Cue 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.
In June 2019, Cue completed the farm out of equity in WA-359-P to BP Developments Australia Pty Ltd (BP) 42.5%, Beach Energy 21% and New Zealand Oil & Gas 15%. At the same time, BP was appointed operator of the Permit.
The Ironbark-1 exploration well is scheduled to be drilled in 2020. Cue is fully funded for its share of the well costs through carry payments from JV partners and US$8.3m in escrowed cash