SPC'S Stake in Cue Energy Reaches 10%

Singapore Petroleum has increased its shareholding in Cue Energy Resources to approximately 10.02%.

From October 16-30, 2007, SPC acquired 3,303,842 Cue Energy shares for investment purposes in the ordinary course of trading on the Australian Securities Exchange at an average price of A$0.24 per share. This brings SPC's total shareholding in Cue Energy to 62,962,475 ordinary shares. These shares are held through nominee holders.

The aggregate consideration for the 10.02% shareholding is A$12,877,014 (about S$16,497,847). This amounts to approximately 1.13% of SPC's latest audited consolidated net tangible assets. The total market value for the 10.02% shareholding is A$15,110,994, based on Cue Energy's closing share price of A$0.24 as at October 30, 2007.

The Group does not expect the above transaction to have any material impact on the earnings per share and the net tangible asset per share of the SPC group of companies for the current financial year.