CUE 3.33% 15.5¢ cue energy resources limited

on the ball with oyong

  1. 1,747 Posts.
    Hi Guys,

    This all looks very promising for CUE particularly if they can finance the construction without the need to go to shareholders.

    With better than 40 cents per share in reserves we may see Cue become a market darling.

    Good Luck to the patient holders.

    Regards M.

    CUE ENERGY RESOURCES LIMITED 2003-03-19 ASX-SIGNAL-G

    HOMEX - Melbourne

    +++++++++++++++++++++++++
    Substantial progress has been achieved towards the development of the
    Oyong oil and gas field, which is located in the Sampang PSC offshore
    east Java, Indonesia.

    Contracts have been awarded for front end engineering design, for
    pipeline route and platform location surveys and for an environment
    impact assessment study.

    Negotiations are proceeding rapidly on a Gas Sale Agreement which is
    expected to incorporate the terms of the Heads of Agreement which was
    signed on 1 February 2003 between the Sampang PSC participants and PT
    Indonesia Power for the sale of the entire gas reserves of the field.

    First gas supplies from the Oyong field are expected to begin in late
    2004 at a minimum rate of 40 million cubic feet of gas per day
    delivered to the Indonesia Power electricity generating plant at
    Grati.

    The field will be developed using a single centrally located platform
    with both oil and gas being transported to Grati in a multiphase 14
    inch pipeline.

    Oil and gas will be separated and processed onshore, where the gas
    will be delivered to Indonesia Power and the oil stored for export.

    FINANCE

    Cue is currently in detail discussions with potential lenders who
    have expressed an interest in project financing Cue's A$25 million
    share of the estimated approximately US$100 million gross capital
    cost.

    BACKGROUND

    Oyong was discovered in mid 2001 and has been delineated by the Oyong
    - 1, -2 and -3 wells. The field has a 120 metre gas column underlain
    by a 38 metre oil column. The gas consists of mainly methane with
    approximately 1% carbon dioxide and no hydrogen sulphide. The oil is
    approximately 41 deg API with no sulphur. The field is assessed to
    contain approximately 90 billion cubic feet of recoverable gas and an
    initial, conservative recovery of 5 million barrels of oil from the
    80 million barrels of oil that are estimated to be in place.

    The gas is planned to be produced from 2 centrally located production
    wells and the oil from 2 or 3 horizontal wells. The oil will be
    initially produced at moderate rates to determine reservoir
    performance with additional horizontal wells being drilled as
    required. Additional oil reserves may be produced, depending on field
    performance.

    The Sampang PSC also contains a number of attractive undrilled
    prospects, one of which is assessed to have the potential to hold in
    excess of 2 trillion cubic feet of recoverable gas. Addition infill
    2D seismic was acquired over a number of prospects in 2002 and early
    2003. This data is currently being evaluated. Cue expects that the
    two most attractive prospects are likely to be drilled in third
    quarter 2003.

    Participants in the Sampang PSC are:-

    Cue Sampang Pty Ltd 15%
    Santos (Sampang) Pty Ltd 45% (Operator)
    Coastal Indonesia Sampang Ltd 40%

    Any queries regarding the announcement should be directed to the
    company on (03) 96297577.


    R J Coppin

 
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