CUE Energy Resources Ltd

Final dividend of 0.25c per share (about A$1.75m) declared, unfranked, record date 2 October 2026, payable 15 October, making FY26 total 0.5c. Cue also cites five wells planned for 1H FY27 and a GA-1 exploration well expected within months.

dividend declaration

Cue's 2P reserves fall to 4.5 MMboe from 5.5, after 0.6 production and 0.4 net downgrades, using Horizon's review processes. About 2.4 MMboe of Paus Biru/Jeruk 2C resources are removed on Cue's stated Sampang exit in Dec 2027. A$3-5m impairment and ~A$4m Paus Biru write-off expected.

resource reserve update

Cue confirms PV14 spudded 25 July 2026 at Palm Valley, where it holds 15%. First gas sales are targeted for October 2026. This follows the April NT Government gas deal. Cue says a Mahato two-well program is underway.

drilling spud

Horizon chairman Bruce Clement is appointed Cue chair, replacing McGregor. Hood stays Lead Independent Director, Bishop takes the Audit and Risk Committee, and Beament chairs the new Commercial Committee. Boyall remains CEO.

director officer appointment

After Horizon's takeover completed (57.03% interest), five Cue directors including chairman McGregor resigned. Four Horizon executives joined: Bruce Clement, Richard Beament, Gavin Douglas and Kyle Keen. Hood, Bishop and Malcolm stay, handing board control to Horizon.

director officer appointment

Horizon completes buying Echelon's 139.9m Cue shares (about 19.90%) under the pre-bid deal. The offer closed 19 June, leaving Horizon with a 57.06% relevant interest in Cue. This confirms Horizon's control of Cue.

business combination

Horizon declared its Cue offer unconditional and brought payment forward to 2 July 2026, with the offer still closing 19 June. Horizon held 52.66% of Cue, and the consideration stayed at 0.5625 Horizon shares plus A$0.008 cash per share.

business combination

Horizon declares its offer best and final (0.5625 Horizon shares plus A$0.008 cash per Cue share), not to rise without a rival bid. It holds 52.21% (366.5m shares). Offer closes 19 June 2026 unless extended.

business combination

Horizon said Echelon had accepted its offer for all its Cue shares other than those under the pre-bid agreement. That took Horizon to 359,795,314 shares, 50.46% fully diluted, and satisfied the 50.1% minimum acceptance condition. Horizon said it knew of no rival bid and warned of reduced liquidity for holders who do not accept.

business combination

Horizon notifies that the 50.1% minimum acceptance condition of its Cue takeover offer has been fulfilled. The offer is now free of that condition, following Echelon's acceptance.

business combination

Horizon says the Power and Water letter of intent for new Mereenie gas has expired without agreement. The joint venture suspends the two Mereenie infill wells, cutting Horizon's 2026 capex by about US$5m, and will seek other buyers. Existing supply to 2030 is unaffected.

material agreement termination

The Palm Valley joint venture signed a gas supply agreement with the NT government for up to 10.5 PJ net to Echelon's group (3.2 PJ to Cue) to end-2034, take-or-pay. A final investment decision was made on two wells; the Ensign 974 rig is contracted, with drilling from mid-year.

material agreement

Cue signs a binding gas sales agreement with the NT Government: up to 21 PJ gross (3.2 PJ net to Cue) to end-2034, fixed price with CPI, take-or-pay. Palm Valley partners approve two new wells, drilling from mid-2026. Replaces the Mereenie-linked Power and Water LOI.

material agreement

The Takeovers Panel declines to conduct proceedings on Cue's application against Horizon's bid and the Echelon pre-bid deal, finding no reasonable prospect of unacceptable circumstances. Echelon's stated intention to accept is no longer held back by the Panel process.

regulatory community update

Cue's independent board committee unanimously recommends shareholders REJECT Horizon's offer by taking no action. Reasons include an inadequate premium, bad timing with Horizon shares at a 10-year high, dilution, Horizon's debt, heavy conditions and tax rollover only at 80% acceptances.

business combination

The Takeovers Panel says Cue has applied to it over Horizon's bid and Horizon's pre-bid deal with Echelon, which holds 49.93% of Cue. Cue alleges an undisclosed association and a chilling effect on any rival bid, and seeks to stop Echelon accepting. No decision yet.

business combination

Horizon Oil announces an off-market takeover bid for Cue: 0.8c cash plus 0.5625 Horizon shares per Cue share, about 14.3c at 27 Feb prices, a 10% premium. Horizon already holds 19.99% via a pre-bid deal with Echelon at 11.5c.

business combination

Half-year to 31 Dec 2025: revenue fell 5.2% to A$25.7m, profit rose 17.8% to A$5.1m, cash A$11.2m, no debt. Interim dividend cut to 0.25c (from 1.0c a year earlier), as cash is directed to the four NT wells.

half year report

Mereenie and Palm Valley ventures signed a binding letter of intent with NT Power and Water for four wells (two each field), drilling from mid-2026, with conditional gas terms to 2034. Builds on the October McArthur River deal; binding sales agreements are still to be signed.

material agreement

Mereenie venture signed a gas deal with McArthur River Mining for 2026-2027: 0.37 PJ firm gas net to Cue (7.5%), take-or-pay, plus as-available gas, CPI-indexed. Adds new gas sales after the lapsed Arafura deal, though Cue's share is small.

material agreement

Reserves at 1 July 2025: Cue's net 2P is 5.5 mmboe, down from 6.3 mmboe a year earlier, which the statement describes as flat apart from production. Maari and Mereenie rose, Sampang fell on faster decline. Mahato Telisa adds 0.8 mmboe contingent resource.

resource reserve update

New Zealand approved a 10-year extension of the Maari permit (Cue 5%) to December 2037, resolving the open extension request. August production averaged 5,600 bopd, the highest month in over five years, after workovers restored the offline wells.

regulatory community update

FY2025: revenue up 10.4% to A$54.8m, but net profit fell to A$6.3m from A$14.2m. Cash was A$10.8m with an unmodified audit. A 0.5 cent final dividend is payable 25 September 2025, after the 1 cent interim.

annual report

Cue confirms the conditional Arafura gas agreement lapsed, as Arafura's final investment decision was not made. This ends the extended condition from February. The joint venture, in which Cue holds 7.5%, will market the 2028 firm gas to other customers.

material agreement termination

Cue relays that WM30 is online at over 4 TJ/d, beating the 3 TJ/d pre-drill figure. With WM29, the wells add about 9 TJ/d (versus up to 6 TJ/d expected), taking Mereenie capacity to 32 TJ/d. Cue holds 7.5%. Largely repeats the operator.

production update

Half-year to 31 Dec 2024: revenue A$27.1m (down 7.4%), profit after tax A$4.3m (down 52.2%), cash A$17.1m. A 1 cent per share interim dividend (about A$7m) was declared, payable 26 March 2025. Profit hit by higher production costs and lower revenue.

half year report

Central says WM29 began flowing to sales on 20 January 2025, testing about 7 TJ/d over two hours, more than double the 3 TJ/d pre-drill expectation. Output is limited to 6 TJ/d by the wellhead equipment. WM30 is drilling, with sales targeted for early March.

well test result

Cue reports Mereenie WM29 began gas sales on 20 January 2025, testing about 7 TJ/d and held at 6 TJ/d by equipment limits, double pre-drill expectations. Should lift field capacity to the 30 TJ/d target. Cue holds 7.5%; WM30 drilling.

well test result

Operator Central says WM29, the first of two Mereenie development wells, spudded on 5 December 2024. The wells aim to restore capacity above 30 TJ/d and produce at least 25 PJ gross, with extra gas sellable under the NT Government agreement.

drilling spud

The PC-01 exploration well in the Mahato PSC, drilled to 5,800 ft, found no hydrocarbons in testing of the Bekasap formation despite zones of interest on logs, and was plugged and abandoned. A dry hole for the exploration well flagged in the quarterly.

drilling result

The PC-01 exploration well in the Mahato PSC spud on 4 November 2024, targeting the Bekasap sandstone at about 4,800 ft, with a depth of 5,600 ft expected. Cue holds 11.25%. A near-field test beside the PB field, which makes over 6,000 bopd gross.

