Dwayne John Davis (42) was sentenced to five years' imprisonment in 2016 after being found guilty of sex and drug offences.
Despite claiming innocence initially, the man had admitted his offending since being behind bars.
At his most recent Parole Board hearing this month, however, he sought to clarify his role in the supply of drugs to minors.
''Mr Davis told the board that he did not actually supply the drugs to the children. He said that they were freely available in his house and he accepts that he allowed the victims and his own children to help themselves,'' panel convener Mary More said.
''By further explanation he said he had oxycodone prescribed to himself and he grew cannabis which he kept in boxes in his bedroom. He did not stop anyone else having access to them.''
At trial, the court heard Davis was at his home with the victim, who was under the influence of alcohol and cannabis.
He carried the boy to bed under the guise of putting him down to sleep, but the boy woke with Davis lying behind him with his hand down his pants.
The judge, at sentencing, described the sexual offending as predatory, self-gratifying and involving an element of grooming.
There were 200 occasions in which class C drugs were supplied and 10 occasions in which class B drugs were supplied, the court heard.
Despite being only halfway through a 12-session programme with a psychologist, Davis argued he should be granted early release.
''Mr Davis seemed quite confused when the board spoke to him about the need to complete his rehabilitation,'' Ms More said.
The prisoner said he could continue counselling while in the community.
''Mr Davis is doing well, but the board considers that he is only partway through his rehabilitation and as such he would be an undue risk,'' she said.
Ms More declined parole and asked the psychologist to provide comment on the man's risk, his treatment requirements and his release proposal.
Davis will see the Parole Board again in January.
His sentence end date is June 2021.
