80 Meter oil in PNG, page-3

CUE ENERGY RESOURCES LIMITED 2002-06-04 ASX-SIGNAL-G

HOMEX - Melbourne

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Cue is pleased to announce that the Southeast Gobe 1 Sidetrack 1 well
in Papua New Guinea has penetrated an approximately 80 metre gross
oil column in the objective Iagifu reservoir sand which was
encountered approximately 10 metres high to prediction. A 7 inch
production liner is being run and the well completed. Oil production
is expected to begin around mid June 2002.

SEG-1 ST-1 was drilled as a deviated oil well to penetrate the Iagifu
reservoir approximately 300 metres to the northeast and approximately
50 metres downdip of the current SEG-1 intersection.

A side track of the SEG-10 well will follow completion of SEG-1 STI.

Cue has a 3.285651% interest in the SE Gobe field unit, with a
current overlift interest of 3.8565% to compensate for past under
lifting.

Participants in the SE Gobe Unit are as follows:

Cue PNG 3.3%
Chevron Niugini 7.9%
Exxon Mobil 5.9%
Merlin Petroleum 2.8%
Oil Search Limited 44.9%
Petroleum Resources Gobe 2.0%
Southern Highlands Petroleum 23.7%
Santos 9.4%
Total 100.0%

A location map is attached.

Any queries regarding this announcement should be directed to the
Company on 03 9629 7577.


R J Coppin
CHIEF EXECUTIVE OFFICER