cost; any difference between the proceeds (net of transaction costs) and the

redemption value is recognised in the Income Statement over the period of the borrowings,

using the effective interest method.

Borrowings are classified as current liabilities unless the Group has an unconditional right

to defer settlement of the liability for at least 12 months after the end of the reporting

period.

2.15 Share Capital

Ordinary shares are classified as equity when there is no obligation to transfer cash or

other assets. Incremental costs directly attributable to the issue of equity instruments are

shown in equity as a deduction from the proceeds, net of tax. Incremental costs directly

attributable to the issue of equity instruments as consideration for the acquisition of a

business are included in the cost of acquisition.

2.16 Reserves

On 17 May 2017 Pennpetro Energy plc ("Pennpetro") acquired 100% of the issued capital of

Nobel Petroleum UK Limited ("Nobel UK") in a share for share exchange with the

shareholders of Nobel UK's parent company at that time, Nobel Petroleum Ireland Limited

("Nobel Ireland"). This reverse merger was accounted for as a share-based payment

transaction which should be accounted for in accordance with IFRS 2. On the basis of the

guidance in para 13A of IFRS 2, the reverse merger has been treated as a continuation of

the Nobel Group into the Pennpetro Group. The consideration included the issue of new

share capital and the issue of a convertible bond. The total consideration less the share

capital in Nobel UK resulted in the creation of the reorganisation reserve.

The convertible reserve represents the principal value of a mandatory convertible note

issued by Pennpetro Petroleum plc to Nobel Petroleum Ireland Limited in part

consideration for the acquisition of Nobel Petroleum UK under an agreement dated 17 May

2017. The convertible loan note was issued by Pennpetro to Nobel Ireland in the Reverse

merger of Nobel UK. This may be converted into 19 million ordinary shares if certain

conditions are met, at a fixed subscription price of 25 pence. The loan note was partially

exercised in March 2022 for issue of 5,833,333 shares.

The foreign exchange reserve represents effects of currency translation in the year.

2.17 Taxation

The tax expense or credit comprises current and deferred tax. It is calculated using tax

rates that have been enacted or substantively enacted by the Statement of Financial

Position date.

Deferred tax is accounted for using the balance sheet liability method in respect of

temporary differences arising from differences between the carrying amount of assets and

liabilities in the financial statements and the corresponding tax basis used in the

computation of taxable profit. In principle, deferred tax liabilities are recognised for all

taxable temporary differences and deferred tax assets are recognised to the extent that it is

probable that taxable profits will be available against which deductible temporary

differences can be utilised. Such assets and liabilities are not recognised if the temporary

difference arises from goodwill, from the initial recognition (other than in a business

combination) of other assets and liabilities in a transaction, which affects neither the tax

profit nor the accounting profit, or if it does not give rise to equal taxable and deductible

temporary differences.

Deferred tax liabilities are recognised for taxable temporary differences arising on

investments in subsidiaries and associates, and interests in joint ventures, except where

the Group is able to control the reversal of the temporary difference and it is probable that

the temporary difference will not reverse in the foreseeable future. Deferred tax is

calculated at the tax rates that are expected to apply to the period when the asset is

realised, or the liability is settled. Deferred tax is charged or credited in the Statement of

Comprehensive Income, except when it relates to items credited or charged directly to

equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and

liabilities are offset when they relate to income taxes levied by the same taxation authority

and the Group intends to settle its current tax assets and liabilities on a net basis.

2.18 Segment Information

Operating segments are reported in a manner consistent with the internal reporting

provided to the chief operating decision-maker ("CODM"), who is responsible for allocating

resources and assessing performance of the operating segments and making strategic

decisions. The CODM is determined to be the board of Directors.

3. FINANCIAL RISK MANAGEMENT

The Group's activities expose it to a variety of financial risks: market risk (including

commodity and currency risk, and cash flow and interest rate risk), credit risk and liquidity

risk.

