Release: Cue Energy: Indonesian drilling update

Friday, May 12 2006 - 09:44 AM WIB

Jeruk -3 sidetrack 1, deviated appraisal well,
Sampang PSC, Offshore East Java.
At 5pm on Thursday 11 May 2006, drilling operations were, running into the hole to cut core 1 at the top of the Kujung limestone objective.

Dukuh -1 Exploration Well,
Sampang PSC
At 5pm on Thursday 11 May 2006, drilling operations were, conditioning mud at 2685 metres measured depth prior to drilling ahead in 8 1/2 inch hole.

Participants in the Sampang PSC are:
Santos (Sampang) Pty Ltd 40.5% (Operator)
Singapore Petroleum Sampang Ltd 36%
Cue Sampang Pty Ltd 13.5%
PT Petrogas Oyong Jatim* 10%
*Subject to finalization.

Source: Cue Energy Resources Limited

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