Cue Reports on Drilling Operations at Manaia-1 Appraisal

Cue advised that since the last report the Manaia appraisal well has drilled to a depth of 4633m in 12-1/4" hole. The bottom hole assembly failed at this depth and has been pulled out of the hole and replaced. As of August 28, 2009, the drillpipe is being run back into the hole in
preparation to continue drilling ahead in 12-1/4" hole.

The Manaia field is located approximately 10km SW of the Maari Field in Exploration Permit PEP 38413 in the offshore Taranaki Basin New Zealand. The field was discovered in 1970 by the Maui-4 well. The well intersected an oil accumulation in the Mangahewa Formation reservoir
which tested at 575 BOPD.

The Manaia-1 appriaisal well is being drilled as an extended reach well from the Maari WHP using the Ensco 107 jackup rig. It is scheduled to take about 45 days to drill and is expected to confirm the presence of the oil column established by the Maui-4 exploration well. If hydrocarbons are established the well will be completed and tied into the Maari facilities for subsequent testing and production.

Participants in the Manaia-1 appraisal well:

  • Cue Taranaki Pty Ltd 5%
  • OMV NZ Ltd (Operator) 69%
  • Todd Maari Limited 16%
  • Horizon Oil International Limited 10%