Cue Energy six-month result down almost 100 percent

By NZPA

Monday 10th February 2003

Australasian oil explorer Cue Energy saw an almost 100 percent dip in net profits for the six months ended December 31.

The company said it would not pay a dividend after its interim profit shrank to $12,000 after tax, compared with $4.54 million for the same period the year before.

Cue, of which Todd Petroleum owns 5.5 percent, has stakes in oil and gas exploration and development in Australia, Indonesia and Papua New Guinea.

Sales revenue fell to $3.78 million from $4.68 million, with operating revenue totalling $3.85 million ($12.57 million).

Shareholders' equity remained fairly steady at $35.68 million ($36.30 million).

The latest find, at its 11 percent-owned Bilip-1 in the Papuan Basin operated by Santos, has proved disappointing with the well suspended after initially promising results in November.

A cement plug was set in the deeper section, but a sandstone reservoir yielded an average flow rate of 2000 barrels of oil per day.

"The well has been cased (lined with steel) and suspended as a future oil producer. The operator is currently considering production options for the discovery," Cue said.

Pre-drilling estimates had put the potential of Bilip at 30 million to 100 million barrels of oil.

The SE Gobe oil field in Papua New Guinea resulted in revenue for Cue of $US1.86 million, equating to 70,727 barrels for its 3.3 percent interest in the operation.

However, the flow is much reduced, and on a daily basis the current 386 barrels of oil per day, expected to rise to 424 barrels, is lower than the 520 barrels a year earlier.

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