Market risk

The Group operates in an international market for hydrocarbons and is exposed to risk

arising from variations in the demand for and price of the hydrocarbons. Oil and gas prices

historically have fluctuated widely and are affected by numerous factors over which the

Group has no control, including world production levels, international economic trends,

exchange rate fluctuations, speculative activity and global or regional political events.

Commodity and currency risk

As the Group's potential earnings will be derived from the sale of oil, the Group's future

revenues and cash flows will be impacted by changes in the prices and available market of

this commodity. Any substantial decline in the price of oil or in transport or distribution

costs may have a material adverse effect on the Group. Commodity prices fluctuate and

are affected by a number of factors including current and expected future supply and

demand, production cost levels in major oil producing centres, as well as macroeconomic

conditions such as inflation and interest rates.

Furthermore, the capital raises of the Company are denominated in Great British Pounds

whereas the Groups assets and liabilities are primarily held in United States Dollars.

Consequently, material changes in the Pound Sterling exchange rate may impact the

Group's ability to raise sufficient funds for operations in Texas. Exchange rates are

impacted by numerous factors beyond the control of the Group, including inflation, interest

rates, and general economic outlook. Notes 16 and 21 detail the impact of adverse and

favourable movements in exchange rates that may impact the Group.

The Directors are confident that they have put in place a strong management team capable

of dealing with the above issues as they arise.

Credit risk

The Group's principal financial assets are cash and cash equivalents, other receivables

and short-term investments.

Credit risk represents the risk of loss the Group would incur if third party operators and

counterparties fail to fulfil their credit obligations. The risk is concentrated between a

relatively small group of operators given the small number of parties involved in oil and gas

exploration and production activities. The Group seeks to mitigate this risk where possible

by assessing the credit quality of the participants and by establishing ongoing and long-

term relationships.

The initial credit risk on cash and cash equivalents and short-term investments is limited

because it is the Group's policy to invest with banks that firstly offer the greatest degree of

security in the view of the Group and, secondly the most competitive interest rates. The

credit risk for short term investments and cash and cash equivalents is considered

negligible since the counterparties are reputable banks.

Other receivables include amounts due from parties that have been involved in the

Gonzales Project since its inception and continue to have an interest in the Group in their

capacity as shareholders in Pennpetro or as lenders to the Group. Other receivables are

therefore initially considered low credit risk.

Other receivables are considered in default if the entity or party has not settled its payment

obligation by the due date set out in the underlying contracts and agreements.

A loss allowance is recognised for expected credit losses on all financial assets held at the

balance sheet date. Given risk mitigation steps undertaken by the Directors, no provision

has been made for losses.

The maximum exposure due to credit risk for the Group on financial assets during the

year was

$391,103 (2024: $336,589). All amounts are expected to be received in full and on time.

Liquidity risk

Cash flow forecasting is performed in the operating entities of the Group and aggregated by

Group Finance. Group Finance monitors rolling forecasts of the Group's liquidity

requirements to ensure it has sufficient cash to meet operational needs, while seeking to

maintain sufficient headroom on its undrawn committed borrowing facilities (note 20) at all

times, so that the Group does not breach borrowing limits or covenants (where applicable)

on any of its borrowing facilities. Such forecasting takes into consideration the Group's

debt financing plans, covenant compliance, compliance with internal Statement of

Financial Position ratio targets, and, if applicable, external regulatory or legal requirements

(for example, currency restrictions).

The table below analyses the Group's non-derivative financial liabilities into relevant

maturity groupings, based on the remaining period at the Statement of Financial Position to

the contractual maturity date. The amounts disclosed in the table are the contractual

undiscounted cash flows.

Group	Less than	Between 1 and Between 2 and
		2 years	3 years
	1 year
		$	$
At 31 March 2025	$
Borrowings (undiscounted)	4,717,031	-	-
Trade and other payables	2,403,955	-	-
At 31 March 2024
Borrowings (undiscounted)	4,604,181	-	-
Trade and other payables	2,129,116	-	-

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

4.1.Use of estimates and judgements

The preparation of Financial Statements in conformity with IFRSs requires management to

make judgements, estimates and assumptions that affect the application of policies and

reported amounts of assets and liabilities, income and expenses. The estimates and associ

ated 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 the judgements about carrying values of assets and liabilities that are not readily

apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in which the estimate is revised if the rev

ision affects only that period, or in the period of the revision

and future periods if the revision affects both current and future periods. In particular,

information about significant areas of estimation uncertainty and critical judgements in

applying accounting policies that have the most significant effect on the amount

recognised in the financial statements are described below.

