• Extension of BP option to acquire 42.5% equity in WA-359-P extended by 6 months until 25 October 2018
Melbourne, Australia 17 April 2017; Cue Energy Resources Ltd (ASX:CUE) is pleased to advise that through its 100% owned subsidiary, Cue Exploration Pty Ltd, 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, has been extended by 6 months until 25 October 2018.
The exploration permit term of WA-359-P currently expires on 25 April 2018. Cue has submitted 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.
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 resource(1) based on an internal assessment performed by Cue.
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.
BP and Beach Energy Agreements
As previously announced, Cue has executed agreements with BP(2) and Beach Energy(3)related to equity in WA-359-P. Through these agreements, 75% funding for the Ironbark-1 well has been conditionally secured. Cue is continuing discussions on funding options for the remainder of the well cost.