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 PETRONAS Carigali Sdn Bhd (hereinafter referred to as “PCSB”) for the Provision of Jack-Up Drilling Rig for PCSB 2026-2030 (“Contract”).

2. DETAILS

The Contract is for the Provision of Jack Up Drilling Rig for PCSB, whereby VEB Group will assign its NAGA 2 through VED for this Contract. The Contract is for five (5) years, commencing from February 2026. The Contract value is estimated to be in the region of USD157 million.

NAGA 2 is an independent-leg cantilever jack-up drilling rig with drilling depth capability of 30,000 feet and has a rated operating water depth of 350 feet.

3. FINANCIAL EFFECTS

The provision of the above-mentioned services to be provided by VED are expected to contribute positively to the earnings and net assets of VEB Group during the Contract period from 2026 to 2030.

4. 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.

5. CONFIDENTIALITY

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

6. 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.

7. 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 2 March 2026.