Carnarvon Basin

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.

The Company has been notified by the National Offshore Petroleum Titles Administrator on April 11, 2016 of the approval of its application for a suspension of the Permit Year 3 work programme commitment for WA-359-P. The Year 3 work programme comprises the drilling of one exploration well which is now due by April 2018. The extension of the permit tenure is helpful in progressing the farm-out process. 

Cue and BHP Billiton agreed to increase their respective interests in the permit following Woodside’s decision to withdraw and resign as Operator. Cue now holds a 40% interest in the permit which we consider to hold significant remaining petroleum potential, particularly Triassic gas.

BHP Billiton Petroleum has been appointed Operator and the Joint Venture has had a renewal application for the permit accepted on a reduced area for a further five year exploration term.

Reprocessed seismic data over the permit has been received by Cue and a full evaluation of the prospectivity of the Block is now underway. Potential prospects include the Caterina prospect and Deep Mungaroo prospects analogous to Ironbark in the nearby WA-359-P and WA-409-P permits.

Cue has submitted a renewal application to NOPTA for the WA-409-P permit. The Ironbark prospect has been mapped as straddling both WA-359-P and WA-409-P. The farmout of the Ironbark prospect is continuing and includes WA-409-P.