Cue Energy Resources Ltd has been notified by the National Offshore Petroleum Titles Administrator of the approval of its application for a suspension of the Permit Year 3 work program commitment for WA-359-P. The Year 3 work commitment comprises the drilling of one exploration well which is now due by October 2016. Cue has 100% equity and is operator of WA-359-P and the adjoining WA-409-P.
Cue has recently completed a comprehensive regional study, including the creation of a seismic super-cube with 15,000km2 of 3D and 2D seismic data and 17 well ties. This has allowed Cue to map Triassic intra-Mungaroo sands (as encountered at the Gorgon gas field) on a regional scale and to define the Ironbark prospect, which straddles both WA-359-P and WA-409-P in moderate water depths. Ironbark is a giant, Mungaroo Formation prospect with multiple objectives. The structure is a simple NE-SW horst block with symmetric rollover, mapped as 140 - 400 km2 in area with a best technical estimate of more than 15 Trillion cubic feet (Tcf) of unrisked prospective gas resource based on internal technical assessment performed by Cue. Cue has initiated a farm-out process to find a suitable JV partner to participate in the drilling of a well targeting the Ironbark prospect.