Cue Energy Increased its Reserves Estimate for PB Oilfield in the Mahato PSC

Source: 3/29/2022, Location: Asia

- 92.8 million barrels of oil in place assessed in the PB field, Mahato PSC
- 20.9 million barrels of gross 2P recoverable oil reserves
- 322% increase in Cue net 2P oil reserves to 1.4 million barrels

Cue Energy has significantly increased its reserves and resources estimate for the PB oilfield in the Mahato PSC, with a 322% increase in net 2P oil reserves to 1.4 million barrels (mmbbl) and an increase in 1P oil reserves to 1.1 mmbbl.

Cue Energy holds a 12.5% participating interest in the Mahato PSC, located onshore Central Sumatra, Indonesia, through its 100% owned subsidiary Cue Mahato Pty Ltd.

Due to the success of the ongoing drilling and the field production performance, Cue has undertaken a review of the PB field resource. The reserves and resources included in this statement are based on available geophysical and geological data and incorporate information from completed wells into an updated view on field performance. The range of uncertainty at this point is driven by the early nature of the production, evolving drilling results and some limitations on well data available to Cue.

The PB field is assessed to contain 92.8 mmbbl of stock tank oil initially in place (STOIIP) at the P50 confidence level, with an upper estimate of 146 mmbbl.

Probability Level
P90: STOIIP (mmbbl) 58.7
P50: STOIIP (mmbbl) 92.8
P10: STOIIP (mmbbl) 146.2

The gross recoverable oil volumes from the field represent the total oil expected to be recovered from the field to the current end of the PSC term in 2042. Cue’s net share is the effective economic interest expected to be available to Cue after FTP, cost recovery, profit split and other sharing mechanisms under the Production Sharing Contract.

Developed reserves volumes include the 8 production wells, PB-01 to PB-08, drilled as part of the original plan of development (POD). Reserves from five additional wells (PB-09 to PB13) approved in the 2022 WP&B are included as undeveloped reserves. An announcement on completion of the PB-09 well was released on 18 March 2022.

A further view of resources available from future potential drilling opportunities is considered as contingent resource.

Commenting on the increased reserves, Cue CEO Matthew Boyall said:

“The Mahato PSC is an exciting growth asset in Cue’s portfolio and this upgrade in reserves demonstrates the value that it holds for Cue. Cue reported $6.5 million revenue from the PB field in H1 FY2022, in a lower oil price environment than now.

The increased reserves reflect the better than expected production performance of the field and information gained through phase one of the development. We will continue to review the reserves as more information from the field is gained.

Nine production wells have now been drilled in the field and four more are planned for the coming months. Our analysis shows that there is continued potential for development after the current drilling program.”

Cue retains the right and will undertake regular reserves reviews in-line with actual drilling and production performance from the PB field as it is obtained over the coming months and years. This will be incorporated into an economic model and any changes to reserves will be updated and communicated in due course.

The Company intends to include any updates in its reserves and resources statement as part of its FY2022 Annual reporting.

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