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 Hibiscus Oil & Gas Malaysia Limited (hereinafter referred to as "HML") for the Provision of Jack-Up Drilling Rig for HM 2026 Drilling Campaign ("Contract").
2. CONTRACT DETAILS
The Contract's firm scope of work covers the drilling services of eight (8) plug and abandonment ("P&A") wells and one (1) exploration well,with up to seven (7) optional wells, at HML's discretion. The operations are scheduled to commence in May 2026. For the performance of this Contract, VED will be utilizing a third-party jack-up rig under a charter agreement.
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.
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, for duration of the Contract, commencing from May 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.
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 15 May 2026.