1 July 2022production update▲ Good
NZOG relays Cue's release that Mahato well PB-18 is producing about 1,000 bopd. It adds nothing new; Cue holds 12.5% of Mahato and NZOG owns 50.04% of Cue.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
28 June 2022drilling progress report▼ Bad
Central reports Palm Valley-12 at 2,278m on 27 June, 220m in the week, with gas shows from 1,778-2,278m. Its CEO says drilling has been difficult, behind schedule and over budget. The JV will consider a horizontal lateral to appraise P3.
28 June 2022drilling progress report● Neutral
NZOG relays Central's update: Palm Valley-12 drilled 220m in a week to 2,278m in the P4 unit. Gas shows through 1,778-2,278m and minor gas flows suggest no significant fractures in the P3. Arumbera target still 3,560m; Cue holds 15%.
24 June 2022debt financing● NeutralMajor
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.
24 June 2022debt financing● Neutral
NZOG relays Cue's announcement of the A$7m, two-year unsecured related-party loan from NZOG. It repeats the Cue release; NZOG holds 50.04% of Cue.
21 June 2022drilling progress report▼ Bad
NZOG relays Central's update: Palm Valley-12 casing is cemented and drilling resumed, but total lost circulation hit at 2,024m. Underbalanced air drilling then took the well to 2,058m on 20 June. Cue holds 15%.
21 June 2022drilling progress report▼ Bad
Central reports Palm Valley-12 at 2,058m on 20 June after casing was cemented, with total lost circulation at 2,024m. It switched to underbalanced air drilling. Same content as the NZOG release.
14 June 2022drilling progress report● Neutral
NZOG relays Central's update: Palm Valley-12 at 2,005m on 13 June, with the week spent cementing casing and running remedial cement plugs. Drilling resumes once the required seal strength is reached. Cue holds 15%.
14 June 2022drilling progress report▼ Bad
Central reports Palm Valley-12 at 2,005m on 13 June. Cementing the casing in fractured rock has been problematic, with losses continuing, and several remedial cement plugs have been run. Drilling resumes once the shoe is strong enough.
14 June 2022regulatory community update▲ Good
NZOG relays Cue's announcement that regulator SKKMigas approved 12 more oil production wells in the Mahato PB field. It repeats the Cue release; NZOG owns 50.04% of Cue and Cue holds 12.5% of Mahato.
14 June 2022regulatory community update▲ GoodMajor
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.
7 June 2022drilling progress report● Neutral
Central reports Palm Valley-12 at section depth of 1,998m on 6 June, 51m drilled in the week after fluid losses. Casing is being cemented and faster drilling is expected. Same content as the NZOG release.
7 June 2022drilling progress report● Neutral
NZOG relays Central's update: Palm Valley-12 reached section depth of 1,998m on 6 June, only 51m in a week, with the 9 5/8-inch casing being cemented. Central expects faster drilling afterwards. Arumbera target still 3,560m; Cue holds 15%.
31 May 2022drilling progress report▼ Bad
NZOG relays that Palm Valley-12 reached only 1,947m by 30 May, just 67m in a week, as fractures in the P1 unit cause fluid losses needing repeated cement jobs. Drilling is slower than anticipated; Cue holds 15%.
31 May 2022drilling progress report▼ Bad
Central reports Palm Valley-12 at 1,947m on 30 May, only 67m drilled in a week as fractures in the P1 unit cause fluid losses and repeated cement jobs. Same content as the NZOG release; Cue holds 15%.
24 May 2022drilling progress report● Neutral
Central reports Palm Valley-12 at 1,880m in the Pacoota P1 unit, apparently intersecting the fracture system, which it calls encouraging. Fluid losses slowed progress to 193m in a week. Same content as the NZOG release.
24 May 2022drilling progress report● Neutral
NZOG relays Central's update: Palm Valley-12 at 1,880m, in the main productive Pacoota P1 zone, where natural fractures were hit, which the operator calls encouraging. Fluid losses slowed drilling to 193m in a week. Cue holds 15%.
17 May 2022drilling progress report● Neutral
Central reports Palm Valley-12 at 1,687m on 16 May, with 584m drilled in line with expectations. The 12¼-inch section is due to finish around 2,005m on 18 May. Same content as the NZOG release.
17 May 2022drilling progress report● Neutral
NZOG relays Central's update: Palm Valley-12 at 1,687m on 16 May, 584m drilled in the week. The 12¼-inch section is due to finish around 2,005m on 18 May. Cue holds 15%.
11 May 2022joint venture update▼ BadMajor
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.
11 May 2022joint venture update▼ Bad
Cue relays Central's news: Pacoota-3 is a possible extra appraisal target at Palm Valley-12, with no decision yet. Costs for PV12 and Dingo-5 exceed forecasts by A$3.1m to 30 April and may rise. Cue pays its share plus carries Central's.
10 May 2022drilling progress report● Neutral
Palm Valley-12 reached 1,103m on 5 May, the planned end of the 17.5-inch section. The 13 3/8-inch casing is cemented and drilling of the next hole section resumes 10 May. No new result.
4 May 2022material agreement▲ GoodMajor
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.
3 May 2022drilling progress report● Neutral
NZOG relays Central's 3 May update: Palm Valley-12 at 820m, 599m drilled in the week, casing planned at 1,100m. Repeats the Central release.
3 May 2022drilling progress report● Neutral
Central reports Palm Valley-12 at 820m on 2 May, with 599m drilled in the week. The 17.5-inch section is planned to end at 1,100m, then casing is run. No new result.
27 Apr 2022quarterly activities report● NeutralMajor
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.
26 Apr 2022drilling progress report● Neutral
Central reports Palm Valley-12 at 221m on 25 April, drilling ahead after cementing the 20-inch conductor. Arumbera target is 3,560m, total depth 3,980m in early June. Same content as the NZOG release.
26 Apr 2022drilling progress report● Neutral
NZOG relays Central's update: Palm Valley-12 was at 221m on 25 April, drilling ahead after setting the conductor. Arumbera target is at 3,560m; total depth 3,980m expected early June. Cue holds 15%.
19 Apr 2022drilling spud● NeutralMajor
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.
19 Apr 2022drilling spud● Neutral
Cue confirms Palm Valley-12 began drilling on 17 April 2022, targeting the deeper Arumbera Sandstone, with a Pacoota sidetrack if that fails. Expected to take about 61 days. Cue holds 15%. Repeats the NZOG release.