Wortel gas field development approved

Cue is pleased to announce that the Sampang PSC Joint Venture has approved the development of the Wortel gas field in offshore East Java.

The Wortel development is expected to consist of a small wellhead platform with two gas production wells and an approximately 10 kilometre pipeline to the Oyong facilities where the gas will be transported down the existing pipeline to Grati.

First gas production expected around the end of 2011. The Wortel development costs are estimated to be US$100 million gross with Cue?s share US$15 million.

Recoverable gas volumes for Wortel are currently assessed as 118 billion cubic feet gross in a mid case Cue?s share approximately 16 BCE. This represents an approximate 140% increase in our gas reserves.

Gross gas production rates from Wortel and Oyong are expected to be around 90 mmscf/day at plateau rates. Oyong is currently producing approximately 3500 barrels of oil per day and about 60 mmscf/d of gas, gross.

Participants in the Sampang PSC are:
Cue Sampang Pty Ltd 15%
Santos Sampang Pty Ltd (operator) 45%
Singapore Petroleum Sampang Ltd 40% (romel)