4.2.Critical accounting judgements

• Recoverability of non-producing mineral leases and capitalised drilling costs

& equipment

Management tests annually whether non-producing mineral leases have future economic

value in accordance with the accounting policies. This assessment takes into consideratio

n the likely commerciality of the asset, the future revenues and costs pertaining and the

discount rates to be applied for the purposes of deriving a recoverable value. In the event

that a lease does not represent an economic drilling target and results indicate that there is

no additional upside, the mineral lease and drilling costs will be impaired.

The Directors

have reviewed the estimated value of the licences and have concluded that no adjustment

to the previously impaired assets should be made. The primary terms of the leases have

expired but did not require renewal whilst there was production from the permitted area.

Production over the permitted area stopped in April 2024 and has not yet recommenced.

• Impairment of investments, and amounts due from subsidiaries

The Directors have assessed at year end whether there is any indication that the carrying

value of the Company's investment in its subsidiaries has been impaired, and whether the

amounts due from its subsidiaries are not recoverable. This assessment included

consideration of the value of the underlying assets held by the subsidiaries, being the

mineral leases, proven oil and gas reserves and Net Revenue Interests. Based on this

review, the directors have concluded that the assumptions, estimates, and judgements

applied in the previous accounting period remain appropriate, and accordingly there has

been no change to the impairment conclusions recognised in the previous accounting

period.

4.3 Critical accounting estimates

• Estimated impairment of producing properties and capitalised drilling costs

& equipment

At 31 March 2025, petroleum mineral leases and capitalised drilling costs & equipment on

petroleum properties have a total carrying value of $Nil (2024: $Nil), (notes 12 and

13). Management tests annually whether the assets have future economic

value in accordance with the accounting policies and has previously placed reliance on the

Competent Persons Report ("CPR") prepared in December 2017 for the City of Gonzales

Lease Area, which is now considered to be out of date.

As detailed in section 4.2, the Whistling Straits Development Area mineral leases have

expired and therefore no drilling or production can take place from this area at present.

Existing development expenditure incurred thus has no value in use and so the carrying

value of these properties is now $Nil.

The Directors are investigating the potential for new lease agreements to be reached and as

such, reinstate the historic value of the properties. However, there is no firm agreement as

at the date of this report and as such, no reinstatement of value can yet be made.

5. REVENUE FROM CONTRACTS WITH CUSTOMERS

Set out below, is the reconciliation of the revenue from contracts with customers with

the amounts disclosed in the segment information (note 6):

Year ended 31 March 2025
	Oil Sales	Other
			Total
	$	$	$
Segments
Type of goods or service
Sale of Oil	30,067	-	30,067
Others *	-	-	-
Total revenue from contracts with customers	30,067	-	30,067
Year ended 31 March 2024	Oil Sales	Other
			Total
	$	$	$
Segments
Type of goods or service
Sale of Oil	486,721	-	486,721
Others *	-	6,284	6,284
Total revenue from contracts with customers	486,721	6,284	493,005

*rent of office space

6. SEGMENTAL INFORMATION

The Group operates in two geographical areas, the United Kingdom and the United States

of America. Activities in the UK are mainly administrative in nature whilst the activities in

the USA relate to exploration and production from oil and gas wells. The reports reviewed

by the Board of Directors that are used to make strategic decisions are based on these

geographical segments.

