• Extension of BP option to acquire 42.5% equity in WA - 359 - P until 25 April 2018
• 75% funding for the Ironbark - 1 exploration well conditionally secured
Melbourne, Australia; Cue Energy Resources Ltd (ASX:CUE) is pleased to advise that through its 100% owned subsidiary, Cue Exploration Pty Ltd, it has agreed to extend the 42.5% equity option over exploration permit WA - 359 - P granted to BP Developments Australia Pty Ltd (BP), as announced on 13 October 2016, until 25 April 2018 , with a further 6 month extension available under certain circumstances.
WA - 359 - P Permit
The exploration permit term of WA - 359 - P currently expires on 25 April 2018. Cue intends to submit a suspension and extension application to the National Offshore Petroleum Titles Administrator (NOPTA) to allow new technical information to be incorporated into the Ironbark - 1 well planning process.
Beach Energy Farmout Agreement
On 29 Nov 2017, Cue announced an agreement with Beach Energy Limited (Beach) to farmout 21% equity in WA - 359 - P (1) . Under the terms of the agreement, Beach will acquire 21% equity a nd free carry Cue for 4% of the cost of drilling the Ironbark - 1 exploration well in the permit . 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 WA - 359 - P, Cue obtaining an extension to the current permit end date and other customary approvals .
Through the BP and Beach agreements, 75% funding for the Ironbark - 1 well has been conditionally secured.
Ironbark is a giant Mun garoo Formation prospect that is mapped with an area of up to 400km 2 and a best technical estimate of 15 Trillion cubic feet (Tcf) of prospective recoverable gas resource ( 2 ) based on an internal assessment performed by Cue.
Wood Mackenzie estimates that the North West S helf 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: