ooyong announcement

Interesting that CUE put this out after other announcements and did not set a market flag.

With obvious implications to revenue, I find it very interesting.




Fax sent by : 61 3 9629 7318 CUE ENERGY 03/02/03 12: 10 Prr : 2/3
Cue Energy Resources Limited
A.B.N. 45 U66 383 P71
RELEASE
Ovow Gas Agreement Signed
Santos Limited, the operator for the Sampang PSC Offshore East Java, Indonesia, today
announced the signing of a Heads of Agreement for the sale of the enl.ire gas reserves of
the Oyong field. A copy of the Santos release is attached.

Cue Comment
The signing ol' the Heads of Agreement for the sale of the entire ({,as reserves of the
Oyong field is a significant milestone for Cue, which has a 15% interest in the
Production Sharing Contract through its 100% owned subsidiary Cue (Sampang) Pty
Ltd.
The gas sale, with associated oil production, will provide Cue with substantial cash flow
over a period of several years and will compliment the revenue the company receives
from the SE Gobe oil field in Papua New Guinea.
Santos has estimated that Oyong contains 90 billion cubic feet of recoverable gas with
an initial, conservative, rccovery of 5 million barrels of oil from the 80 million barrels
of oil that are estimated to be in place in the oil column. Oyong hrls a 120 metre gas
column underlain by a 38 metre oil column. The gas will be produced from three central
wells and the oil initially from 2 or 3 horizontal wells. Because of the unique nature of
the globigerina grainstone limestone reservoir, lor which there is no producing analogue
in the world, the oil wells will be initially produced at moderate rates to determine
reservoir performance. Additional horizontal oil wells will be drilltxl as required and
additional ail reserves may be produced, depending on field performance.
Fax sent by : 61 3 9629 7318 CUE ENERGY 03/02/03 12: 10 Prr : 3/3
The Sampang PSC also contains a number of altractive undrilled prospects, one of
which is assessed to have the potential to hold in excess of 2 trillion cubic feet o f
recoverable gas. Cue expects that two o f these are likely to be drilled around mid year
2003.
Robert J Coppin
Chief Executive Officer
3 February 20103