drilling spud

Cue declares a 1 cent final dividend (about A$7m), paid 26 Sept 2024, on top of the 2 cent special paid in April, so A$21m is returned for FY2024. Production was 631 mboe; 10 development wells planned in FY2025.

dividend declaration

Cue confirms the Mereenie JV approved WM-29 and WM-30, about 30 days each to roughly 1,500m, drilling late 2024 or early 2025. Cue's 7.5% share is $2.4m, funded from cash. This resolves the open WM29/WM30 planning thread.

drilling scheduled

Cue's Mereenie and Palm Valley JVs sign six-year gas sales agreements with the NT Government for 2025-2030, up to 3.6 PJ to Cue (2.5 PJ Mereenie, 1.1 PJ Palm Valley), take-or-pay, fixed price with CPI escalation. Arafura supply deferred to 2028. This answers the earlier call for gas buyers.

material agreement

SKKMigas approves Mahato Phase 2: 14 more development wells in the PB field, with the first already started and full program expected in 12-18 months. Field is above 6,000 bopd gross; costs are recoverable under the PSC. Cue interest subject to a pending transfer to Riau Petroleum.

drilling scheduled

Half-year to December 2023: revenue up 21.7% to A$29.3m and profit up 33.8% to A$9.07m. Cash is A$23.17m with the NZOG loan fully repaid. The board declared a 2-cent special dividend, about A$14m, the first dividend in this history.

half year report

Cue declares a 2-cent unfranked special dividend (about A$14m), record date 22 March, paid 5 April 2024. It also adopts a policy of reviewing a dividend each half-year, resolving the capital management review that began in 2023.

dividend declaration

Arafura Rare Earths signs gas deals with the Mereenie JV, including Cue, for up to 27.4 PJ from 2026 over three years, with a two-year extension option. Cue's share is 2.06 PJ. Take-or-pay, but conditional on Arafura's Nolans project meeting conditions by 30 June 2024, including a final investment decision.

material agreement

Cue repays the remaining A$4m owed to NZ Oil & Gas early and is now debt free. The A$7m loan from June 2022 is fully repaid (A$3m in June 2023). Management says free cash flow funds the Mereenie and Mahato drilling programs.

debt financing

Cue confirms the South32 Cannington gas deal for Mereenie gas is extended 12 months, with 1.46 PJ in total aggregated JV supply in 2025. Firm take-or-pay, renegotiated pricing; conditional on transport agreements by 30 June 2024. Extends the two-year deal that began in 2023.

material agreement

Cue confirms the Mereenie JV (Cue 7.5%) signed a 12-month MOU with Twin Bridges to progress a helium recovery unit, targeting up to 60,000 scf/day. If it proceeds, Twin Bridges would design, build, fund and own the plant. Not yet a final investment decision.

material agreement

Operator Central Petroleum signs a non-binding MOU with US firm Twin Bridges to progress a helium recovery unit at Mereenie toward a final investment decision. Twin Bridges would fund and own it, with operating profit split 50/50 with the JV. Cue holds 7.5%.

material agreement

BA-01 is a dry hole: four zones in the Duri and Bekasap formations tested no hydrocarbons at 2,800 ft, and the well is plugged and abandoned. Ends the exploration well expected to rival the PB discovery. Focus returns to PB development drilling.

drilling result

BA-01 exploration well spudded 28 July 2023 after delays, with surface hole drilled to about 100 ft. It is expected to reach 2,800 ft in around 20 days. Best-case oil in place is 93 mmbbl; Cue holds 12.5%.

drilling spud

Cue's net 2P reserves rise 14% at Palm Valley to 3.8 PJ (0.6 mmboe) after the PV-12 well, and 13% at Dingo to 6.4 PJ (1.0 mmboe). Palm Valley contingent resource of 2.1 PJ falls to 1.4 PJ as some moves into reserves. Cue holds 15%.

resource reserve update

Cue says exploration well BA-01 in the Mahato PSC (Cue 12.5%) is preparing to drill this quarter, subject to environmental clearances. Best-case prospective oil in place is 93 mmbbl; the operator rates chance of success at 38%. First Mahato exploration well since the PB discovery.

drilling scheduled

Cue signs a two-year, fixed-price, take-or-pay gas deal with South32 Cannington from 1 January 2023 for 0.16 PJ from Mereenie, within up to 2.19 PJ in total. It sells more previously uncontracted Mereenie gas, following the Shell deal.

contract award

Palm Valley-12 was tied in and began flowing sales gas on 28 November at a stable ~10 TJ/d (gross), above pre-drill expectations. Field output should approach the 15 TJ/d plant maximum in mid-December. Cue holds 15%.

production update

NZOG relays that Palm Valley-12 ST2 flowed about 11.8 mmscfd on a 187-minute rig test and is being completed as a producer. The rate is similar to Palm Valley-13 in 2018. This is the last weekly update; Cue holds 15%.

flow test result

Central reports an interim test of the Palm Valley-12 P1 sidetrack at 2,598m flowed gas at about 7 TJ/d, with about 440m of hole still to drill. After the failed deeper P2/P3 target, this supports the P1 appraisal. Cue holds 15%.

flow test result

Cue signs a one-year, fixed-price, take-or-pay gas deal with Shell Energy from 1 January 2025 for 0.27 PJ from Mereenie, part of up to 3.65 PJ in total. It sells some previously uncontracted Mereenie gas; gas transport agreements must still be signed.

contract award

Cue reports FY22 profit after tax of A$16.07m (FY21 loss A$12.74m) on revenue of A$44.4m, up 98%. Cash is A$23.22m, with A$7m owed to NZOG. No dividend. Amadeus assets contributed A$8.21m revenue from 1 October 2021.

annual report

The Palm Valley-12 P2/P3 lateral, at 2,431m, hit formation water with no significant gas shows, so the joint venture stopped drilling it. The section will be plugged and a P1 sidetrack prepared. This ends the deeper exploration try; Cue holds 15%.

drilling result

Central and partners dropped the deep 3,560m Arumbera target at Palm Valley-12 after difficult drilling. They will instead sidetrack into the shallower P2/P3 at 2,061m, and defer Dingo Deep. Costs stay within the $40m carry cap; spare capital may go to Mereenie or Palm Valley production.

joint venture update

New Mahato well PB-18 is producing about 1,000 bopd, the first of the 14-well campaign approved on 14 June. Field output is about 5,000 bopd, with PB-17 next; Cue holds 12.5%, and oil is sold at Dated Brent less $1-2/bbl.

production update

Cue signed a A$7m, two-year unsecured loan from NZOG (50.04% holder) at 10% fixed plus a 1.5% fee, completing the earlier term sheet. Cue estimates A$12.2m remaining Amadeus drilling commitment, A$13m for Mahato and A$15m for Paus Biru. Banks were not available.

debt financing

Indonesia's regulator approved 12 more oil production wells in the Mahato PB field, taking approved production wells to 20 plus 3 water injectors. PB-18 has started; the program should take 12-14 months. Cue holds 12.5%. This resolves Cue's thread on government approval.

regulatory community update

Central flags a possible extra gas target, Pacoota-3, in the Palm Valley-12 program, which could change timing and costs. Well costs already exceed forecasts by about A$3.1m gross to 30 April. Cue and NZOG carry Central's share.

joint venture update

Through the Mereenie JV, Cue can now sell uncontracted gas into east coast spot markets. The first sale on 3 May achieved over A$13/GJ ex-field, with hub prices above A$16/GJ. About 85% of Mereenie gas is already contracted, so only the uncontracted remainder benefits.

material agreement

March quarter: cash receipts A$10.3m, cash up A$2.8m to A$13.8m. Mahato PB-08 stopped producing and became a water injector; PB-09 ended at 400 bopd. Mahato has entered profit-sharing, lowering Cue's net share. Cue agreed a term sheet for a A$7m NZOG loan, conditional on NZOG's equity raise.