Year ended 31 March 2025

			Intra-segment
	USA	UK	balances	Total
	$	$	$	$
Revenue	30,067	-	-	30,067
Operating loss	(738,073)	(979,040)	-	(1,717,113)
Capital expenditure	-	-	-	-
Total assets	66,730	133,447	(98,325)	101,852
Total liabilities	5,043,356	1,979,305	98,325	7,120,986

Year ended 31 March 2024

		Intra-segment
USA	UK	balances	Total
$	$	$	$

Revenue	486,721	6,284		-		493,005
Operating loss	(3,204,844)	(12,002,239)		6,439,191	(8,767,892)
Capital expenditure	1,337,392	-	-		1,337,392
Total assets	299,866	14,281	-		314,147
Total liabilities	4,680,647	1,794,418	-		6,475,065

The amounts provided to the Board of Directors with respect to total assets are measured

in a manner consistent with that of the financial statements. These assets are allocated

based on the operations of the segment and physical location of the asset.

Reportable segments' assets are reconciled to total assets as follows:

	31 March 2025	31 March 2024
	$	$
Segmental assets for reportable segments	101,852	314,147
Total assets per Statement of Financial Position	101,852	314,147

7. EXPENSES BY NATURE

Year ended	Year ended 31
31 March 2025	March 2024

Group

	$	$
Legal, professional and compliance costs	493,793	842,948
Foreign exchange loss / (gain)	946	(18,809)
Wages and salaries	435,627	226,222
Other costs	354,703	541,789
Total administrative expenses	1,285,069	1,592,150
Unknown expenditure	-	423,563
Total other losses	-	423,563

8. AUDITOR REMUNERATION

Services provided by the Company's auditor and its associates

During the period, the Group (including its overseas subsidiaries) obtained the following

services from the Company's auditor:

Period ended 31 March 2025 Period ended 31 March 2024
$	$

Fees payable to the Company's auditor for the audit

of the parent company and consolidated financial

Statements

76,536

69,123

9. STAFF COSTS

Group and Company

	2025	2024
	$	$
Wages and salaries	417,939	226,222
Social security costs	14,260	-
Pension contributions	3,428	-
	435,627	226,222

Directors' Emoluments

2025

2024

Olof Rapp

Emoluments

57,402

37,704

Thomas Evans

Emoluments

123,840

37,704

David Lenigas

Emoluments

84,263

150,814

Stephen Lunn

Emoluments

89,292

Robert Menzel

Emoluments

63,142

417,939

226,222

The Group does not employ any full-time employees at its US subsidiaries. Instead, the

Group uses specialist service providers to fulfil its well drilling and land management

requirements.

The average monthly number of staff, including the Directors, during the financial year was

as follows:

	2025	2024
Directors	3	4

10. FINANCE COSTS

	2025	2024
	$	$
	357,969	260,285
Interest expense	357,969	260,285

11. INCOME TAX

The tax charge for the year is $Nil (2024: $Nil). Factors affecting the tax charge for the

period are explained below:

	2025	2024
	$	$
Loss for the year before taxation	(1,717,113)	(8,897,048)
UK Loss before tax multiplied by the UK tax	(429,278)	(2,224,262)
rate 25% (2024: 25%)
Tax effect of:
Fixed asset differences	-	1,777,112
Expenses not deductible for tax purposes	117,253	121,205
Difference in overseas tax rate	(2,295)	-
Movement in deferred tax not recognised	314,320	-
Unutilised tax losses carried forward	-	325,945
	-	-

The Group has UK tax losses of approximately $3,709,687 (2024: $2,944,526) to carry

forward against future profits. The Directors have not recognised a deferred tax asset on

the losses to date due to the uncertainty of recovery.

12. EARNINGS PER SHARE

The calculation of basic and diluted earnings per share is based on the following loss and

number of shares:

	2025	2024
Group:
Loss attributable to equity holders of the parent ($)	1,717,113	8,897,048
Weighted average number of shares (number)	107,863,473	98,600,728
Loss per share (cents)	(1.59)	(9.02)

There is no difference between the basic and diluted earnings per share as the effect would

be to decrease the loss per share.

