Cue completes placement to finance E. Java oil, gas development

Australian oil firm Cue Energy Limited announced on Wednesday it had finalized placement of 40 million of ordinary shares to raise A$ 10 million, which will be used to finance Cue?s share of the initial development of the Oyong oil and gas field in Sampang PSC, East Java.

First oil from the field is expected in the third quarter of 2005, with gas flowing the following year. Oyong is expected to flow average 9,000 barrels of oil per day in the first two years, with peak production expected at 20,000 BPD.

Cue has 15 percent working interest in Sampang PSC. Operator Santos Limited has 45 percent and Singapore Petroleum Company has the remaining 40 percent. (alex)