OMV Commences First Oil from MR7A Development Well in NZ's Maari Field

Australia's Cue Energy Resources Ltd. reported Friday that production from the Maari MR7A development well in the Maari field offshore Taranaki in New Zealand has been brought on stream, with a provisional initial production rate between 1,500-2,000 barrels of oil per day (bopd). The optimal production rate will be determined after several weeks of production history, taking into account reservoir management considerations. The Maari field aggregate daily production is now approximately 15,000 bopd.

MR7A production commenced May 18 from the Moki Formation reservoir unit in the Maari Field. The well was drilled horizontally from the Maari Well Head Platform to a total depth of 13,845 feet (4,220 meters), of which approximately 3.018 feet (920 meters) was completed in very high net-to-gross, good quality reservoir section as indicated by well log data. Based on currently available information the well is anticipated to meet or exceed pre-drill expectations and materially contribute to field production.

The Maari Growth Project offshore Taranaki in New Zealand is being conducted to increase reserves, production, and recovery from the Maari field. Significant undeveloped reserves remain at Maari and Manaia and the additional development will enable extraction of these reserves. The jackup ENSCO 107 (400' ILC) is now drilling the MR10 well, planned initially as an additional infill producer but later to be converted into a flank water injector, to support continued production from the Moki Formation.

Participants in the PMP 38160 Joint Venture are:

• Cue Taranaki Pty Ltd - 5 percent
• Horizon Oil International Ltd (a subsidiary of Horizon Oil Ltd) - 10 percent
• Todd Maari Ltd - 16 percent
• OMV New Zealand Ltd (Operator) - 69 percent