13. PROPERTY, PLANT AND EQUIPMENT

	Petroleum
Group	(Mineral	Office
	Leases)	equipment	Total
	$	$
			$
Cost
At 31 March 2023	1,484,931	11,699	1,496,630
At 31 March 2024	1,484,931	11,699	1,496,630
At 31 March 2025	1,484,931	11,699	1,496,630

Accumulated Depreciation and
Impairment
At 31 March 2023	-	11,699	11,699
Impairment	1,484,931	-	1,484,931
At 31 March 2024	1,484,931	11,699	1,496,630
At 31 March 2025	1,484,931	11,699	1,496,630
Net Book Amount
At 31 March 2024	-	-	-
At 31 March 2025	-	-	-

Impairment review

This review included consideration of the status and enforceability of the Mineral Leases,

including those at Whistling Straits and COG#1-H, where the primary lease terms have

expired and, in certain cases, production has ceased. The Directors also considered the

continued relevance of the previously obtained Competent Person's Report in supporting

the commercial viability of these assets.

Based on this review, the Directors concluded that the uncertainties and conditions giving

rise to the impairment recognised in the year ended 31 March 2024 remain unchanged.

Accordingly, the assumptions and judgments applied in the prior year continue to be

appropriate, and no additional impairment charge or reversal has been recognised in the

current year.

Further details regarding consideration of the carrying value is contained in note 4.

14. INTANGIBLE ASSETS

Group	Drilling costs
	$	Total
		$
Cost
At 31 March 2023	4,233,890	4,233,890
Additions	1,337,392	1,337,392
At 31 March 2024	5,571,282	5,571,282
Additions	104,142	104,142
At 31 March 2025	5,675,424	5,675,424
Amortisation and Impairment
At 31 March 2023	-	-

Impairment	5,571,282	5,571,282
At 31 March 2024	5,571,282	5,571,282
Impairment	104,142	104,142
At 31 March 2025	5,675,424	5,675,424
Net Book Amount
At 31 March 2024	-	-
At 31 March 2025	-	-

Drilling costs represents acquired exploration and evaluation assets with an undetermined

useful life and are tested annually for impairment. Drilling costs are capitalised on a well-

by-well basis if the results indicate the existence of a commercially viable level of reserves.

At 31 March 2025, the Company held, through its US based subsidiary entities, 100% in the

leasehold petroleum interests centered on the City of Gonzales, southwest Texas.

Impairment review - Intangible assets

The Directors have undertaken a review to assess whether circumstances exist which

could indicate the existence of impairment, considering the following indicators:

• There is uncertainty over the title and enforceability of mineral leases.

• A decision has been taken by the Board to discontinue exploration due to the absence

of a commercial level of reserves.

• Sufficient data exists to indicate that the costs incurred will not be fully recovered from

future development and participation.

Following their assessment, the Directors concluded that the uncertainties and conditions

giving rise to the impairment recognised in the year ended 31 March 2024 remain

unchanged. Further details regarding consideration of the carrying value is contained in

note 4.

15. INVESTMENTS

Investments in subsidiaries

Company

	2025	2024
	$	$
Shares in group undertakings
At 1 April	-	6,440,980
Foreign exchange movements	-	94,328
Impairments	-	(6,535,308)
At 31 March	-	-

The Group comprises of the following subsidiaries:

Pennpetro USA Corp
Registered Office:	8 The Green Ste A, Dover, Delaware
	19901,	USA
Nature of business:	Oil and Gas
Class of share:	Ordinary shares
% of equity shares held	100%
by Company:

Nobel Petroleum USA Inc.
Registered Office:	198	West 13th Street,
	Wilmington, Delaware
	19801,	USA
Nature of business:	Oil and Gas
Class of share:	Ordinary shares
% of equity shares held	100% via Pennpetro USA Corp
by Company:
Nobel Petroleum LLC
Registered Office:	3867	Plaza Tower DR Baton Rouge, Louisiana
	70816-4378, USA
Nature of business:	Oil and Gas
Class of share:	Ordinary shares
% of equity shares held	100% via Pennpetro USA Corp
by Company:
Pennpetro Greentec UK Limited
Registered Office:	20b Wilton Row London SW1X
	7NS, UK
Nature of business:	Dormant
Class of share:	Ordinary shares (£100)
% of equity shares held	100%
by Company:
Pennpetro Green Energy Limited

