Maari production drives Cue Energy’s profit up

Maari production drives Cue Energy’s profit up 150%

Cue Energy has reported an AUD $8.4M profit (increase of 150%) and AUD $30.9M in revenue (increase of 72%) in its half-year financial report released to NZX and ASX.

Richard Tweedie, Cue Energy Chairman said “the significant increase can be attributed mainly to revenue of $28.51M from increased oil production from the Maari field in the Taranaki basin, and the commencement of gas production at Oyong in the Sampang PSC, Indonesia.”

“The net profit was primarily as a result of increased production receipts and comparatively negligible impairment write downs,” he added.

Cue’s revenue is up 72 per cent from the previous corresponding period's AUD $17.9m.

Cue's net share of oil production from the Maari field was 200,815 barrels for the half-year. Overall Cue production increased from 148,479 bbls to 334,434 bbls.

In the same period, Cue completed development drilling on the Maari field and the shallower M2A oil development well was successfully drilled and completed.

“As a result, oil production has now commenced from the M2A appraisal /development well, MR9, on the Maari Field and flow testing will continue for several days,” said Mr Tweedie.
“The M2A zone is estimated to contain P50 oil-in-place of 33.6 million barrels,” he added.

The Manaia-1 oil appraisal well was also successfully drilled from the Maari platform to a measured depth of 7,945 metres, a New Zealand record, and the lower completion installed.

“These two wells increase Cue’s net proved and probable oil reserves by 475,000 barrels” said Mr Tweedie.

During the half year, Cue also increased its exploration presence in New Zealand when it obtained 20% interests in high potential permits PEP51313 (Te Whatu) and PEP51149 (Tohu) in the Taranaki Basin. Todd Energy operates these licenses with a 50% interest in Te Whatu and a 40% interest in Tohu.

In WA-389-P, where Cue holds a 100% interest, interpretation of new 3D data strongly enhanced the potential of the very large Caterina gas prospect in the Carnarvon Basin, Western Australia. Cue believes Caterina has gas in place of 11 trillion cubic feet which would be sufficient gas for a large LNG development.

Mr Tweedie confirmed that Cue has begun a farm-out campaign for the permit with significant interest from a number of large international oil companies. Caterina is approximately 60km from Woodside’s Pluto LNG development and Chevron’s Wheatstone LNG development.

“Cue has a diverse portfolio of assets ranging from producing oil fields to exploration areas, plus significant discovered gas resources and I believe the company is well placed to continue its path of significant growth for its shareholders,” commented Mr Tweedie. ENDS

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