Cue Energy reports Indonesian operation

The following is an excerpt from Australian energy firm Cue Energy Resources? quarterly report released on Wednesday.

Sampang PSC - Oyong Field - Madura Strait, East Java, Indonesia (15% interest)

Operator: Santos

Oyong Field

Cue?s oil production revenue received during the quarter from the field was A$3.4

million and equated to 42,485 barrels of oil.

The average oil production rate for the quarter was 3,800 barrels of oil per day. Gas production from the field began on 1 October 2009. Cue?s gas production

revenue received during the quarter from the field was A$0.47 million and equated to 160 million cubic feet of sales gas.

Cue did not have any hedging arrangements in place during the quarter.

Wortel Field

A plan of development for the Wortel field was approved by BPMIGAS during the quarter. The development will consist of a well head platform, two gas development wells and a seven kilometre pipeline to the Oyong facilities. Wortel is estimated to contain gross gas reserves of 1P 66 BCF, 2P 103 BCF, 3P 121 BCF. Cue will book these as at YE 2009. Front end engineering and design (FEED) studies are expected to begin in the first quarter 2010 and first gas is now expected in the second half of 2011.(end of excerpt)