Australia MEREENIE, PALM VALLEY AND DINGO Cue completed the acquisition of interests in the Mereenie, Palm Valley and Dingo fields, in the Amadeus Basin, onshore Northern Territory, on 1 October 2021 and incorporated a full year of reporting in FY 2023. The assets generated $11.9 million in revenue, a 45% increase over FY 2022 due to a full year of reporting and increased gas sales at Palm Valley following the start of gas production from the Palm Valley 12 (PV-12) well. The PV-12 well was drilled with a sidetrack, ST2, in the Pacoota P1 interval, the producing interval in the Palm Valley field, reaching a total measured depth (MD) of 3039m on 8 October 2022. Prior to ST2, another sidetrack (ST1) was drilled into the Pacoota P2 and P3 formations and recovered formation water from the wellbore. As a result of this water and the absence of significant gas shows while drilling, the ST1 lateral was plugged and abandoned. Cue announced on October 18 2022 that the well was being completed as a gas producer after flowing gas at approximately 11.8 million standard cubic feet per day (mmcfd). PV-12 was successfully tied in during December 2022. Towards the end of the year, six well recompletions were undertaken in the Mereenie field, resulting in an additional 1.5 TJ/d initial gas rates. Interruptions to sales were experienced due the temporary closures of Northern Gas Pipeline (NGP) from September to December 2022. Cue gas sales were restricted to the Northern Territory during this time, leading to a decrease in field production rates. During the year, the Australian Government introduced price controls on gas producers, limiting new contracts sales to $12/GJ from December 2022. These were subsequently modified by the implementation of the mandatory Gas Code of Conduct, which provides Cue, as a small producer, an exemption from the price cap. Further drilling in the Mereenie field is being planned to increase production from the currently producing Pacoota reservoirs and assess the potential for increased Stairway formation gas production. Operations and Financial Review 100km N Alice Springs OL3 OL4 OL5 L7 Cue Permit Oil Field LEGEND G Oil Pipeline as Field Gas Pipeline Palm Valley Mereenie Dingo CUE INTERESTS Mereenie [OL4 & OL5] 7.5% Palm Valley [OL3] 15% Dingo [L7] 15% Operator Central Petroleum Limited 9 Cue Energy Resources Limited Annual Report 2023
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