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CUE - CUE ENERGY RESOURCES LIMITED


Barrios

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Should be a ripper growth profile revealed in next weeks qtrly . Lots of production drilling going on at Maari and exploration drilling around the corner .

Also, I think the market has just switched on the reality that MEO will be farming down their 70% equity in Artemis to 20% . The monies they get for that farmout will be spent drilling their's and CUE's Artemis well in early 2010 . If they don't drill in 2010 CUE's Artemis position increases to 20% and MEO's reduces . Win win for CUE I'd say .

This mornings gap closed .

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.....and the thing i like about this is that they have shot the easy elephants first (maari, indo) to generate cash flow pre NWS which generally will be explored for free and any development should be by revenue and bank facilities rather than endless cap raising like so many others eg MEO which has really blown a heap of shareholders cash and market confidence.

 

these guys seem smart although we have needed to be patient with a longer term horizons than day traders generally stomach.

 

Our day of retirement is near...

 

 

 

 

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Artemis could be the fastest gas prospect/discovery in the NW Shelf to be developed into production.

It looks like an exciting play to my eyes.

 

Question - Who wants it the most. Woodside or Chevron????

Woodside is my bet.

 

Hey and if the Rose prospect works out too we can all go fishing every day.

 

 

Woodside's bold prediction: big plans for Pluto

Barry FitzGerald

July 25, 2009

WOODSIDE has moved to quell doubts that it could move quickly to expand its $12 billion Pluto gas export project, boldly predicting it will award an engineering and design contract for the expansion in the current (September) quarter.

 

But the prediction came with the proviso that Woodside first secure additional gas supplies to underpin Pluto's expansion - something Woodside has yet to resolve, testing the patience of the market.

 

Hopes that Woodside could secure additional gas for Pluto by striking a deal with Chevron on the nearby Wheatstone gas field were dashed in June when the US giant said it planned to use Wheatstone's gas to underpin the development of a $30 billion liquefied natural gas processing hub to be built near Onslow, initially with two LNG processing "trains" but with the intention of eventually going to five processing trains using third-party gas.

 

Woodside had been looking to send Wheatstone gas for processing at an expanded Pluto processing plant, the first stage of which is being built at Karratha. This involves a single processing train and is 65 per cent complete, with Woodside aiming for first gas shipments in late 2010.

 

Goldman Sachs JBWere recently argued that the expansion of Pluto was a necessity for Woodside. It said it would a poor outcome for Woodside if additional gas was not secured and Pluto stayed as a one-train development. The broker also estimated synergy benefits of up to $4 billion if an "unlikely" compact with Chevron was reached.

 

Beyond Pluto, the market is also waiting on Woodside to provide greater certainty on its development plans for the Browse and Sunrise LNG projects, given that competition is coming thick and fast from LNG projects owned by others.

 

Woodside's Pluto prediction was contained in the group's June-quarter oil and gas production report. It showed that lower prices and the loss of some high-margin oil production slashed June-quarter sales revenue by $53 million, or 36 per cent, from $1.47 billion to $938 million.

 

The revenue hit was expected given the collapse in oil prices that came when the global financial crisis hit in September last year. June-quarter production was 19.4 million barrels of oil equivalent (boe), up modestly from 19.3 million boe in the previous corresponding period. Woodside has maintained its 2009 (calendar) year production target at 81-86 million boe.

 

The main area of weakness was at the Vincent oil project. Production fell from 1.49 million barrels in the preceding March quarter to 525,806 barrels (Woodside's 60 per cent share) in the June quarter due to a fire in a high-pressure compressor on board the floating production vessel.

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rats in hats, well that's my cunning plan # 4362 out the window --- I was hoping there would be a long period of pre- and post-rights issue sell down in CUE, keeping share price at or below 15c...

...fantasy plan being to sell my MEO @ >45 and buy CUE @ <15 in the biggest 'time-space arb' ever...

 

...am just hoping now there are no SMH/Age/Australian/West Australian articles on CUE for the next month and all articles on MEO

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I am sure that CUE will keep the market informed ... but for those investors impatient for some good news:

HZN QE 30/07/2009 Activities Report

PMP 38160 and PEP 38413, Offshore Taranaki Basin, Maari Field (Horizon Oil interest: 10%)

In the quarter, 1.2 million barrels of oil were produced from the Maari field. Since the commencement of production to the date of this report, over 2.1 million barrels of oil have been produced, of which 2.0 million barrels have been lifted and sold. The Company has sold 209,000 barrels of Maari production to date, generating sales revenue of US$11.7 million.

The Maari development drilling program, being carried out with the Ensco 107 jack-up rig, was completed on 26 July 2009, considerably ahead of the forecast mid-August completion date. During the quarter, the 3 water injection wells - MR6, MR7 and MR8 - were drilled and equipped and are currently injecting water into the primary Moki formation reservoir to maintain reservoir pressure. Subsequently the MR1 production well was drilled and is currently flowing oil to the FPSO Raroa. The more complicated dual lateral MR2 well was also successfully drilled and equipped for production. It is expected to be hooked up and on stream by early August. Two of the production wells required short workovers to repair a damaged valve in the completion assembly. These were carried out on the MR3 well, which is now back on production and on the MR4 well, which should be back on line by the coming weekend.

During the development drilling phase, production was continually interrupted for safety reasons during lifting and other operations associated with drilling. Horizon Oil intends to advise shareholders on field production rates and performance in August, when all 5 oil production wells are on line.

Work on the wellhead platform and FPSO is essentially complete. The main focus has been on well hook-up and commissioning. Other activities included finalisation of installation contract work scopes, confirmation of all deliverables and close-out of outstanding commercial issues. Also during the quarter, the Maari joint venture approved drilling of an extended reach well to appraise the Manaia structure, which is located 10 km southwest of Maari (see map) and a development well to access the M2A oil reservoir at Maari, which sits above the primary Moki zone. The decision to drill the additional wells was taken in view of the demonstrated good performance of the drilling rig and various teams, the favourable dayrate for the Ensco 107 and the consequence of extending project completion into October, placing rig demobilisation in a better weather window. It is anticipated that the Manaia-1 will spud this weekend and take 45 days to drill. The horizontal completion section of the well in the Mangahewa formation is planned to be up-dip of the Maui 4 discovery well drilled in 1970, which flowed 575 bopd from a vertical exploration well through that zone. Two additional oil accumulations were encountered in the Moki formation but were not tested at the time. If warranted, the well will be equipped for production and flowed to the FPSO, using gas-lift. The M2A well will be drilled thereafter and is expected to take 27 days to complete.

The M2A zone at Maari has now been penetrated by 12 exploration, appraisal, producer and injector wells, is well understood and has been mapped with a significantly higher oil-in-place than was anticipated before commencement of the development drilling program. It is intended that the well will be completed as a producer and put on intermittent production as allowed by available production facilities.

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some notes ;

 

Spikey Beach target is now approx middle+ Aug09 ..... Basker -7 underway , rig schedule says Spikey Beach spud 27/8/09 , but it looks like it could be slightly earlier with progress at Basker - 7

 

NZ + Bass Strait wells simultaneously in Aug09 ; NWS farm out due mid - Aug09 as well ; ramp up of NZ production with Aug09 news flow as indicated by HZN quarterly...... + + + + +

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congratulations Colin...

we are away...

this is just the beginning,

manaia

spikey

oyong

M2A

Artemis unfolding

all beautiful prospects including up and coming Oyong Gas production

equivilant to 1000 BOE per day to us...

Lets roll...

disc... holding and not selling....

:B):

.^sc

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