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Cue Energy Resources Sampang Drilling Update

Cue Energy Resources Sampang Drilling Update

Jeruk -3 DST -1A

Drill stem testing of the Jeruk -3 zone from 4939 to 4978 metres is continuing.
The flow test procedure had to be restarted after control line pressure was lost
prior to completion of the main flow period of the initial test, causing the well to be temporarily shut in.

The forward plan is to complete DST -1A and continue the evaluation of the
Kujung reservoir.

Herbras -1

At 6 am on 26 May 2006, the well was running 20 inch casing at a depth of 574
metres. Cue understands that the well will be drilled to a depth of 2700 metres
over a thirty day period.

Participants in the Sampang PSC are:

Santos (Sampang) Pty Ltd 40.5% (Operator)

Singapore Petroleum Sampang Ltd 36%

Cue Sampang Pty Ltd 13.5%

PT Petrogas Oyong Jatim* 10%

*Subject to finalization.

Ends

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