1. INTRODUCTION

The Board of Directors of Velesto Energy Berhad ("VEB") is pleased to announce that Velesto Drilling Sdn. Bhd. (“VED”), a wholly-owned subsidiary of Velesto Malaysian Ventures Sdn. Bhd. (“VMV”), which in turn is a wholly-owned subsidiary of VEB (collectively  referred to as “VEB Group”), has received a Letter of Award from Jadestone Energy (Malaysia) Pte Ltd (hereinafter referred to as “Jadestone”) for the Provision of Jack Up Drilling Rig for East Belumut Phase 9 Infill Drilling (“Contract”).  

2. DETAILS

The Contract is for the Provision of Jack Up Drilling Rig for Jadestone, whereby VEB Group will assign its NAGA 8 through VED for this Contract. The Contract is for 4 months, commencing from March 2026. The Contract value is estimated to be in the region of USD16,498,734.00.

NAGA 8 is a premium independent-leg cantilever jack-up drilling rig with drilling depth capability of 30,000 feet and has a rated operating water depth of 400 feet.

3. INFORMATION ON PARTIES

3.1 Information on VED

VED was incorporated in Malaysia under the Companies Act, 1965 on 29 July 2003 and is deemed to be registered under the Companies Act 2016. VED is principally involved in the offshore drilling business and operations and other engineering services for oil and gas exploration, development, and production in Malaysia and overseas.

3.2 Information on Jadestone

Jadestone Energy (Malaysia) Pte Ltd, a private company limited by shares incorporated under the laws of Singapore with company registration number 202302000006 (995855‑K) and its registered office at 3 Anson Road, #13‑01, Springleaf Tower, Singapore 079909. The principal activity of Jadestone is the development and production of oil and gas reserves.

4. FINANCIAL EFFECTS

The provision of the above-mentioned services to be provided by VED is expected to contribute positively towards the earnings and net assets of VEB Group during the duration of the Contract from March 2026 to July 2026.

5. RISK ASSOCIATED WITH THE CONTRACT

The risks associated with the execution of the Contract are operational and execution risks, which will be mitigated and/or managed by VED, a company with a proven successful track record of undertaking drilling programmes.

6. CONFIDENTIALITY

The contents for this announcement are in accordance with the terms of the Contract, which the VEB has received the approval from Jadestone for the release of Announcement today.

7. DIRECTORS AND SUBSTANTIAL SHAREHOLDERS INTEREST

None of the Directors and/or the substantial shareholders of VEB Group and VED and/or persons connected with the Directors and/or substantial shareholders have any interest, direct or indirect in the above Contract.

8. STATEMENT BY DIRECTORS

The Board of Directors of VEB is of the opinion that the award of the Contract through VED is in the best interests of VEB Group.

This announcement is dated 25 February 2026.