quarterly activities report

NZOG announces Palm Valley-12 began drilling on 17 April 2022, targeting the Arumbera Sandstone about 1,300m below known gas, to about 4,144mMD in roughly 61 days. If unsuccessful it will be sidetracked into the Pacoota. Cue holds 15%. Spud follows the one-month rig delay.

drilling spud

Cue raised Mahato PB field reserves: net 2P rose 322% to 1.4 mmbbl and net 1P rose to 1.1 mmbbl, with gross 2P at 20.9 mmbbl. Cue holds 12.5% and plans regular reserve reviews as drilling continues.

resource reserve update

Half-year to 31 Dec 2021: revenue up 91.4% to A$18.0m and net profit A$8.2m, versus a A$14.8m loss a year earlier. Cash was A$11.1m. Growth came from Mahato and three months of the Amadeus assets bought 1 Oct 2021.

half year report

Mahato PB-08 is online at about 600 bopd from a new horizon, Bekasap A, completing phase 1. PB field output is about 5,600 bopd. The operator plans 5 more northern wells, the first possibly starting in early February. Cue holds 12.5%. Resolves the PB-08 thread.

drilling result

Cue signs its first gas supply agreement since the Amadeus acquisition: up to 0.95 PJ of firm gas to NT Power and Water over four years from 1 January 2022, take-or-pay, fixed price with CPI escalation. Part of the 12.6 PJ aggregate; more sales are being marketed.

material agreement

NZOG confirms a new gas supply agreement with the Northern Territory's Power and Water Corporation. Gas from NZOG, Macquarie Mereenie, Cue and Central totals 12.6 PJ over 4 years from 1 January 2022. It sells part of the extra Mereenie capacity from the new wells.

material agreement

Mahato PB-06, the sixth PB field production well, is online at about 800 bopd. Field output is now about 4,400 bopd, up from 3,600. Two more wells, PB-07 and PB-08, are planned to complete phase 1. Cue holds 12.5%.

drilling result

Cue completed its Amadeus Basin purchase on 1 October: 7.5% of Mereenie and 15% each of Palm Valley and Dingo, ending the deal announced in May. It paid A$8.9m and will fund Central's costs up to A$12m. Fields carry 4.1 mmboe 2P reserves.

asset acquisition disposition

Cue confirms the last third-party approvals are in and all conditions are met for buying 7.5% of Mereenie and 15% each of Palm Valley and Dingo. Completion is set for 1 October 2021, ending the approvals phase announced in May.

asset acquisition disposition

Central reports Mereenie WM28 completed as a dual-zone gas producer with good flow tests, tie-in due mid-September. The JV dropped the WM27 Pacoota-3 sidetrack because of hole instability, resolving that open thread. Stairway sandstone flows could eventually double Mereenie 2P reserves. Cue's interest is not yet completed.

drilling result

June quarter revenue was A$5.7m, with cash of A$17.6m. Oil output rose 46%, and Mahato's PB field was certified at 5.8 mmstb gross 2P (0.72 net to Cue at 12.5%), settling the pending reserves assessment. Shareholders approved the NZOG cross-security; Amadeus completion expected this quarter.

quarterly activities report

Central Petroleum agreed to sell 50% of its Amadeus Basin producing assets (Mereenie, Palm Valley, Dingo) to NZOG entities for about A$85m total value. Cue's subsidiaries would hold 30% of that 50% interest, NZOG's 70%. Completion is expected in Q3 2021, subject to conditions including approvals; Cue's own cost is not stated in the excerpt.

asset acquisition disposition

Cue signs a deal to buy 7.5% of Mereenie and 15% each of Palm Valley and Dingo from Central Petroleum. It pays A$8.7m cash plus up to A$12m of carried costs, from existing cash and cash flow. It adds 4.4 mmboe of 2P reserves, over 350% more, and a fourth revenue stream. Conditions include FIRB and NZOG shareholder approval.

asset acquisition disposition

Cue received its first Mahato oil revenue, about US$397,000 for its share to March 2021. Field output is now about 2,500 bopd from three wells, with two more wells planned. Mahato becomes Cue's third revenue source alongside Sampang and Maari.

production update

Commercial oil production started at the PB field in Mahato PSC (Cue 12.5%), with PB-1 at about 600 bopd, and the dispute with partners was settled. Cue pays about US$380,000 plus a roughly US$300,000 cash call. Three more development wells are planned.

production update

Ironbark-1 in WA-359-P (Cue 21.5%) has been plugged and abandoned and the rig left on 11 January 2021. The CEO called the result disappointing. This ends the Deep Mungaroo test the company had funded; cash remains and Cue is seeking new opportunities.

drilling result

Ironbark-1 is a dry hole. It reached 5,618m, intersecting the primary Mungaroo target at 5,275m with no significant hydrocarbon shows in any target sand. The well will be plugged. This ends the 21.5% 'company-changing' exploration bet; implications for the play need further analysis.

drilling result

Ironbark-1 began drilling on 31 October 2020, targeting the Ironbark gas prospect (best estimate 15 Tcf prospective) at about 5,335m. Expected to take 70-90 days. Cue holds 21.5% and calls it potentially company-changing. It is a pure exploration well, to be plugged afterwards.

drilling spud

The Paus Biru development plan was approved by SKK Migas, with a certified 44.9 Bcf gross 2C contingent resource (6.7 Bcf net to Cue's 15%). A final investment decision is expected mid-2021 and first gas late 2022. This follows the December 2018 discovery.

resource reserve update

NOPSEMA approved the Ironbark-1 Environment Plan, clearing the main permit hurdle. Drilling to about 5,500m is expected from October 2020, depending on the Ocean Apex rig's current job. Cue (21.5%) is fully funded, using partner carries and about US$8m escrowed.

regulatory community update

Indonesian authorities announced a 61.8 million barrel oil discovery from Mahato PB-2, where Cue holds 12.5%. Cue reads this as a P50 oil-in-place estimate, not recoverable oil. It still has no operator data, and the exclusion dispute continues.

drilling result

PB-1 has been drilled and cased to total depth, results pending. Operator Texcal issued a default notice over an unpaid cash call, which Cue disputes, and Cue says it is not receiving required well information. Dispute opens in the Mahato venture.

joint venture update

Mahato PB-1 exploration well began drilling on 19 November 2019, planned to 1,750m and about a week to the Bekasap target. Cue holds 12.5%. This is the first drilling in the permit, long delayed by partner issues.

drilling spud

Horizon Oil notes that Jadestone has agreed to buy OMV's 69% of Maari, with completion expected in H2 2020. Cue's 5% is not sold, but the operator would change from OMV to Jadestone, subject to partner acceptance and approvals.

asset acquisition disposition

Ironbark agreements complete: BP is now operator of WA-359-P, with Cue 21.5%, Beach 21% and NZOG 15%. Cue received about A$1.8m and is carried for about US$11m of well costs, with US$8m escrowed. Ironbark-1 is planned for late 2020.

farm in farm out completion

NOPTA grants a 24-month suspension and extension of WA-359-P to 25 April 2021, which was the last material condition of the Ironbark agreements. Title transfers remain. This resolves the permit-expiry risk; Ironbark-1 is expected late 2020.

regulatory community update

BP, as operator for Cue, signs the Ocean Apex rig to drill Ironbark-1, now expected late 2020. Cue has escrowed US$8.08m and shareholder approval is done. Only NOPTA's permit extension remains. Continues the October 2018 funding agreements.

contract award

Gas discovery at Paus Biru-1: 13.8 MMscfd maximum flow rate and about 29 metres of net gas pay in the Mundu reservoir. A Plan of Development tied into Oyong facilities will be prepared. Resolves the drill; Cue holds 15%.

drilling result

Cue agrees to sell 15% of WA-359-P to majority holder NZOG, which also carries 2.85% of Cue's well costs and pays A$642,600 of past costs. NZOG gets a 5.36% option in WA-409-P. Ironbark-1 is now fully funded for early 2020, subject to a vote by shareholders other than NZOG.

farm in farm out agreement

Cue, BP, Beach and NZOG sign a conditional agreement to form a joint venture to drill Ironbark-1, with BP as operator. Cue would keep 21.5% with US$11.3m of carried funding, paying the rest from escrowed cash. Completion is targeted for Q2 2019.

