Mahato Exploration Well Update

Posted on 10 December 2019

New Zealand Oil & Gas subsidiary, Cue Energy Resources (ASX:CUE), has advised that the PB-1 exploration well has been drilled in the Mahato production sharing contract, onshore central Sumatra, Indonesia.

The well has been drilled and cased to total depth and the results are currently being assessed and approved.

Cue has advised that the most recent cash call from the operator, Texcal Mahato EP Ltd, had deficiencies and therefore has not been settled. Cue has subsequently received a default notice from the operator on the non-payment of the cash call. The validity of this notice is disputed. Cue is currently not receiving information from the operator as required under the joint operating agreement and is evaluating all available options to address this and other breaches by the operator.

Cue has a 12.5% interest in the Mahato PSC. New Zealand Oil & Gas has a 50.04% interest in Cue.

Cue’s announcement is attached.