On 24 November 2014, Cue announced the execution of a farm-in agreement with Bukit Energy to acquire a 12.5% interest in the Mahato PSC, onshore Central Sumatra, Indonesia. This transaction received the Indonesian Governement approval required on Q1 2015.
The Mahato PSC covers a highly prospective area close to several large producing oil fields and multiple appraisal and exploration opportunities have been mapped. However there has not been a legally binding agreement governing the Mahato PSC Joint Venture arrangements since the licence was granted in 2012. Cue will therefore limit its exploration expenditure on this licence until the Company’s legal rights are protected.