Cue Energy Sells PNG Gas Assets

Cue Energy Resources Limited (CUE) last week announced the sale of its interests in Papua New Guinea to the National Petroleum Company of PNG for $7 million.

The company sold 100 percent of the shares in its wholly-owned subsidiary, Cue PNG Oil Company Pty Ltd, effective 20 November 2014.

“The sale follows a strategic review of the company’s PNG assets and immediately allows CUE to realise value from its share of the declining reserves and contingent gas resources and releases CUE from a potential substantial well commitment of up to $10m, delivering a material saving over the short to medium term,” the company said.

The sale aligns with the company’s strategy of operating in lower cost areas with near term development options and enables CUE to re-allocate capital to other opportunities more closely aligned with its strategy, including the recently increased 100 percent participating interest in the Mahakam Hilir PSC and farm-in to the highly prospective Mahato PSC, both located in Indonesia, the company added.

The asset interests sold by the subsidiary are:
PDL 3- 5.6%
SE Gobe Unit- 3.3%
PRL 9- 14.9%
PRL 14- 11%