9 May 2012investor presentation● Neutral
May presentation repeats known figures: 2.7 mmbbl oil and 118 Bcf gas, A$42.3m cash, no debt, 698.1m shares. Market cap is A$188m at 27c. Shows the Maari appraisal well now Q4 2012 rather than Q1 2013.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
7 May 2012farm in farm out agreement▲ GoodMajor
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.
2 May 2012drilling progress report● Neutral
Naga Selatan-1 reached 1,556 ft by 1 May; logs were run and 13 3/8-inch casing is being set. Routine progress with no results.
30 Apr 2012quarterly activities report● Neutral
March quarter: revenue receipts A$7.1m, cash A$42.3m, and final debt repayment (about A$2.5m) made, so Cue is debt free and unhedged. Maari output averaged about 8,000 bopd in March after a week-long shutdown. Banambu Deep is set for mid-May.
27 Apr 2012drilling scheduled▲ Good
Banambu Deep-1 in WA-389-P (Woodside operator, Cue 35%) is expected to start drilling mid-May, to 4,800m in about 60 days. Woodside carries Cue's costs. Confirms the well expected for Q2 2012; it targets a gas prospect.
26 Apr 2012drilling progress report● Neutral
Naga Selatan-1 was at 768 ft on 25 April, with 20-inch casing set at 227 ft. Routine early progress; no results yet.
17 Apr 2012drilling spud● NeutralMajor
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.
4 Apr 2012regulatory community update● Neutral
Recording began on a 254 sq km Maari 3D seismic survey over PMP 38160 (Cue 5%) and PEP 51313 (Cue 20%), covering Maari, Manaia and the Pike and Paua prospects. It will help pick wells for the 2012/13 summer appraisal campaign; about 20 days.
26 Mar 2012well test result▼ BadMajor
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.
20 Mar 2012investor presentation● Neutral
March presentation repeats known figures: 2.7 mmbbl oil and 118 Bcf gas, A$50.7m cash and US$2.6m debt. Market cap is A$201m at 29c. 2012 forecast is 350,000 bbl oil and 4.0 Bcf gas. No new announcements.
16 Mar 2012well test result● Neutral
Naga Utara-1 reached 5,066 ft; a gas sample was recovered on wireline and an open-hole drill-stem test is under way. Results are being evaluated, so there is no flow rate or commercial conclusion yet.
9 Mar 2012drilling result▲ GoodMajor
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.
9 Mar 2012production update▲ GoodMajor
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.
8 Mar 2012joint venture update▲ GoodMajor
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.
28 Feb 2012half year report● Neutral
Half-year to December 2011: profit A$3.9m versus A$1.3m, mostly from a A$2.68m foreign exchange gain. Production income fell to A$20.0m and gross margin to A$12.2m. Cash was A$50.7m, project debt US$2.6m, and Wortel adds 14 Bcf net to Cue. No dividends.
27 Feb 2012drilling result▲ GoodMajor
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.
24 Feb 2012drilling progress report● Neutral
The Naga Utara-1 sidetrack succeeded from 3,291 ft and is at 3,535 ft. It will re-drill the earlier gas zones to 4,650 ft, then be logged.
17 Feb 2012drilling progress report● Neutral
Plugging the high-pressure gas zone in Naga Utara-1 was difficult, with the well flowing gas and producing 5-8 metre flares over seven days. Sidetrack equipment is on site, so drilling will resume immediately with no suspension, an improvement on the prior plan.
13 Feb 2012drilling progress report▼ Bad
Naga Utara-1 hit a high-pressure gas zone (4,780-4,887 ft); gas was flared for three days and drill pipe is stuck. The well will be plugged and sidetracked to re-drill the gas zone after about three weeks' suspension, with no rig costs during the suspension.
8 Feb 2012drilling progress report▲ Good
Naga Utara-1 is at 4,843 ft with multiple hydrocarbon shows below 3,040 ft. A high-pressure gas flow occurred at current depth, so mud weight is being raised before logging. Encouraging, but no result yet.
1 Feb 2012production update▲ GoodMajor
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.
1 Feb 2012drilling progress report● Neutral
Naga Utara-1 is at 3,222 ft after setting casing at 3,000 ft. About 13 more days remain to the 5,500 ft target. No result reported.
25 Jan 2012drilling progress report● Neutral
Naga Utara-1 is at 2,232 ft with 13 3/8 inch casing set at 982 ft. About 19 more days remain to reach 5,500 ft. No hydrocarbon result reported yet.
24 Jan 2012quarterly activities report● Neutral
December quarter: revenue receipts A$9.1m, no hedges, and debt down 31.7% to A$2.8m with final repayment expected in Q1 2012. Naga Utara-1 is drilling, Wortel is due by end of January, and WA-360-P renewal is lodged with Cue rising to 37.5%. Woodside's WA-389-P well is expected in Q2 2012.
20 Jan 2012dividend declaration● Neutral
Octanex, a third-party shareholder, plans to distribute its 43.7m Cue shares to its own members as a special dividend (1 Cue share per 5 Octanex shares; record date 28 March 2012). Cue itself is not paying anything and no new money is involved. Cue shares were valued at 24c.
18 Jan 2012drilling progress report● Neutral
Naga Utara-1 (Cue 40%) is at 988 ft, with a pilot hole drilled to manage shallow gas hazards. About 25 more days remain to the 5,500 ft target, including testing. No result yet.
12 Jan 2012production update▲ Good
Wortel-3 and 4 are drilled and completed as gas producers, and the rig has moved to the Oyong-11 infill oil well. First gas is expected by end of January 2012. Budget stays US$105.1m (Cue US$15.8m); Cue's net share is about 2,700 boepd after infill drilling.
11 Jan 2012drilling spud● NeutralMajor
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.
4 Jan 2012drilling scheduled● Neutral
Naga Utara-1, a gas prospect next to the Sambutan field in Mahakam Hilir PSC (Cue 40%), is expected to spud on 4 January 2012. Planned depth is 5,500 ft, taking about 30 days. Weekly progress reports will follow.
21 Dec 2011production update▼ Bad
Wortel-4 is drilled and being completed; Wortel-3 follows. First gas export is now expected by end of January 2012, later than the late-December/early-January target. Budget still US$105.1m, Cue share US$15.8m.