21 Aug 2009drilling progress report● Neutral
Manaia-1 reached 4,292 m measured depth, with cement being run to cure lost circulation. Target depth is about 6,500 m. No result yet.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
14 Aug 2009resource reserve update▲ GoodMajor
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%.
14 Aug 2009drilling progress report● Neutral
Manaia-1 reached 1,658 m, with 13 3/8-inch casing run and cemented. Drilling continues. No new result.
7 Aug 2009other● Neutral
Updated top 20 shareholder list after the extra allotment. Todd Petroleum holds 23.55% and UOB Kay Hian 16.67%. Administrative only.
6 Aug 2009admin correction● Neutral
A misallocation led to a further 2,232,028 shares being allotted under the entitlement offer. Shares on issue now total 692,694,718.
4 Aug 2009drilling spud▲ GoodMajor
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%.
23 July 2009other● Neutral
Post-offer top 20 shareholder list. Todd Petroleum holds 23.62% and UOB Kay Hian 16.74%; Octanex and Todd Tasman follow. Administrative disclosure, no new events.
23 July 2009capital raising announcement● Neutral
Cue allotted 62,223,683 new shares under the entitlement offer, raising about A$9.3m gross. Shares on issue rise from 628.2m to 690.5m. No shortfall will be placed. Completes the offer announced in June.
What it means for a shareholder
62.2m new shares at about A$0.1495 to raise about A$9.3m. That's 9.0% dilution: every existing holder's slice gets 9.0% smaller. If you held A$1,000 of shares (6,691 at the issue price), your slice goes from 0.00106% to 0.000969% of the company. To keep it you'd need 663 more shares - about A$99 at the issue price.
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21 July 2009joint venture update● Neutral
MEO extended the WA-360-P data room to 14 August so bidders can review the new Artemis 3D data. It says the ~9.5 Tcf gas-in-place estimate will increase. Cue holds 15%; farm-out still pending.
20 July 2009capital raising announcement● NeutralMajor
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.
What it means for a shareholder
62.2m new shares at about A$0.1495 to raise about A$9.3m. That's 9.0% dilution: every existing holder's slice gets 9.0% smaller. If you held A$1,000 of shares (6,688 at the issue price), your slice goes from 0.00106% to 0.000969% of the company. To keep it you'd need 662 more shares - about A$99 at the issue price.
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15 July 2009joint venture update▲ Good
MEO says preliminary Artemis 3D interpretation in WA-360-P supports the prospect and gas-in-place will likely exceed the earlier ~9.5 Tcf. Data is now with farm-in bidders; offer deadline may be extended. Cue holds 15%.
10 July 2009drilling scheduled▲ GoodMajor
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%.
19 June 2009capital raising announcement● Neutral
The entitlement offer closing date is extended from 9 July to 16 July 2009 to give shareholders more time. New shares are now due to be issued 23 July. Terms are unchanged.
18 June 2009investor presentation● Neutral
June presentation repeats the portfolio, reserves and the A$500m market cap goal, and shows the entitlement offer. It states cash of A$8.5m at 31 May 2009 and a market cap of about A$94m at A$0.15. Largely known facts.
11 June 2009capital raising announcement● NeutralMajor
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.
What it means for a shareholder
126m new shares at about A$0.1497 to raise about A$18.8m. That's 17% dilution: every existing holder's slice gets 17% smaller. If you held A$1,000 of shares (6,681 at the issue price), your slice goes from 0.00106% to 0.000886% of the company. To keep it you'd need 1,336 more shares - about A$200 at the issue price.
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11 June 2009capital raising announcement● Neutral
Shareholder notice for the 1-for-5 offer at A$0.15: record date 19 June, closing 9 July, up to 125.6m new shares taking issued shares to as many as 753.9m. Todd and its associates cannot take up the shortfall. Repeats the announced offer.
19 May 2009drilling scheduled▲ GoodMajor
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%.
8 May 2009listing compliance notice▼ Bad
ASX queried whether Cue had enough cash after A$5.6m negative operating cash flow in the quarter. Cue said it has sufficient funds, citing Maari liftings, though Oyong and Wortel costs mean future negative cash flows are possible. Funding would be arranged as required.
20 Apr 2009production update▲ GoodMajor
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.
31 Mar 2009joint venture update▲ Good
MEO completed the 250 km2 Artemis 3D survey in WA-360-P with no incidents. Processed data is expected by end June, ahead of a Q2 farm-out to fund a 2010 well. Cue holds 15%.
23 Mar 2009production update▲ Good
Two Maari wells are flowing at a peak combined rate above 26,000 bopd, so the first oil cargo is brought forward to early April. The third well is due early April, then three water injectors. Cue holds 5%.
23 Mar 2009joint venture update● Neutral
About 51% of the Artemis 3D survey in WA-360-P is acquired, with completion expected in about a week. Farm-out is scheduled for Q2 2009. Progress update only.
16 Mar 2009joint venture update● Neutral
MEO's Artemis 3D survey in WA-360-P was interrupted by a water quality issue at the contractor's cost, with about 6% acquired. Acquisition resumed 16 March. A farm-out is planned for Q2 2009.
11 Mar 2009production update▲ Good
Maari's first well is flowing above 10,000 bopd and the second came on stream 9 March. A third well is due early April, and the first cargo is contracted for April. Cue holds 5%. Builds on the 25 February first oil.
10 Mar 2009joint venture update● Neutral
MEO starts a 250 km2 3D seismic survey in WA-360-P, costing about US$3.4m, with MEO paying 90% to extend its drill/drop option to 31 Dec 2009. MEO rises to 70%; Cue stays at 15% in this permit. Artemis well targeted for 2010.
6 Mar 2009other● Neutral
S&P index rebalance notice listing index additions and removals, effective 20 March 2009. The text shows CUE among the All Ordinaries additions. It is not a company announcement and has no operational or financial effect.
27 Feb 2009half year report▼ BadMajor
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.
25 Feb 2009production update▲ GoodMajor
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.
19 Feb 2009drilling progress report● Neutral
The Songa Venus rig was released on 18 February and handed to the next consortium member, after 33 days on the Zeus-1 location. Administrative follow-up to the dry hole.
17 Feb 2009investor presentation● Neutral
February presentation repeats the portfolio, reserves and the goal of a market cap above A$500m. It shows a market cap of about A$82m and cash of A$13.5m at 31 January 2009. Largely repeats known facts.