Cue Energy Resources Ltd. reported Tuesday that it 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 offshore Western Australia.
The Year 3 work commitment comprises the drilling of one exploration well which is now due by October 2016.
Cue has 100 percent 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 5,792 square miles (15,000 square kilometers) 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 on 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 54-154 square miles (140-400 square kilometers) 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.
Cue CEO David Biggs said, "The suspension of the Year 3 well commitment provides Cue time to finalize the planning for a well to target the Ironbark prospect, which we believe contains a world class gas resource that has the potential to add significant value to Cue. We are excited about the prospects for WA-359-P and WA-409-P and are pleased to have commenced a process to find a joint venture partner."
As part of Cue's regular strategy and portfolio review during 4Q 2015, which will involve both of its major shareholders, a review of Cue's other Carnarvon Basin assets (WA-360-P, WA-361-P and WA-389-P) will be undertaken alongside consideration of other existing assets and opportunities under consideration.
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