joint venture update

Paus Biru-1 operations began 18 October 2018 with the conductor installed; drilling expected within 24 hours. The Sampang PSC well targets Mundu reservoirs and should reach 650m in about two weeks. Cue holds 15%; the well will be plugged and abandoned in all outcomes.

drilling spud

Regulator approves a 12-month suspension and extension of WA-359-P to 25 April 2019, clearing the permit expiry risk. Ironbark-1 is targeted for 2019. BP's option and the Beach deal remain unexercised; 25% of well cost is still unfunded.

regulatory community update

Grant Worner retires as chairman and director after two years. Alastair McGregor, a New Zealand Oil & Gas director and O.G. Oil & Gas chief executive, becomes chairman, with Peter Hood as lead independent director. Leadership now sits with Cue's majority holder.

director officer appointment

Six new non-executive directors join the board, proposed by 50.04% holder New Zealand Oil & Gas, four of them its own directors who take no fees. Melanie Leydin steps off the board but stays CFO and company secretary. NZOG's board control is now stronger.

director officer appointment

The Sampang joint venture approves the Paus Biru-1 exploration well, planned for Q4 2018 to 650 metres, with Santos operating. Cue holds 15%. The well follows earlier 2018 and 2019 timing hints. If successful, it would add reserves and extend field life.

drilling scheduled

Beach Energy agrees to take 21% of WA-359-P, free-carry Cue for 4% of the Ironbark-1 well and reimburse A$900,000 of past costs. It also gets an option over 7.5% of WA-409-P. With BP's option, 75% of well funding is conditionally secured.

farm in farm out agreement

Cue becomes operator and 100% holder of WA-389-P as BHP Billiton withdraws, lifting its interest from 40%. Cue sees Triassic gas leads similar to Ironbark and plans to seek suspension of the permit year before deciding on a Year 5 well commitment.

asset acquisition disposition

From 1 July 2017 Matthew Boyall, Commercial Manager since 2013, becomes permanent CEO on A$300,000 base. Worner reverts to non-executive chairman. CFO Andrew Knox leaves after 22 years; Melanie Leydin becomes CFO/Company Secretary. Resolves the interim CEO question.

director officer appointment

Cue paid US$6.8m to settle a Sampang Jeruk project reimbursement dispute, active since late 2011 and decided by arbitration. US$4.6m had been accrued; the remaining US$2.2m is expensed. A cash outflow for shareholders.

other

Operator OMV says Maari restarts this week after the platform strut crack was clamped and the water injection flowline replaced. A permanent repair is likely by mid-2017. Ends the shut-in that began 23 November 2016.

production update

The regulator approved BP taking 80% and operatorship of WA-409-P, completing the 13 October 2016 deal. BP funds Cue's 20% share of the work for 3 years. Cue is still seeking partners for WA-359-P to drill Ironbark in 2018.

farm in farm out completion

Operator OMV shut in Maari and began de-manning the platform after a 1.4 m fatigue crack was found in a wellhead platform strut. OMV says there is no risk to people or the environment. The shutdown was due 5 December anyway for the water injection repair; restart date not given.

production update

Cue sells its 80% interest in the Pine Mills field in Texas, plus its operating subsidiary, land and a workover rig, to Mosman Oil and Gas for US$975k. Partners have a 20-day pre-emption option; completion expected by end-2016. Delivers the planned US exit.

asset acquisition disposition

BP agrees, subject to government approval and due diligence, to take 80% and operatorship of WA-409-P, funding Cue's remaining 20% through three years of work. BP has an option to May 2017 for 42.5% of WA-359-P with 50% of a well funded. Resolves the long Ironbark farm-out search.

farm in farm out agreement

WA-409-P renewed for 5 years by the regulator, resolving the open renewal. First three years require 325 km² of seismic reprocessing and studies (about A$2m); a A$50m exploration well falls in year 4. Covers the giant Ironbark prospect.

regulatory community update

Sampang joint venture (Cue 15%) approved, subject to government approvals, a project switching Oyong and Wortel to gas-only, extending field life by at least 2 years to 2020 or beyond. It lifts 2P reserves ~17 bcf (37%) and cuts annual production costs from about US$50m (2016) to about US$22m by 2018.

material agreement

Year to June 2016: net loss A$87.46m after impairments (Mahakam Hilir A$40.71m, Mahato A$5.33m, Maari A$25.10m) and a switch to successful-efforts accounting, despite production up 24% to 0.82m boe and revenue up 23% to A$45.41m. Cash fell to A$20.49m; no debt, no dividend.

annual report

New board sets strategy: a sustainable business, disciplined growth and step-change opportunities (Ironbark). Overheads to be cut 40% to about A$4.4m a year. Cue will exit US onshore assets and New Zealand exploration acreage, and limit Mahato spending until its legal rights are protected.

other

SKK Migas approved a four-year extension of the 100%-owned Mahakam Hilir exploration period to May 2020, with two contingent wells Cue can drill or withdraw from. Cue expects to announce an internal volume estimate for Naga Selatan-2 in the second half of 2016.

regulatory community update

Regulator approved suspension of the WA-359-P Year 3 well commitment and extended the permit term, both to April 2018, instead of October 2016. Cue holds 100% of the permit containing the 15 Tcf Ironbark prospect; the farm-out continues, giving more time to find a partner.

regulatory community update

Grant Worner becomes interim Executive Chairman (and CEO) for six months at A$35,000 a month from 23 March 2016. Board cut from five to four directors, with annualised board costs down about 40%. Priorities: producing assets, recent exploration successes, lower overheads.

director officer appointment

CEO David Biggs, in the role for three years, resigns effective 15 April 2016. A replacement will be announced in due course. Follows the board overhaul two weeks earlier.

director officer appointment

At NZOG's (48.1%) request, Grant Worner and Andrew Knight (NZOG's CEO) join the board and chairman Foley, Hazledine and Brown resign, without a shareholder vote. Continues NZOG's growing control of the board; the board says it seeks a 'step change' in company size.

director officer appointment

Naga Selatan-2, Cue's first operated well, found 32° API oil in the 100%-owned Mahakam Hilir PSC. It stopped at 1,170 ft, short of the planned 2,240 ft, due to high pressure, and is suspended for production testing. Commercial volumes remain unproven.

drilling result

Te Kiri North-1 reached 4,629 m and is being plugged and abandoned. Mt Messenger had shows but low reservoir quality, and the Eocene target came in lower than predicted. It fulfils Cue's remaining permit obligations. Resolves the 20%-interest exploration thread as a disappointment.

drilling result

Naga Selatan-2 spudded on 7 January 2016 in the Mahakam Hilir PSC, which Cue holds 100% and operates. It is Cue's first operated exploration well, planned to take 15 days to 2,240 ft. This follows the delay from the earlier November 2015 plan.

drilling spud

Te Kiri North-1 spudded on 16 December 2015 in PEP 51149, onshore Taranaki, with Cue holding 20% and Todd operating. The operator's best-case estimates are 10 mmbbl of oil and ~75 bcf of gas, plus 35 bcf more. About 50 days to reach target depth.

drilling spud

The regulator approved a 12-month suspension of the WA-359-P Year 3 well commitment, now due by October 2016. Cue estimates its Ironbark prospect holds more than 15 Tcf of unrisked gas (Cue's own estimate). A farm-out has started, and a review of other Carnarvon permits is planned.

regulatory community update

After King and Young were removed, the board elected Paul Foley chairman. Koh Ban Heng, former CEO of Singapore Petroleum Co, joined as a director. The board is now five non-executives, with CEO David Biggs continuing in management.

director officer appointment

At the 29 July extraordinary general meeting, shareholders voted to remove chairman Geoffrey King, director Andrew Young, and any directors appointed since 28 May 2015. All three resolutions passed, with about 341-344 million votes for and 21-25 million against. This resolves NZOG's requisition.

agm notice

Maari Growth Project completed, with the fourth well, MR10, flowing about 2,000 bopd and lifting field output to about 16,500 bopd. A workover campaign planned from August 2015 aims to reach 20,000 bopd. Cue holds 5%. Completes the programme begun with MR8A.

