Release: Mangga -1 begins drilling

Australian-based Cue Energy Resources Limited is pleased to announce that Mangga -1 spudded on Saturday 27 September 2003. Mangga -1 is located approximately five kilometres west of the Anggur -3 well and approximately 20 kilometres east of the city of Surabaya in the Sampang PSC offshore East Java, Indonesia. The well is in 11 metres of water.

Mangga -1 will test the Mundu Formation, which contains oil and gas in the Oyong oil and gas discovery, within a four way dip closure, approximately 110 metres updip of gas shows in the Anggur -3 well.

Mangga is assessed to have the potential to contain approximately 110 billion cubic feet of recoverable gas (P50 case) up to a high side case of approximately 320 billion cubic feet of recoverable gas.

Mangga -1 is expected to take 12 days from spud to a total depth of 1,750 metres (drill depth) with the Mundu Formation expected to be penetrated approximately seven days to eight days from spud. Mangga is being drilled using the SEDCO 601 semi submersible drilling rig.

Participants in the Sampang PSC are :
Cue Sampang Pty Ltd 15 percent
Santos (Sampang) Pty Ltd 45 percent (Operator)
Coastal Indonesia Sampang Ltd (El Paso) 40 percent

Any queries regarding the announcement should be directed to the company on (03)96297577 or email mail@cuenrg.com.au. (end of release)