Release: Cue Energy: Oyong field update

(27, June 2007) -- The operator of the Sampang Production Sharing Contractor (Sampang PSC), Santos (Sampang) Pty Ltd has advised that first oil production from Oyong field previously targeted by Cue for early in the third quarter of 2007, has been delayed to late in third quarter of 2007. This delay is a result of procurement issues associated with conversion of the Oyong production barge.

 

It is expected that production will be between 8,000-10,000 bbl's per day post commissioning and testing. Oyong is a phased development with oil due to be augmented by gas production in late 2008. The gas phase of the project is not affected by delays in commissioning the oil production barge.

 

Santos holds a 45% interest in the Sampang PSC, while Singapore Petroleum Sampang and Cue Energy hold 40% and 15%, respectively. (end of release)