Registered Office:	20bWilton Row, London SW1X
	7NS, UK
Nature of business:	Dormant
Class of share:	Ordinary shares (£100)
% of equity shares held	100%
by Company:
Pennpetro Greentec Limited
Registered Office:	1 Kalymnou, Q MERITO, 4th Floor, Agios
	Nikolaos, 6037 Larnaca, Cyprus
Nature of business:	IP Holding
Class of share:	Ordinary shares (€1,000)
% of equity shares held	100%
by Company:

Investments in Group undertakings are stated at cost, which is the fair value of the

consideration paid, less any impairment provision.

16. TRADE AND OTHER RECEIVABLES

	Group			Company
	2025	2024	2025	2024
	$	$	$	$
Amounts owed from group undertakings	-	-	98,325	-
Other receivables	-	307,881	-	14,240
	-	307,881	98,325	14,240

The fair value of all receivables is the same as their carrying values stated above.

Group

The carrying amounts of the Group's trade and other receivables are denominated in the

following currencies:

	2025	2024
	$	$
UK Pound Sterling	-	14,240
US Dollar	-	293,641
	-	307,881

The maximum exposure to credit risk at the reporting date is the carrying value of the trade

and other receivables mentioned above. The Group does not hold any collateral as

security.

Company

The carrying amounts of the Company's trade and other receivables are denominated in UK

Pound Sterling.

17. SHORT-TERM INVESTMENTS

Group		Company
2025	2024	2025	2024
$	$	$	$

Short-term investments

Historically, cash has been held in a short term investment account by FHF Corporate

Finance Limited on behalf of Pennpetro. As at 31 March 2025, the balance in this account

was $Nil (2024: $50,699). Due to the Company not having beneficial ownership nor control

of this account, the whole amount was impaired in the financial statements for the year

ended 31 March 2024.

18. CASH AND CASH EQUIVALENTS

	Group		Company
	2025	2024	2025	2024
	$	$	$	$
Cash at bank	101,852	6,266	35,122	41

At 31 March 2025, the Group held cash of $101,852 (2024: $6,266) in banks with a Fitch

credit rating of A (Stable).

19. SHARE CAPITAL AND PREMIUM

Ordinary shares					Share premium
	Number of	Value		Value	Value	Value	Total
Group	shares	£		$	£	$	$
At 1 April 2024		100,299,089	1,002,991	1,277,639	6,679,247	8,443,248	9,720,887

Share issue	12,000,000	120,000	154,256	631,200	812,530	966,786
At 31 March	112,299,089	1,122,991	1,431,895	7,310,447	9,255,778	10,687,673
2025

On 31 July 2024 6,000,000 new ordinary shares were issued at a price of 6 pence per share.

On 14 August 2024 5,000,000 new ordinary shares were issued at a price of 6 pence per

share.

On 5 November 2024 1,000,000 new ordinary shares were issued at a price of 12 pence per

share.

20. BORROWINGS

Group				Company
	2025	2024	2025	2024
	$	$	$	$
Current liabilities
Corporate borrowings	4,717,031	4,345,948	-		-

As at 31 March 2023, the Group had a $5 million Loan Note arrangement with Petroquest

Energy Limited, with a maturity date of 31 December 2024. At the date of signature of these

financial statements, the whole amount is due for payment. On 20 August 2025,

Petroquest Energy Limited issued a Corporate Undertaking within which the majority of the

Petroquest loan would be written off and its security over assets held in Nobel Petroleum

LLC be released. Further details regarding this agreement are included in Note 29.

The annual interest rate is set at 1% below Barclays Bank base rate. In the year to 31 March

2025, $179,980 was charged in interest and the effective interest charge for the year to 31

March 2025 is $143,106 as shown in finance costs (note 10). The undiscounted balance

drawn against this loan note as at 31 March 2025 was $4,669,035 (2024: $4,604,181). The

borrowing facility is secured against certain petroleum leases owned by the Group which

have now expired, and the value of these leases impaired per note 12. The Directors are in

discussion with Petroquest to agree mutually beneficial terms to resolve the issue. The

discounted present value of the loan as at 31 March 2025 equals the undiscounted value

as the maturity date of 31 December 2024 has already passed.

