Cue has evaluated the regional prospectivity in all of its Western Australia offshore permits and has identified an exciting new play type associated with the prolific gas-bearing Mungaroo Formation. The “Ironbark” prospect, a Mungaroo Formation prospect with multiple objectives, has been identified as the primary candidate for drilling and Cue estimates that it holds a success case best technical estimate of 15 trillion cubic feet (TcF) of gas reserves. A farm-out process to find suitable joint venture partner(s) to participate in the drilling of the well is ongoing.
Cue has granted BP Developments Australia Pty Ltd an option over 42.5% equity in WA-359-P, exercisable by the the end of October 2017. If exercised, 50% of the Ironbark-1 well would be funded. Cue is continuing discussions with other potential farm-in partners.