New Zealand PMP 38160 (Maari) Oil production from the Maari field has remained strong, with gross production from the Maari/Manai fields reaching approximately 5,300 bopd at the end of the year. Cue received $9.5 million revenue from the Maari field, 4% higher than the previous year. Uptime for the field was high, and the positive effects of water injection and production optimisation are being seen with stable, and in some wells increasing, production rates. During the year, well repairs were undertaken on a number of wells, impacting the overall field production levels. Electric submersible pumps were replaced in MN1 and MR9, with both wells back online producing at or above pre-repair levels. The MR6A production well was offline for the entire year. The project participants have advance plans for a workover of the well with the aim of reinstating oil production. The permanent conversion of the MR2 well to a water injection well, increasing overall injection rates to provide further pressure support to the production wells is in preparation. Both projects are expected to be completed during H1 FY 2024. The Maari facilities completed life extension works and inspections with formal sign off expected for the Raroa FPSO to be certified for a further 5 years until 2028. The JV is now assessing and prioritising value adding projects, including production enhancement and cost reduction opportunities with the aim of extending the field life beyond the existing permit expiration date of 2027. An updated decommissioning plan and cost estimate for the Maari infrastructure was completed by the end of the year and submitted to the New Zealand regulator under the Crown Minerals (Decommissioning and other Matters) Amendment Act. The cost estimate is expected to be used by the government to determine the level of financial security required of the Maari JV for decommissioning. Although the regulations have not been established, fulfilling obligations may require Cue to establish a reserve from project cash flow. Operations and Financial Review Maari PMP 38160 Manaia Tui Maui Taranaki Peninsula 10km New Zealand Cue Permit Oil Field LEGEND Gas Field CUE INTERESTS Cue 5% Operator Operator OMV 12 Cue Energy Resources Limited Annual Report 2023
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