Cue farms into offshore New Zealand permit

Cue Energy has farmed into offshore New Zealand exploration permit PEP 51313 under an agreement with Todd Exploration.

Offshore staff

MELBOURNE, Australia -- Cue Energy has farmed into offshore New Zealand exploration permit PEP 51313 under an agreement with Todd Exploration.

Cue has obtained a 20% interest in the permit, which lies immediately adjacent to the Maari and Manaia oil fields in the offshore Taranaki basin. The permits cover 2,628 sq km (1,015 sq mi).

The five-year permit term began on July 30. In the first two years, the permit work program consists of seismic reprocessing and 2D and 3D seismic acquisition over the greater Matariki area.

The joint venture has the option to drill exploration wells in the third and fifth years of the permit. Cue will earn its 20% interest by reimbursing Todd Exploration for Cue’s equity share of prior permit costs and funding part of Todd Exploration’s share of 3D seismic costs.

Participants in PEP 51313 are:
Cue Taranaki - 20%
Todd Exploration - 50% (Operator)
Horizon Oil - 30%

10/21/2009

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