13 July 2010joint venture update● Neutral
MEO buys Gascorp's 15% of WA-361-P for US$1m, lifting MEO from 35% to 50%. Cue's 15% in the permit is unchanged. The permit is in its final exploration year and MEO plans to apply for renewal.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
28 June 2010farm in farm out completion▲ Good
Australia's foreign investment regulator (FIRB) has no objection to Petrobras taking 50% of WA-360-P, clearing a key hurdle flagged earlier. Other permit-transfer approvals are still underway. Artemis-1 is planned for later in 2010; Cue stays at 15%.
25 June 2010asset acquisition disposition▲ GoodMajor
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.
10 June 2010joint venture update● Neutral
MEO, the WA-360-P operator, buys a further 5% of the permit from Moby's subsidiary for US$7m cash, lifting MEO to 25% after the Petrobras deal. Cue's 15% and its free carry on Artemis-1 (late 2010) are unchanged.
3 May 2010investor presentation● Neutral
May 2010 presentation largely repeats April's: cash A$23.6m at 31 March, 693.3m shares, market cap A$208m at 30 cents. It lists Artemis-1 drilling in 3Q/4Q 2010 and Caterina drilling in 2011. No new information is visible.
27 Apr 2010farm in farm out agreement▲ GoodMajor
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.
21 Apr 2010investor presentation● Neutral
April 2010 presentation repeats known facts: cash A$23.6m, loan US$14.3m, 693.3m shares, market cap A$187m at 27 cents. Reserves are as at 31 Dec 2009. No new announcements are visible in the readable text.
15 Apr 2010drilling progress report● Neutral
Acquisition has begun of the Matariki 3D seismic survey in PEP 51313, offshore Taranaki, covering 204 sq km of 3D plus about 80 km of 2D. It should take about three weeks. Cue holds 20%; Todd operates.
14 Apr 2010farm in farm out agreement▲ GoodMajor
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.
14 Apr 2010joint venture update▲ Good
Moby welcomes the Petrobras farm-in to WA-360-P and has agreed that integrated LNG is a permitted development and to commit its gas to it. Artemis-1 is planned for late 2010. Moby keeps 15%.
24 Mar 2010joint venture update▼ Bad
Cue says the changes sought to the WA-360-P joint operating agreement disadvantage Cue and its shareholders. Cue is still negotiating. Cue's 15% free carry in Artemis-1 is unchanged. This identifies Cue as the holdout on the farm-in side agreements.
22 Mar 2010joint venture update▼ Bad
MEO says one of four WA-360-P parties refused to sign side agreements the farminee requires, so the farm-in is unsigned. MEO is preparing to re-open the farm-in. MEO says it will still drill Artemis-1, with a rig option for Sept-Dec 2010.
22 Mar 2010joint venture update● Neutral
Moby says it supports the farminee's requested agreements and that Artemis-1 will be drilled by Q4 2010. Its 15% free carry is unaffected. This implies Moby was not the party that refused to sign (inference).
12 Mar 2010investor presentation● Neutral
March 2010 corporate presentation: cash A$25.3m at 1 March, project loan US$16.95m, 693.3m shares, market cap A$146m at 21 cents. It repeats the known asset and reserves picture. No new announcements are visible in the readable text.
3 Mar 2010production update▲ GoodMajor
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%.
26 Feb 2010half year report▲ Good
Half-year to 31 Dec 2009: revenue A$30.9m (up 72%) and net profit A$8.4m, against a A$16.7m loss a year earlier. Growth came mainly from Maari oil and Oyong gas starting. No dividend proposed.
11 Feb 2010joint venture update● Neutral
MEO says the WA-360-P farminee's legal review is advanced, but binding agreements are still unsigned, later than expected. Two rig options are identified for Artemis-1 in 2H 2010. Cue keeps its 15% free carried interest.
8 Jan 2010drilling result● Neutral
The 60 km Barikewa 2D seismic survey in PRL9 (Cue 14.894%) is complete. The data will be used to site a Barikewa-3 well, expected in 2011. Resource size remains highly uncertain until the data is interpreted.
4 Jan 2010farm in farm out completion● NeutralMajor
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.
4 Jan 2010joint venture update▼ Bad
MEO let its WA-359-P drill option lapse and will hand back its 60% interest, saying the Hephaestus lead was not de-risked enough to fund a well. The interest returns to original farmors Cue and Exoil equally.
21 Dec 2009joint venture update▲ Good
MEO says its farminee has board approval to complete the WA-360-P farm-in, subject to Australian approvals. MEO has triggered the well option, targeting Artemis-1 (about 12 Tcf mean prospective resource) in the second half of 2010. Cue keeps 15%.
21 Dec 2009farm in farm out agreement▲ GoodMajor
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.
21 Dec 2009production update● Neutral
Operator OMV says the drilling rig has left Maari, which has produced over five million barrels since February 2009. M2A and Manaia-1 are now expected to start in the first quarter of 2010, later than M2A's earlier year-end target. Cue holds 5%.
16 Nov 2009joint venture update● Neutral
MEO says its preferred WA-360-P farminee, a major international company, has agreed all commercial terms. Binding deals now wait for its board in mid-December and Australian approvals, slipping from before MEO's 18 November AGM. Cue keeps 15%.
12 Nov 2009investor presentation● Neutral
CEO's AGM presentation largely repeating the October corporate presentation: cash A$18.8m, 692.7m shares, project updates and gas inventory. No new announcements are visible in the readable text.
9 Nov 2009drilling progress report● Neutral
A 60 km 2D seismic survey has started over the Barikewa gas field in PRL9 (Cue 14.894%), due to finish by mid January 2010. It is meant to site a Barikewa-3 well expected in 2011. The field's size remains very uncertain.
20 Oct 2009other● Neutral
Cue relists on the New Zealand exchange (NZX) the next day. The release says 26% of Cue holders are New Zealand-based, holding about 40% of shares. It adds a second market for trading; no capital is raised.
20 Oct 2009investor presentation● Neutral
October 2009 corporate presentation restating known facts: cash A$18.8m at 30 Sept, 692.7m shares, US$20m Maari loan, and a goal of a market value above A$500m. Largest holders are Todd 27% and Singapore Petroleum 16.3%. No new result.
20 Oct 2009joint venture update● Neutral
MEO has chosen a preferred farminee for WA-360-P and expects binding agreements before its 18 November AGM, slipping the earlier 30 September target. Gascorp's 15% is being acquired by Moby Oil & Gas, subject to shareholder approval. Cue keeps 15%.
19 Oct 2009farm in farm out agreement▲ GoodMajor
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.