production update

Cue is buying an 80% operated stake in the Pine Mills oil field in Texas from Gale Force Petroleum for US$2m cash plus carrying US$1m of costs over four years. It produces about 90 bopd and adds roughly 300,000 barrels of 2P reserves. It is Cue's first operated production and first US asset.

asset acquisition disposition

Cue received a requisition from NZOG for a general meeting to vote on removing chairman Geoffrey King, director Andrew Young, and any directors appointed from 28 May 2015. This escalates NZOG's push for board control after the takeover bid.

other

After NZOG reached 48.11% in its takeover bid, three of its nominees (Paul Foley, Peter Hazledine, Brian Smith) joined Cue's board on 13 April. Rowena Sylvester resigned, citing other commitments. The board now has six directors, with Geoffrey King still chairman.

director officer appointment

Indonesian government approval received for Cue's farm-in to the Mahato PSC from Bukit, giving Cue a 12.5% interest. Two wells are planned for 2H 2015, with Cue's share of costs for the wells and seismic capped. This resolves the pending-approval thread.

farm in farm out completion

Cue's fourth supplementary Target's Statement says it understands NZOG's rise to 41.55% reflects Zeta accepting with about 12.7%. Todd and Zeta supply about 40 of NZOG's 41.95%, with only 1.95% from others. PetroChina's subsidiary (~16%) has not accepted.

business combination

Maari growth well MR6A began producing on 21 March at about 7,800 bopd gross, from a 4,577m horizontal well. Field output is about 14,000 bopd, with Cue holding 5%. MR7A is now drilling, continuing the programme begun with MR8A.

production update

NZOG says it holds or has acceptances for 41.55% of Cue, all at A$0.10, and urges shareholders to accept. It warns the share price may fall back toward 8.5 cents after the offer ends on 27 March. The stake has jumped from about 27%.

business combination

Cue completed buying SPC Mahakam Hilir Pte Ltd, taking the Mahakam Hilir PSC in Kalimantan from 40% to 100%. It estimates the Naga Selatan-2 oil prospect could hold 25 million barrels recoverable, with a well planned for Q3 2015, Cue's first as drilling operator.

asset acquisition disposition

Cue's first supplementary Target's Statement cites the A$13.8m half-year profit against the A$69.8m equity value implied by the bid. It attaches Grant Samuel's report, which finds the offer neither fair nor reasonable, valuing a share at A$0.117–0.152 on a control basis.

business combination

Cue's board recommends shareholders reject NZOG's A$0.10 on-market bid, calling it a premium of only 11.1% to the A$0.09 prior close. It notes cash of A$37m (A$0.053 a share), no debt, and says NZOG may change Cue's strategy. Grant Samuel is preparing an expert report.

business combination

NZOG, already holding 19.99%, launched an unconditional on-market cash takeover offer for Cue at A$0.10 per share, open until 27 March 2015. It follows the December stake purchase from Todd at the same price. Shareholders can sell on the ASX at that price.

business combination

Cue sold its PNG portfolio (PDL3, SE Gobe, PRL9, PRL14) to National Petroleum Company of PNG for US$7m cash, effective 20 November. Completes the sale process and removes a potential well commitment of up to US$10m. Proceeds are said to well exceed book value.

asset acquisition disposition

New Zealand Oil & Gas (NZOG) bought 19.99% of Cue from Todd at 10 cents a share, A$13.96m total. NZOG cites Cue's 5% Maari interest as a good fit. Todd's stake, previously 27.1%, is the one sold, so Cue gains a new large holder.

other

First Maari Growth Project well, MR8A, began producing on 28 November at about 2,000 bopd gross (100 bopd to Cue's 5%), ramping toward 4,500 bopd. Five wells are expected by mid-2015. Delivers the first output from the development drilling.

production update

Cue farmed into the Mahato PSC, onshore Central Sumatra, taking a 12.5% interest from Bukit, subject to government approval. Two wells are planned for 2015 with Cue's cost share capped; terms are confidential. Adds to the Indonesian onshore push after Mahakam Hilir.

farm in farm out agreement

Cue agreed to buy SPC's 60% of Mahakam Hilir PSC, lifting its interest from 40% to 100% and becoming operator, subject to government approval. Resolves the farmout thread by going the other way: it will drill the Naga Selatan-2 oil prospect in 2015, and may farm down later.

asset acquisition disposition

Whio-1 reached 2,824m total depth and is being abandoned. It found sandstones in all objectives but could not confirm commercial hydrocarbons. A disappointing exploration result, though Cue (14%) was free-carried by OMV.

drilling result

Whio-1 spudded 23 July 2014 in PEP 51313, 4.5 km from the Maari platform, planned depth 2,879m. Mean unrisked prospective resource is 18 million barrels (100%). Cue (14%) is free-carried by OMV. Matches the expected ~May spud, slightly later.

drilling spud

March quarter: revenue A$8.89m, cash A$43.32m, no debt. Maari development drilling has begun with Ensco 107, expected to add 550 bopd net to Cue. Cue is starting a sale process for its PNG assets and testing farmout of Mahakam Hilir with the operator.

quarterly activities report

Naga Utara-2 sidetrack reached 1,847m and is being plugged and abandoned. Hydrocarbon indications were judged insufficient to justify testing, and hole condition prevented pressure and fluid sampling. Disappointing result for Cue's 40%; future exploration decision pending.

drilling result

Maari field restarted after a 145-day shut-in, with all wells back online by 17 December at about 11,600 barrels a day. Cue's share of repair cost is about US$4m, much expected from insurance; about 42,000 barrels net deferred. Resolves the Maari restart thread.

production update

Manaia-2/2A is being plugged and abandoned as planned. Mangahewa results were in line with expectations; Moki oil samples were taken, but fluid analysis is ongoing, so no oil volume is yet confirmed. Last weekly report.

drilling result

Naga Utara-2 spudded 5 October in Mahakam Hilir (Cue 40%), appraising gas shows at Naga Utara-1 that were not fully evaluated due to mechanical problems. Planned depth is 2,068m over about 62 days. It follows the earlier planned Naga Merah-1 follow-up.

drilling spud

Naga Utara-2 spudded on 5 October 2013 in the Mahakam Hilir PSC (Cue 40%). It will appraise gas shows missed at Naga Utara-1 due to mechanical problems, to about 2,068m over roughly 62 days.

drilling spud

Maari production remains shut: the FPSO Raroa's swivel bearing failed, so the vessel must go to port, with production resuming around late December 2013. Cue's deferred output is estimated at 50,000 boe, 5.3% of its FY13 production; insurance may cover some costs.

production update

Cue agreed to lift its WA-389-P interest from 35% to 40%, subject to approvals, as BHP Billiton rises to 60% and takes over as operator. A permit renewal application is due by end of July.

asset acquisition disposition

David Biggs, formerly 18 years at BHP Billiton Petroleum, was appointed CEO from 22 April 2013 on a A$450,000 base salary. Andrew Young returns to non-executive director after about 5 months as interim CEO, ending the leadership gap since Paton's resignation.

director officer appointment

OMV, for the Maari partners, contracted the jack-up rig ENSCO 107 for a nine-month multi-well Maari campaign expected to start in Q4 2013. Cue holds 5% of Maari, and is fully carried by OMV on the Whio well. This firms up the previously uncertain Maari appraisal drilling.

contract award

Cue won a 20% interest in a new Taranaki Basin permit, PEP 54865, next to PEP 51313 and the Maari field; Todd holds 80% and operates. The 5-year permit covers 2,475 sq km and includes 285 sq km of 3D seismic in the first 30 months.

asset acquisition disposition

Cue and partners farmed out 30% of PEP 51313 to OMV, which funds 100% of the first well on the Whio prospect, about 4 km from Maari. Cue's interest falls from 20% to 14%, subject to approval. Drilling is expected from Q4 2013.

farm in farm out agreement

CEO Mark Paton resigned. The CEO he succeeded, who set the A$1bn market cap vision, leaves after about 20 months (per the later quarterly), ending that growth-strategy thread's leadership. Text here is only a cover page, with no further detail.

