Cue Energy raises $10m via share placement for Oyong development

Australian oil company Cue Energy Resources Ltd said Wednesday it had agreed to place 40 million ordinary fully paid shares with clients of Cartesian Capital Pty Limited to raise a total of $10 million to finance the development of Oyong oil and gas field offshore East Java.

Cue said the Oyong development would consist of a simple well head structure formed by triangular braced surface well conductors which will extend above the sea surface.

Accoding to Cue, development wells will be drilled through and between the conductors. Up to seven development wells can be drilled through each structure. Oil and gas will be processed on a nearby moored barge.

?Oil will be exported by shuttle tanker. Gas will be sent by pipeline to the PT Indonesia electricity generating station at Grati, East Java, with first gas expected around 2006,? Cue said.

The company also said that solution gas associated with the early oil production will be reinjected until gas production begins to Grati.

Participants in the Sampang PSC in which the Oyong development is located are: Cue Sampang Pty Ltd (15 percent), Santos (Sampang) Pty Ltd (45 percent and Operatorship), and Singapore Petroleum Company Limited (40 percent). (Robert)