Key Update on Audit for 2024/25 accounts

4 March 2026

Pennpetro Energy Plc

("Pennpetro" or the "Company")

Key Update on Audit for 2024/25 accounts

Pennpetro Energy plc, the company focused on developing strategic traditional and transition energy projects, issues an update regarding the status of the audited 2024/25 full year accounts.

Following extensive effort by the Board, Accountants and the Company's auditors, which has caused certain important documents to come to light "last minute", the decision has been made by the Company to make certain that as many legacy issues as possible are dealt with at this audit and to deliver annual accounts as complete and unimpaired  as is practicably possible this time around, giving a clear runway at the next.

The decision to extend the work on the 2024/25 accounts and audit was not taken lightly, but developments in terms of access to previously unavailable documents and information means that  enhanced annual accounts will be made available, albeit slightly later than anticipated. There will likely be a further one-to-two-week delay to the publishing of the audited 2024/25 full year accounts, but those accounts will carry a reduced 'disclaimer of opinion' due to material improvements in data able to be provided by PPP.

The Company worked hard to ensure that these audited accounts would be provided to the Company by the auditors, as RNS'd prior, by Friday, 27^th February. For the avoidance of doubt, this indeed could have been done, on that date, but with more disclaimers of opinion than should now be necessary.

 There have in the past been material accounting documents missing or unavailable to the Company's Accountants and board, all relating to historic issues pre-dating the current Chief Executive and Chair of the Company's appointments. Once located, at last, the Board was faced with an important decision, on Friday and discussions took place until this morning on this topic:

1.   To publish the audited accounts with significant disclaimers of opinion assigned by the auditors - linked to missing documentation that had not been produced, nor was at that moment available to the Company. Additionally, certain additional future funding confirmation from RMD Group, which would further underpin the Company's 'going concern' position would not be provided in time to be included.

This would downgrade the audit and continue to cast a shadow over the Company and still need to be dealt with at a future time. Pushing the button on the audit at that point would have allowed the audited accounts to be published immediately, but in a less than optimum form.

Or.

2.   Finalise more complete accounts, with additional supporting documentation, with much of the missing documentation obtained and incorporated into the audit process. Following conversations with the Auditors and Accountants - should this documentation be presented to them - it would enable the Company to publish the audited 2024/25 accounts without certain significant disclaimers of opinion which would otherwise necessarily be included - improving the outlook for the Company and improving significantly the Company's ability to progress its return to trading, and further strategic development.

Richard Spinks, Executive Chairman added: "Whilst I know that there will likely be those who are disappointed at reading this news among our shareholders, and I am sorry if that is the case, but I would like to stress the importance of the work that has been required to bring Pennpetro back into compliance, that should not have been necessary had previous management been competent. Furthermore, unlike in the past history of this Company, we are not willing to compromise in terms of either corporate governance or compliance, including with regards to audit clarity or completeness.

"Thank you for bearing with us. We have been working tirelessly, for months, to produce as unimpaired, as possible, audited accounts that do not perpetuate historical issues, which would negatively impact the future prospects of the Company. I feel we are achieving this in a very impactful way and are gaining momentum, leaving the past behind and moving forward, stronger.

"This entire process has been incredibly time-consuming, costly and frustrating, given the documents recovered date back to a period long before I and certain fellow directors became involved in Pennpetro and should have been available in the most part, before the last audit.

"This has been all the more painful, knowing that the documents existed, and could have been received in a timely manner, benefitting the previous audit and by turn, this one.

"This short delay is in the best interests of the Company and shareholders. We are mindful of the fact that the current suspension has gone on for too long already, whilst it need never have happened at all. If we are able to publish the audited accounts sooner, than later, which may be the case, we will certainly do so."

ENDS

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