Cue to raise funds for reinstatement interest in Jeruk field
Tuesday, May 10 2005 - 10:22 AM WIB
Australian company Cue Energy Resources Limited plans to make a prospectus for renounceable pro-rata entitlement offer to raise A$17.3 million or about US$13.4 million (less fees) mainly to finance its reinstatement interest in Jeruk field in East Java.
Cue said the funds raised would also be used to fund its share of the estimated cost of the Jeruk-2 re-entry, sidetrack, coring and testing programme.
Cue holds a 15 percent of working interest in Santos Limited-operated Sampang Block, where the Jeruk field is located.
Cue has said it was obligated to pay in cash a lump sum amount of approximately US$9 million (A$11 million) which is equivalent to the cost it would have incurred if it had participated in the Jeruk-1 and -2 wells.
The lump sum is required to be paid by 29 May 2005. In addition, Cue will be required to pay a penalty out of oil production. (Robert)