Cue Energy reports Indonesian operation

The following is an excerpt from Australian energy firm Cue Energy Resources? quarterly report released ended September 3o, 2011 released on Wednesday.

Sampang PSC ? Madura Strait (15% interest)
Operator: Santos

Oyong Field
Oil production continued at an average rate of 2,440 bopd for the quarter which is above the 2011 budget of 2000bopd. Cue?s share of oil sales receipts was 45,324 barrels which generated A$4.9 million in revenue received during the quarter. Cue?s share of gas sales receipts was 655,346 million cubic feet which generated A$1.7 million in revenue received during the quarter. The Oyong facility continues to operate in excess of 98% uptime.

The Oyong facility was shut down on 28th September to execute the project works required to tie in the Wortel wellhead platform and for installation of the Oyong Platform jacket extension.

Wortel Field
The Wortel gas field development continues to progress to plan with first gas expected in December 2011. The project is expected to be completed within the budget of USD105.1 million (Cue share USD15.8 million). The Wortel wellhead platform jacket and the Oyong platform jacket extensions have been successfully installed and piled into position. The pipeline interconnecting Wortel with Oyong is currently being laid. The combined Oyong and Wortel gas production rate is expected to be around 90 mmscf per day from the end of 2011.

Mahakam Hilir PSC (40% interest)
Operator: Singapore Petroleum

Cue has received approval from MIGAS for the farmin to the Mahakam Hilir Permit. The farmin transaction has been completed and the farmin consideration paid to SPC. Preparations are underway to drill the first two exploration wells called Naga Utara (Northern Dragon) and Naga Selatan (Southern Dragon). Drilling is expected to commence in December. The most likely recoverable reserves have been estimated to be 80BCF of gas and 20 million barrels of oil from the two prospects, respectively. (end of edited excerpt)