Press

Cue Energy: WA-359-P Farmout and WA-409-P Option Agreements with Beach Energy


  •   Beach Energy to acquire equity in WA-359-P and an option over WA-409-P

  •   Beach to carry Cue well costs in WA-359-P and WA-409-P if option exercised

  •   75% funding for the Ironbark-1 exploration well now conditionally secured

    Melbourne, Australia 29th Nov 2017; Cue Energy Resources Ltd (ASX:CUE) is pleased to advise that through its 100% owned subsidiary, Cue Exploration Pty Ltd, it has executed agreements with Beach Energy Limited (Beach) for Beach, subject to conditions and approvals, to acquire equity in North West Shelf exploration permits WA-359-P and WA-409-P in the Carnarvon Basin, offshore Western Australia, which contain the giant Ironbark gas prospect.

    WA-359-P Farmout Agreement

    Under the terms of the WA-359-P Farmout Agreement, Beach will acquire 21% equity and free carry Cue for 4% of the cost of drilling the Ironbark-1 exploration well in WA-359-P. Beach will also reimburse Cue $900,000 for past costs.

    The agreement is conditional on BP exercising its option to acquire 42.5% equity in the WA-359-P (1), Cue obtaining an extension to the current permit end date and other customary approvals.

    WA-409-P Equity Option

    Cue has also granted Beach an option over 7.5% equity in exploration permit WA-409-P, adjoining WA-359-P. If Beach exercise this option, Beach will free carry Cue for 7.5% of the costs of drilling a well in WA-409-P. Cue will also receive a 10% royalty on all future revenue from Beach's 7.5% equity in the permit. The option may be exercised until July 2019.

    Ironbark Prospect

    Ironbark is a giant Mungaroo Formation prospect that is mapped with an area of up to 400km2 and a best technical estimate of 15 Trillion cubic feet (Tcf) of prospective recoverable gas resource2 based on an internal assessment performed by Cue.

    Wood Mackenzie estimates that the North West Shelf LNG plant and infrastructure will have spare capacity from 2021.The Ironbark prospect is less than 50km from the North Rankin platform (North West Shelf LNG) and in close proximity to Pluto and Wheatstone LNG infrastructure, providing cost effective commercialisation options.

    Cue CEO Matthew Boyall said:

    “These agreements are another major step forward in securing partners and funding to drill the Ironbark well. They display the confidence that another major company has in Cue's Ironbark prospect. Including the BP 42.5% option, Cue has now conditionally secured 75% of the funding for the Ironbark-1 well and retains potential long term value from any success in WA-409-P through a revenue royalty.

    Cue currently retains 36.5% uncommitted equity in WA-359-P and we continue to talk to companies interested in forming a Joint Venture together with Beach and BP to share in this high impact opportunity.”



New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site

cuenrg.com.au/irm/content/asx-announcements.aspx?R...

Cue EnergyAustraliaBeach EnergyFarmout AgreementOffshoreWestern Australia

More items from oilvoice


Africa E&P Summit

The organisers of the Africa E&P Summit are bringing together Africa's leading exploration companies and governments, just one of the many reasons why you should be attending frontier's event that they are organising and hosting in London at the IET: Savoy Place, 22-23 May. Over 200 key senior exec ...

OilVoice Press - OilVoice


Posted 2 months agoPress > Africasummitoil summit +2

Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice


Posted 7 months agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice


Posted 7 months agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice


Posted 7 months agoPress > CNOOCChina National Offshore Oil CorporationChevron +11

Total Announces the Distribution of its Second 2018 Interim Dividend

The Board of Directors met on December 12, 2018 and declared  the distribution of a second interim dividend for the 2018 fiscal year of €0.64 per share, in accordance with the Board's decision of July 25, 2018, an amount equal to the first 2018 interim dividend and an increase of 3.2% compared to t ...

OilVoice Press - OilVoice


Posted 7 months agoPress > TotalDividend
All posts from oilvoice