director officer appointment

Naga Selatan-1 found gas shows and possible hydrocarbons in several sandstones, but poor hole conditions stopped fluid evaluation and it will be plugged and abandoned. No commercial discovery proven; the 40%-Cue JV will study data and plan 12 months of work.

drilling result

Banambu Deep-1 reached 4,696m and hit its primary and secondary sandstone targets as predicted, but both were water-bearing. The well will be plugged and abandoned. A dry hole for the free-carried 35% interest, ending the up-to-1.5 Tcf hope.

drilling result

Banambu Deep-1 spudded on 29 May in WA-389-P, with Cue free carried at 35% (Woodside 25%, BHP Billiton 40%). Cue estimates up to 1.5 Tcf of recoverable gas. Drilling takes about 50 days. A significant exploration well; a gas discovery would be material.

drilling spud

Woodside has agreed to farm BHP Billiton into WA-389-P for a 40% interest, with BHP paying up to a capped amount for 100% of Banambu Deep drilling. Cue stays at 35% (Woodside falls to 25%), subject to Cue's pre-emptive rights and approvals. Cue sees it as an endorsement.

farm in farm out agreement

Naga Selatan-1, an oil prospect in the Mahakam Hilir PSC (Cue 40%, SPC operator 60%), was expected to spud on 17 April. Planned depth is 6,500 ft, about 33 days, then 15 days of evaluation. Follows the disappointing Naga Utara-1.

drilling spud

Naga Utara-1 tests were inconclusive or poor. The open-hole test failed to flow stably, and the cased-hole test gave only small gas and probable water, judged tight and unlikely commercial. The well will be plugged and suspended, and the rig moves to Naga Selatan. Disappointing for the 80 Bcf prospect.

well test result

Naga Utara-1 sidetrack was called at total depth of 5,066 ft because high-pressure gas influx was nearing the rig's pressure rating. Gas sands were found at 4,825-4,880 ft and 4,975-5,040 ft. An appraisal well with high-pressure equipment is planned.

drilling result

Wortel started gas on 31 January and is stable at about 50 BBTU/d. Combined with Oyong, it meets the 90 BBTU/d contract. Oyong-11 lifted field oil output above 3,000 bopd. Cue's net share is about 2,500 boepd before government production sharing.

production update

WA-360-P was renewed for five years from 6 March 2012. Cue's stake rises from 15% to 37.5% with MEO (operator) on 62.5%, after Petrobras and Rankin Trend left. This resolves the renewal and stake thread. Year 1 commits to buying existing 3D seismic.

joint venture update

The Naga Utara-1 sidetrack reached 4,653 ft; preliminary log interpretation shows three hydrocarbon-bearing sandstones with about 80 net feet. Detailed evaluation is pending, and drilling will continue to 5,500 ft. A first positive indication, not yet a confirmed discovery.

drilling result

Santos announced first gas from Wortel in the Sampang PSC (Cue 15%), the milestone expected since late 2011, a month later than first hoped. Combined Oyong and Wortel output is expected to be 90 TJ/day, sold for domestic power generation. Delivered on budget per Santos.

production update

Naga Utara-1 spudded on 5 January 2012 in the Mahakam Hilir PSC, Cue's first well under its Indonesian farm-in (40%). Target depth is 5,500 ft, about 30 days with testing. At 10 January it was at 223 ft.

drilling spud

Cue decided to raise its WA-360-P interest from 30% to 37.5% after the permit's renewal, leaving MEO as operator with 62.5%. It cited the permit's prospectivity and the small spending needed over three years; Rankin Trend also gave notice of withdrawal.

asset acquisition disposition

Indonesian regulator approved Cue's 40% of the Mahakam Hilir PSC, clearing the June farm-in. Cue pays about US$4m of past costs by end October from cash. Naga Selatan (20 mmbbl oil) and Naga Utara (80 Bcf gas) prospects are to be drilled, targeting a first spud before end-2011.

farm in farm out completion

Petrobras gave notice it will withdraw from WA-360-P, saying MEO's lead does not meet its materiality threshold. Its 50% will go to the remaining partners pro-rata, which would lift Cue's 15% stake. MEO expects to lodge the permit renewal by end of October.

joint venture update

The sale of Cue's 20% of AC/RL7 (Cash-Maple) to PTTEP completed and the US$8m was received. Cash now exceeds US$60m. This resolves the sale first agreed in early 2011.

asset acquisition disposition

Cue agreed, subject to government approvals, to acquire 40% of the onshore Mahakam Hilir PSC in Kalimantan, Indonesia, by refunding 40% of past costs to operator SPC. The PSC has two drill-ready prospects, with drilling planned from the second half of 2011.

farm in farm out agreement

Cue signed a binding agreement to sell its 20% of AC/RL7 (Cash-Maple) to PTTEP for US$8m, payable when regulatory approvals arrive. This turns the earlier conditional deal into a binding contract.

asset acquisition disposition

WA-361-P was renewed for five years from 31 January 2011 after seven blocks were relinquished. Eight blocks remain, requiring 150 sq km of 3D seismic and one exploration well in year 4 of the secondary term. Cue keeps 15%.

regulatory community update

All approvals received for Woodside to farm into WA-389-P (Caterina). Woodside paid Cue US$5m back costs and became operator with 65%; Cue keeps 35% free carried. Seismic is expected from about February 2011, with a well in late 2011/2012.

farm in farm out completion

The Sampang PSC joint venture approved development of the Wortel gas field: US$100m gross (Cue US$15m), first gas around end-2011. This delivers the expected final investment decision; mid-case reserves 118 Bcf gross.

material agreement

Mark Paton, a former BP and BHP Petroleum engineer who co-founded Upstream Petroleum, is appointed CEO from 8 February 2011. He replaces retiring Bob Coppin; the board expects to develop a growth strategy with him.

director officer appointment

CEO Bob Coppin, with Cue 16 years and CEO for 12, will retire in February 2011. His successor is to be announced separately.

director officer appointment

Artemis-1 reached 3,500m and found no hydrocarbons in the target reservoirs; it will be plugged and abandoned. A dry hole for the ~12 Tcf prospect, though Cue's 15% was free carried so it bore no drilling cost.

drilling result

A gas sale contract was signed to sell all Wortel gas to PT Indonesia Power. Mid-case recoverable gas is 118 Bcf gross (Cue ~16 Bcf, about 140% increase in gas reserves); development cost US$100m gross, Cue's share US$15m. First gas around end-2011.

material agreement

Artemis-1 in WA-360-P was spudded 24 November; the operator assesses potential at 12 Tcf recoverable gas, and Cue's 15% is free carried. Cue also outlined its Carnarvon programme: Apache seismic (~US$12m), Woodside seismic from ~Feb 2011, about US$60m total work.

drilling spud

Apache will farm into Cue's 50% of WA-359-P and WA-409-P, funding at least 1,000 sq km of 3D seismic for 40%; Cue drops to 30%, free carried. Apache may earn up to 70% by drilling a well. Cue keeps 15% free carried. This is the farmout that was nearing completion.

farm in farm out agreement

Oil production has begun from the Manaia field, flowing at about 4,000 barrels a day through an 8 km well from the Maari platform. This meets the October start-up expected earlier. Cue holds 5%.

production update

Final regulatory approval is received and Petrobras is now registered on title for 50% of WA-360-P, completing the farm-in announced in April. Songa Venus rig handover for Artemis-1 remains on track for early November. Cue stays at 15%, free carried.

farm in farm out completion

Record year to 30 June 2010: production income up 80% to A$54.7m and net profit A$27.5m. Cash is A$29.4m (about A$40m now) and debt is US$12m. No dividend proposed. Woodside and Petrobras farm-ins noted; Wortel decision expected before year end.

annual report

Cue completed the sale of its 10.72% PRL8 interest (Kimu gas field) for US$5.14m cash, the buyer being named as Talisman Energy Niugini. This closes the sale announced in June. Cue still holds SE Gobe, PPL 190 and Barikewa.

asset acquisition disposition

MEO has signed the rig assignment for the Songa Venus to drill Artemis-1 in WA-360-P, with Shell estimating release to MEO between early and late November 2010. This firms up the rig option noted earlier; Cue's 15% is free carried.

