Yvonne Ardley:
Cue Energy Resources (ASX:CUE) has been exploring the Asia-Pacific region to acquire new assets and develop existing projects. To discuss the findings, I’m joined by CEO Matthew Boyall. Welcome Matthew.
Matthew Boyall:
Thanks Yvonne.
Yvonne Ardley:
So firstly, Matthew, can you give us an update on Cue and its projects?
Matthew Boyall:
“Cue is a production company that has a diversified portfolio of projects producing oil and gas in New Zealand, Australia and Indonesia. We are cashflow positive in production from all these assets. In Indonesia, we produce both oil and gas onshore and offshore. In New Zealand, we produce offshore oil. And in Australia, we participate in the domestic market through our production of gas from Mereenie, Palm Valley and Dingo fields in the Northern Territory. These give us a great cashflow, great lot of revenue. In the last quarter, we produced $13 million of revenue and $3.6 million of cash flow. So continually adds to our balance sheet and great production assets”.
Yvonne Ardley:
So, what actually separates Cue Energy from other explorers?
Matthew Boyall:
“Cue Energy is very unique. We’re a diversified production company. We have actual oil and gas production and revenue from projects in three countries in their region. We also have growth options and these are development options. So at each of our projects, we are drilling wells that have a low risk upside. In the Mahato onshore Indonesia, we’re drilling five more wells. The last well produced 800 barrels a day and there’s five more to go this year. And in onshore Australia in the Mereenie field, the joint venture’s planning two additional gas wells later on in the year to enhance our gas production into the East Coast of Australia.”
Yvonne Ardley:
In terms of growth, how do you see Cue evolving over the next decade?
Matthew Boyall:
“In the short term, we have opportunities at our existing projects to drill development wells and exploration wells. We’ll be continuing our projects to enhance our production where we have production already. In onshore Indonesia, we have an exploration well that is due to be drilled in a couple of months. So, depending on how that goes, we would look to another, hopefully, another development there over the next few years. And offshore Indonesia in the Sampang PSC, we have a project called Paus Biru that is ready to take a final investment decision that will provide gas to Indonesia in about 2025. We have very strong cash flows, so building up our balance sheet, we have strong and supportive major shareholders that will enable us to grow in the region in both our conventional and possibly over the longer term, the new energies.”
Yvonne Ardley:
Matthew Boyall from Cue Energy Resources, thanks for joining me today.
Matthew Boyall:
Thanks Yvonne.