CHK Oil Provides Detailed Rationale and Timeline for Auditor Transition to HLB Hodgson Impey Cheng

CHK Oil Limited has released a supplemental announcement clarifying the sequence of events and governance considerations behind its recently approved auditor rotation from Forvis Mazars CPA Limited to HLB Hodgson Impey Cheng Limited (HLB).

The review process began in early May 2026 when the Group solicited audit proposals from four firms, including incumbent auditor Forvis Mazars and challenger HLB. After evaluating submissions against criteria such as tenure, independence, audit quality, resource allocation, industry expertise, fee competitiveness and Accounting and Financial Reporting Council (AFRC) guidelines, the Audit Committee voted on 29 May 2026 to recommend an auditor rotation.

Key milestones: • Early May 2026 – Audit tender launched; four firms invited. • 29 May 2026 – Audit Committee advised Board to rotate auditors; Forvis Mazars asked to retire at the 26 June AGM. • 1 June 2026 – HLB presented its audit plan and fee proposal; Audit Committee endorsed HLB. • 26 June 2026 – Shareholders approved HLB’s appointment by ordinary resolution at the AGM.

Auditor track record: • Cheng & Cheng Limited served from FY2012–FY2019 (eight years), retiring at the 2020 AGM. • Forvis Mazars served from FY2020–FY2025 (six years), retiring at the 2026 AGM.

The company does not impose a fixed auditor rotation period; instead, the Audit Committee conducts periodic reviews and generally views a six-year cycle as conducive to maintaining independence and audit quality. The Board emphasised that the current change stems solely from corporate-governance considerations, not from any disagreement with Forvis Mazars on accounting policies, disclosures, audit scope or findings. Publicly available records show no significant regulatory breaches by HLB or its engagement team in the past three years.

The Audit Committee concluded that HLB’s proposed audit scope, timetable and resource commitment, alongside a more competitive fee, meet the Group’s requirements without compromising audit quality. The Board expects the appointment to reinforce shareholder and investor confidence in CHK Oil’s financial reporting.