drilling scheduled

Binding farmin and joint venture agreements were signed with Woodside on 13 July for WA-389-P, which holds the Caterina prospect. Woodside takes 65% and operatorship from 30 July; Cue keeps 35% and US$5m back costs. The work program was varied; completion awaits approvals.

farm in farm out agreement

Cue agrees to sell its 10.72% PRL8 interest (Kimu gas field) in PNG for US$5.14m cash, by selling its subsidiary Omati Oil. The buyer is unnamed; completion expected late July/early August 2010. Cue keeps SE Gobe, PPL 190 and Barikewa, with Barikewa-3 now targeted for Q2 2011.

asset acquisition disposition

Woodside agrees to farm into Cue's 100% WA-389-P, holding the Caterina prospect, for 65% and operatorship. It pays Cue's back costs up to US$5m, the new 1,440 sq km 3D seismic and the first well. Cue keeps 35%; subject to documentation and approvals.

farm in farm out agreement

MEO signed a binding WA-360-P farm-in with Petrobras: Petrobras earns 50% by funding the first well up to US$41m, with MEO keeping 20%. Subject to FIRB approval. Cue stays at 15%, free carried on Artemis-1, which is planned for late 2010.

farm in farm out agreement

Oil production has started from the M2A well (MR9) at Maari, with flow testing continuing for several days. M2A holds P50 oil-in-place of 33.6 million barrels. This ends the delay flagged earlier; Cue holds 5%.

production update

With MEO dropping out of WA-359-P, Cue's interest rises from 20% to 50% and it resumes as operator, with Exoil holding the other 50%. Cue now has more of a permit whose lead MEO judged too risky to drill.

farm in farm out completion

MEO has irrevocably committed to drill Artemis-1 in WA-360-P, which could hold 12 Tcf of recoverable gas. Cue keeps 15% with a free carry through the well. This resolves the open question of whether the permit would be drilled.

farm in farm out agreement

Cue takes 20% of PEP 51313, next to Maari and Manaia and covering the old PEP 38494 Matariki area, and 20% of the mostly onshore gas-prospective PEP 51149. Both are operated by Todd and are earned by reimbursing past costs. PEP 51313 also requires Cue to fund part of Todd's 3D seismic share.

farm in farm out agreement

Cue calls Manaia-1 a successful oil appraisal and M2A a success, with M2A most-likely oil-in-place of 30-40 million barrels and Manaia about 58 million. Both should add proven reserves; Cue holds 5%. Production at Manaia to follow over coming months.

drilling result

PetroChina has bought Singapore Petroleum Company, which holds 16.31% of Cue and 40% of the Sampang PSC alongside Cue's 15%. Cue's largest-holder group is now controlled by PetroChina. No bid for Cue is stated.

other

First gas flowed from the Oyong field in Indonesia on 2 October, as expected. Cue holds 15%. Oyong has about 103 BCF of recoverable gas, sold under a contract to PT Indonesia Power, with plateau of about 60 BBtu/day expected in October. It is Cue's first gas production.

production update

Spikey Beach-1 in T/38P reached 2,100 m with no hydrocarbon shows and is being plugged and abandoned. It is a dry hole; Cue's 10% carried interest bears no drilling cost.

drilling result

Manaia-1 hit the target Mangahewa sandstone at 6,324 m on prognosis, interpreted from mud logs and LWD data to contain hydrocarbons. It is an encouraging sign, not a tested result. Casing to be set next, then a 1,000 m horizontal section.

drilling progress report

FY2009 net loss was A$20.9m against an A$11.7m profit, with A$27m of exploration write-downs (A$15.6m PNG, A$11m Indonesia). Profit before write-downs was A$6m. Revenue was A$32.5m, cash A$4.3m, and no dividend.

annual report

Founder Geoff Albers resigns as director effective 4 September 2009. He founded Cue in 1981 and was chairman for 19 years. No successor is named.

director officer appointment

Partner Horizon Oil reports all five Maari oil wells online from 16 August, averaging 39,543 bopd, above the 35,000 bopd facility figure. This is better than the earlier interrupted output. Cue holds 5%.

production update

MEO raised pre-drill estimates for East Artemis in WA-360-P: mean gas-in-place of 10.8 Tcf (Calypso) and 9.5 Tcf (Legendre), with 32% chance of success. Offers due 31 August, farm-out targeted by 30 September. Cue holds 15%.

resource reserve update

Manaia-1 appraisal began drilling on 1 August 2009 from the Maari platform, about 45 days, targeting mean 57.8 MMstb oil in place. Maari development drilling finished ahead of schedule. Cue holds 5%.

drilling spud

The entitlement offer was only half taken up: 62.2m shares applied for (including 0.65m shortfall), raising A$9.3m before costs against the up-to-A$18.8m sought. It was not underwritten, so the shortfall is not funded.

capital raising announcement

The Maari joint venture approved the M2A production well, targeting a separate oil accumulation with P50 oil in place of 43 MMSTB, 27 days to drill from late September 2009 after Manaia-1. Cue holds 5%.

drilling scheduled

Cue plans a 1-for-5 non-renounceable entitlement offer at A$0.15 per share, raising up to about A$18.8m from up to 125.6m new shares. It is not underwritten. Funds are for working capital, Wortel development, Manaia appraisal and exploration.

capital raising announcement

The Maari joint venture approved the Manaia-1 appraisal well, due to start mid August 2009 after Maari development drilling. It is an extended-reach well from the Maari platform, 47 days, targeting a field with mean 58 million barrels oil in place. Cue holds 5%.

drilling scheduled

The first Maari oil cargo of about 165,000 barrels (Cue share 39,000) loaded on 18 April, to be sold to east coast Australian refineries. This is Cue's first Maari sales. Cargoes are expected every three weeks once output reaches about 35,000 bopd.

production update

Half-year to 31 Dec 2008: revenue rose 43% to A$17.97m, but a net loss of A$16.7m followed impairments of A$17.6m on PPL190 (Cobra, Bilip, Iehi, judged uneconomic at current oil prices) and A$11m on Sampang. Profit before impairments was A$11.1m. No dividend.

half year report

Oil flowed for the first time from Maari on 25 February 2009, from the first of five planned production wells. Cue holds 5%. Output is expected to reach about 35,000 bopd gross by end of Q3 2009, and the field is expected to produce about 50 million barrels.

production update

Pressure tests confirmed the Zeus-1 target sands are water bearing, and MEO calls the result disappointing. The well is being plugged and abandoned. This is a dry hole for the 15% Cue-held permit, whose cost was carried by RDI. MEO plans a WA-360-P farm-out from Q2.

drilling result

Zeus-1 spudded on 17 January 2009 in WA-361-P, with the 30-inch casing cemented at 271m. Cue holds 15%, free carried. This is the long-awaited multi-Tcf exploration well, now underway.

drilling spud

MEO secured a 12-month extension to its drill-or-drop options on WA-359-P and WA-360-P, from 1 January 2009, in return for more seismic. It is seeking farm-in partners for 2010 wells. Cue holds 20%. Zeus-1 rig handover slipped to about 5 January.

farm in farm out agreement

RDI's options to farm into WA-359-P and WA-360-P lapsed after its IPO was deferred. This undoes part of the MEO farmout, though MEO expects replacement partners. RDI still funds 80% of Zeus-1, now due to spud in December; Cue stays at 15%.

farm in farm out agreement

Cue and Gascorp each declined to fund 5% of Zeus-1, so their combined 10% reverts to operator MEO, lifting MEO to 35%. This resolves the 10 September option: Cue's WA-361-P interest falls from 20% to 15%, still carried free.

farm in farm out completion

Stuart Petroleum spudded Bazzard-1 in Vic P53 (Gippsland Basin) on 20 September; it is at 154m, targeting 3,500m. Mean potential is 100 million barrels. Cue Petroleum holds 25%. This is the well flagged for September.

drilling spud

Cobra 1A ST3 is being suspended as a gas condensate discovery after a drill stem test recovered gas with condensate. A 34m hydrocarbon zone was found in the upper Hedinia, the first success for the sub-thrust play in PNG. Cue holds 10.947%.