In addition to the above, on 15 October 2024, the Group entered into a new Loan Note with

Frost Bank for $50,000, with a maturity date of 15 October 2025. This Note is denominated

in US dollars and at the reporting date, the outstanding balance was $47,996. The interest

rate on this Loan Note is the U.S. Prime Rate as quote in the Wall Street Journal U.S. Edition

and is accruing daily. The Loan Note is secured against the assets of Pennpetro USA Corp.

Subsequent to the reporting date of these financial statements, on 30 June 2025, the Frost

Bank Loan Note was settled in full. Upon settlement, the security previously granted was

released.

The movement in total borrowings in the year was as follows. Borrowings are denominated

wholly in US Dollars.

Group				Company
	2025	2024	2025		2024

	$	$	$	$
At 1 April	4,345,949	4,018,369	-	-
Interest charge	179,980	211,443	-	-
Adjustment for effective interest	143,106	48,802	-		-
Adjustment for historic	-	67,335	-	-
Directors balance
Drawdown of new	50,000	-
borrowings
Repayments	(2,004)	-
At 31 March	4,717,031	4,345,949	-	-

The fair value of borrowings approximates to their carrying amount. Borrowings are

denominated in US dollars.

The net debt position (total borrowings less cash on hand) as at 31 March

2025 is $4,615,179 (2024: $4,339,683). Settlement of the Petroquest Loan Note has been

agreed since the year end. Further details regarding the settlement are included in Note 29.

	2025	2024
	$	$
Opening net Debt	4,339,683	3,971,577
Net (increase) / decrease in cash	(95,971)	38,059
Net Proceeds of loans	47,996	-
Interest charged	323,086	260,245

Adjustment for historic Directors amount	-	67,335
Foreign exchange movements	385	2,467
Closing Net Debt	4,615,179	4,339,683

Company

The company does not carry any borrowings.

21. TRADE AND OTHER PAYABLES

	Group		Company
	2025	2024	2025	2024
	$	$	$	$
Trade and other payables	1,656,641	1,362,468	1,197,848	994,462
Amounts owed to group undertakings	-	-	34,143	33,308
Facility provision (1)	387,106	529,508	387,106	529,508
Accrued expenses	360,208	237,140	360,208	237,140
At 31 March 2025	2,403,955	2,129,116	1,979,305	1,794,418

(1) The facility provision relates wholly to a balance owed to a creditor with a historic

share subscription facility that the Company drew down on for operations. This balance is

due within one year of 31 March 2025.

Group

The carrying amounts of the Group's trade and other payables are denominated in the

following currencies:

	2025	2024
	$	$
UK Pound Sterling	1,979,307	1,794,418
US Dollar	424,648	334,698
	2,403,955	2,129,116

The impact of a 10% favourable movement in the US Dollar to UK Pound would increase the

carrying value of trade and other payables denominated in UK Pounds by approximately

$197,931 (2024: $179,442). The impact of a 10% adverse movement in the US Dollar to UK

Pound would reduce the carrying value of trade and other payables denominated in UK

Pounds by approximately $197,931 (2024: $179,442).

Company

The carrying amounts of the Company's trade and other payables are denominated in UK

Pound sterling. The carrying amounts of the Company's US subsidiary companies are

denominated in US Dollars.

22. FINANCIAL INSTRUMENTS BY CATEGORY

Group

Company

	2025	2024	2025	2024
	$	$	$	$
Assets as per
Statement of Financial Position
Loans and receivables:
Trade and other receivables (excluding
prepayments)	-	307,881	98,325	14,240
Short-term investments	-	-	-	-
Cash and cash equivalents	101,852	6,266	35,122	41
	101,852	314,147	133,447	14,281
Liabilities per Statement
of Financial Position
Financial liabilities at amortised cost:
Borrowings	4,717,031	4,345,949	-	-
Trade and other payables
(excluding non-financial	2,403,955	2,129,116	1,979,305	1,794,418
liabilities)	7,120,986	6,475,065	1,979,305	1,794,418

23. CONTINGENT LIABILITIES

In the usual course of business, the Group may receive various claims from customers,

suppliers, and other parties. The outcomes of these proceedings are inherently uncertain,

and the ultimate resolution may differ from the assessments made by management.

