Release: Cue Energy: Jeruk -2 ST 4 appraisal sidetrack begins

Cue is pleased to announce that the reentry of Jeruk -2 began on 29 May 2005. The Jeruk oil discovery is located in the Sampang Production Sharing Contract area, offshore East Java, Indonesia, in approximately 44 metres water depth.

It is planned to sidetrack the well out of the existing well bore with the objective of intersecting the reservoir at a point about 200 metres south west of the Jeruk -2 sidetrack 2 reservoir penetration and to then run a production test at the top of the reservoir before cutting a number of cores. Additional production tests will be run deeper in the well as required. The planned total depth is 5570 metres measured depth.

The well should be finished in around 85 days, depending on coring and testing requirements.

Participants in Jeruk and the Sampang PSC are:
Cue Sampang Pty Ltd 15%
Santos (Sampang) Pty Ltd 45% (Operator)
Singapore Petroleum Sampang Pte Ltd 40%

Any queries regarding this announcement should be directed to the Company on 03 9629 7577. (end of release)

Source: Cue Energy Resources Limited