Cue Energy updates Indonesian activity

The following is an excerpt from Cue Energy Resources? fourth quarter report released on Thursday.

Sampang PSC - Oyong Field
Madura Strait, East Java, Indonesia (15% interest)
Operator: Santos (45% interest)

Cue?s oil production revenue received during the quarter from the Oyong field was A$5.66 million and equated to 38,234 barrels.

The average production rate for the field for the quarter was approximately 4700 barrels of oil per day, which was in line with expectations.

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

DEVELOPMENT ACTIVITY

Oyong Gas Phase
Steady progress on the gas development phase continued during the quarter with overall progress at the end of the quarter being 54% against planned 56%. During the quarter, laying of the offshore pipeline began and was continuing at the end of the quarter. Construction of the onshore processing facilities at Grati continued during the quarter.

First gas production remains on schedule for third quarter 2009.

Wortel field
A draft Plan of Development (POD) has been forwarded to the Indonesian authorities for consideration but has not yet been approved.

EXLPORATION ACTIVITY

General exploration studies continued during the quarter. (end of excerpt)