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Empowered by an experienced board and management team, Cue Energy (CUE) is capitalising on its existing portfolio of strong cash flow-generating assets across the Asia Pacific, which it believes offers tremendous production upside and exploration potential.
With offices in Melbourne and Jakarta, the diversified oil and gas production company holds a suite of strong-performing projects in Indonesia, Australia and New Zealand.
During the last quarter, the company secured $13 million in revenue with a healthy $3.6 million in net cash flow. Ending the period with $18.4 million in cash, Cue has the balance sheet for long-term growth potential with secure funding and strong support from major shareholders.
In Australia, Cue supplies gas to the domestic market via its Mereenie, Palm Valley, and Dingo Fields projects in the Northern Territory. Strong gas prices and a new production well, PV-12, drilled in the Palm Valley field are providing increased revenue generation.
Current production from the fields stands at around 45 terajoules per day (Tj/d) with long field lives underpinning a positive outlook.
The joint ventures in these fields are focused on increasing gas production and market supply with new well results expected from the Mereenie field during 2023.
In Indonesia, Cue holds an interest in two onshore and offshore oil and gas production projects, Mahato and Sampang.
Cue holds a 12.5 per cent stake in the low-cost onshore oil production at Mahato in Indonesia, with current production at approximately 6300 barrels of oil per day from 15 wells and increasing with ongoing development drilling.
As part of this ongoing development drilling, the company recently announced its PB-20 production well produced up to 800 barrels of oil per day (bopd), pushing current field productions up 33 per cent higher than levels at the start of FY2023.
“PB-20’s successful completion and the increase in field production demonstrate the ongoing success of the development drilling campaign and the tremendous potential of the Mahato PSC,” Cue Energy Resources CEO Matthew Boyall said.
At Sampang, offshore gas production powers the East Java province via its two gas fields, Oyong and Wortel. The project reduces reliance on coal, supporting the nation’s growing energy demand, and East Java’s industrial and economic development.
Moving forward, the company anticipates additional new gas production in 2025 at Sampang, with government approvals expected in the September quarter at the Paus Biru gas field. Cue is expecting first production at 20 million to 25 million cubic feet per day (mmcfd).
Meanwhile, in New Zealand, the company produces oil at more than 5000 bopd from seven wells in the Maari field.
Cue recently reported solid results at its Maari oilfield, with $3.2 million in cash receipts in Q3 FY23. The oil from Maari attracted a high premium compared to the Brent benchmark price, with one cargo holding 24,100 barrels sold by Cue at an average price of $127.2 per barrel.
“Post the strong production and cash flow results reported in FY22, we are delighted with the start Cue has made to FY23 and look forward to our extensive development and exploration pipeline sustaining this performance over the remainder of the year,” Mr Boyall said.
Backed by major strategic shareholders NZOG/Ofer Global and SPC/PetroChina, Cue is focused on maximising production from its existing asset base, while also investing in a pipeline of future attractive growth opportunities. With strong cash flow generation and balance sheet, Cue is readied to make the most of its development, exploration and new venture opportunities. A strong and busy start to 2023 looks set to continue.