Based on information presently available, no individual matter is expected to have a

material adverse effect on the Group's financial position.

24. TREASURY POLICY

The Company and Group operate informal treasury policies which include ongoing

assessments of interest rate management and borrowing policy. The Board approves all

decisions on treasury policy.

The Group has financed its activities by raising funds through borrowings set out in note 20

above. There are no material differences between the book value and fair value of the

financial assets.

25. CAPITAL MANAGEMENT POLICIES

The Group and Company set the amount of capital in proportion to its overall financing

structure and manage their capital structure and make adjustments to it in the light of

changes in economic conditions and the risk characteristics of the underlying assets.

The Group considers its equity to be its capital.

The Group and Company's capital management objectives are:

• to ensure compliance with borrowing covenants;

• to ensure the Group's and Company's ability to continue as a going concern; and

• to provide an adequate return to shareholders.

In order to maintain or adjust the capital structure, the Group may issue new shares or sell

assets to reduce debts. The Group will continue making interest payments in accordance

with financial and non-financial loan covenants.

The Group applies itself to taking on critically analysed and early productive asset

acquisitions as a forward de-risk strategy to maintain going concern issues.

26. CAPITAL COMMITMENTS

As at 31 March 2025, the Group had no capital commitment for drilling and equipment

costs contracted but not provided for. The Group had no other capital commitments.

27. RELATED PARTY TRANSACTIONS

Transactions with Directors

An amount of £25,000 was previously received from Olof Rapp via Petroquest Energy

Limited. This amount remains outstanding as at 31 March 2025 and is included in the total

loan note owed to Petroquest Energy Limited.

As at 31 March 2025, Stephen Lunn was a Director of the following companies which are

considered as related parties:

• Petroquest Energy Limited: balance of $4,669,035 owed to Petroquest Energy Limited

as at 31 March 2025 (2024: $4,345,949). Total interest charged in the year to 31 March is

$323,086 (2024: $260,347). Further details of these borrowings are detailed in note 20.

Transactions with Group undertakings

During the year ended 31 March 2025, the Company provided funds to its wholly owned

subsidiary Nobel Petroleum USA of $46,000 (2024: $1,013,447).

After the foreign exchange gains of $552 (2024: loss of $55,081), the total amount due from

the Group as at 31 March 2025 was $46,552 (2024: $Nil).

All Group transactions were eliminated on consolidation.

28. ULTIMATE CONTROLLING PARTY

As at 31 March 2025, there was no ultimate controlling party.

29. EVENTS AFTER THE REPORTING PERIOD

On 30 June 2025, the Frost Bank Loan Note was settled in full. Upon settlement, the

security previously granted was released.

On 20 August 2025, Petroquest Energy Limited issued a Corporate Undertaking within

which the majority of the Petroquest loan note would be written off and its security over

assets held in Nobel Petroleum LLC be released. The balance of the loan will be converted

into a 50% stake in Pennpetro USA Corp. This process has not yet been finalised as of the

date of approval of these financial statements.

On 24 September 2025, the Company entered into an unsecured convertible loan note

agreement with RMD Holdings Ltd to provide the Company with £250,000 for working

capital requirements. Interest shall be payable at 6% per annum and will accrue daily.

On 13 October 2025, the Company entered into a Heads of Agreement relating to a

transaction over the Limnytskyi Oil and Gas Exploration License.

On 28 January 2026, the Company entered into a further secured convertible loan note

agreement with RMD Holdings Ltd to provide the Company with an additional £250,000 for

working capital requirements. Interest shall be payable at 12% per annum and will accrue

daily.

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