drilling result

Cue acquired a 20% interest in New Zealand permit PEP 38494 by farming in with operator Todd Exploration, funding 30% of the Matariki-1 well. Matariki could hold about 100 MMstb recoverable oil, with drilling planned in the second half of 2009.

farm in farm out agreement

Logging of Cobra-1A to 3,202m found the deeper Iagifu sandstone water-bearing, ending the primary target. The shallower Hedinia may hold a significant hydrocarbon column, but pressure readings were unreliable, so a short sidetrack (Cobra-1A ST1) began. Cue holds 10.947%.

drilling result

MEO has irrevocably committed to drill the multi-TCF-potential Zeus-1 gas well in WA-361-P in October 2008. Cue is carried free for a 15% interest and may contribute up to 5% of the well cost to keep its 20%.

farm in farm out agreement

Third-party release: MEO formed an alliance with Resource Development International, which will fund most of the Zeus-1 well in WA-361-P and leave MEO 25%. Cue (20%) may fund up to part of the well. Zeus-1 is planned for October 2008.

farm in farm out agreement

Cue was granted new Carnarvon Basin permit WA-409-P, next to its WA-359-P and WA-389-P permits. Cue Exploration holds 50% and operates; Gascorp holds 50%. It follows the April acceptance of the W07-16 offer.

asset acquisition disposition

Half-year to 31 Dec 2007: net profit A$5.08m versus a A$27.4m loss a year earlier, which included a A$28.98m Sampang write-down. Revenue rose 117% to A$12.58m, with A$8.45m from Oyong oil. No dividend; net tangible assets 9 cents per share.

half year report

Cobra-1 began drilling on 25 January 2008, later than the mid-January plan. It targets 30-40 million barrels unrisked (Cue 10.947%, 3.3-4.4 million barrels) to 3,071m, taking about 60 days. This is the long-flagged Murray Deep well.

drilling spud

Cue farmed out its 50% in Northwest Shelf permits WA-359/360/361-P to MEO, which becomes operator and earns 60% by funding seismic, up to 70% by funding the first well in each. Cue falls to 20-15%. Subject to government approval.

farm in farm out agreement

First oil has started at Oyong, Cue's 15% Sampang field, ending the repeated delays. Santos expects 8,000-10,000 bopd gross once stable. Oyong gas final investment decision is expected before end-2007, with first gas in first half 2009.

production update

Cue farmed out part of T/38P in the Bass Basin to Beach, which will earn 80% of a defined portion by paying for the Spikey Beach-1 well in 2H 2008. Cue and Exoil keep 10% each there; Cue stays operator. Subject to documentation and approval.

farm in farm out agreement

Singapore Petroleum Company raised its Cue holding to about 6.75% (42.4m shares), buying 8.57m shares at about 21.8c. It says it may explore closer co-operation with its partners, with any Cue discussions exploratory.

other

Cue arranged a US$20m project finance facility with BOS International (Bank of Scotland) to cover its remaining share of Maari development costs. It follows the loan negotiations reported in April; first oil is now expected in Q3 2008.

debt financing

Half-year to 31 December 2006 shows a net loss of A$27.4m, against a profit a year earlier, driven by a write-down of Sampang PSC spending after the Jeruk oil volumes were cut. Revenue was A$5.8m; no dividend. This confirms the Jeruk downgrade's financial cost.

half year report

The Oyong production vessel contract went to PT Pulau Kencana Raya for the Seagood 101 barge, resolving the retender. The barge is expected in position by June 2007, with first oil by end of Q2 at about 10,000 bopd. Cue holds 13.5%.

contract award

A 5-year retention lease, AC/RL7, was awarded over the Cash-Maple gas field, with the rest of AC/P20 to be surrendered. Jurassic recoverable gas is estimated at 194-1,079 bcf. Cue holds 20% alongside operator Coogee at 80%.

asset acquisition disposition

Santos says Jeruk's upside recoverable oil is most likely under 50 million barrels, down from the earlier under-170 mmbbl view. Further appraisal drilling is on hold pending review of development scenarios and commercial and technical issues.

resource reserve update

Wortel-2 is being plugged and abandoned at 1,421 m after finding no reservoir or significant hydrocarbons, a dry appraisal well. Cue says more appraisal drilling is needed and could come before year end, depending on rig availability.

drilling result

Wortel-2 appraisal well began drilling 26 September 2006, about 1 km south-east of the Wortel-1 gas discovery. A vertical well to about 1,400 m, expected to take 18 days. Cue holds 13.5%.

drilling spud

Wortel-1 flowed gas at 18.5 million cubic feet a day from the 141 m column, with 4-5 barrels of condensate per million cubic feet. Santos says further appraisal is needed. Wortel-2 may follow in October.

well test result

Cue's subsidiary was awarded exploration permit WA-389-P in the northern Carnarvon Basin, about 3,825 km², just north of Cue's existing interests there. It will be explored for gas/condensate and oil.

asset acquisition disposition

Wortel-1 reached 1,464 m with an initial gross gas column of 141 m in good quality reservoir, above a gas-water contact at 1,383 m. Flow testing is next. A gas discovery 7 km from Oyong; Cue holds 13.5%.

drilling result

Wortel-1 began drilling 16 August 2006, about 7 km west of the Oyong field in 42 m of water. It is a vertical well testing the Oyong-equivalent limestone, planned to about 1,500 m in 20 days. Cue holds 13.5% of the PSC.

drilling spud

Santos says Jeruk-3 found an oil/water contact at about 4,760 m, cutting the known oil column to about 145 m from 379 m. Most likely contingent resource is now below the 170 mmbbl estimate from January 2005. Cue holds 7.36%.

resource reserve update

The 1-for-5 entitlement offer at 22c raised A$23m before costs. Shareholders took up only 14.6% (15.3m shares); underwriter Todd Petroleum Mining took the balance and will hold 25% of 628.2m shares now on issue.

capital raising announcement

Herbras-1 is being plugged and abandoned at 2,515 m after reaching its main target without significant hydrocarbons, a dry hole. It is Cue's second dry exploration well in weeks after Dukuh-1. Cue holds 13.5% of the Sampang PSC.

drilling result

After a restart, Jeruk-3's 48-hour main test flowed oil at a stabilised 2,750 barrels a day, constrained by surface facilities. This confirms the earlier test; drilling continues to find the oil/water contact. Cue holds 7.36% of Jeruk.

flow test result

Dukuh-1 is being plugged and abandoned after failing to find significant hydrocarbons, a dry hole. The rig moves to the Herbras-1 exploration well. Cue holds 13.5% of the PSC.

drilling result

Jeruk-3 flowed oil at a choked-back rate of about 3,200 barrels a day, constrained by surface facilities. A positive first appraisal test of the Jeruk discovery, in which Cue holds 7.36%.

flow test result

Cue will raise about A$23m (before fees) through a 1-for-5 renounceable entitlement offer of 104.7 million shares at 22 cents, fully underwritten by Todd Petroleum Mining, linked to directors Tweedie and Hoolihan. Funds go to Jeruk appraisal, exploration, Oyong gas and Maari.

capital raising announcement

Dukuh-1 exploration well began drilling 5 April 2006 in the Sampang PSC, about 10 km south of Jeruk, to test a four-way dip closure to 3,200 m. Cue holds 13.5% of the PSC.

drilling spud

SE Gobe-12 found a 25.8 m net oil column under a 25.4 m gas column, and is being completed as a producer. Oil is expected mid-April 2006 at 1,500-2,000 barrels a day, a good follow-up to the earlier SEG-11 success.

drilling result

Jeruk-3 appraisal well began drilling 24 January 2006, targeting the Kujung carbonate at about 5,500 m, taking about 90 days. Cue's economic interest in the well is 7.36%, following the Medco restructuring.

drilling spud

Cue transferred 6.818182% of its 15% Jeruk interest to Medco, which cancels 90.9% of the in-kind premium Cue owed (about US$50m of first production) and pays about US$6m of past costs. Cue's Jeruk interest becomes 8.181818%; Sampang stays 15%.

farm in farm out agreement