Cue Energy Resources grants WA-359-P Extension of BP Equity Option
Friday 26 May 2017
Extension of BP option to acquire 42.5% equity in WA-359-P until 25th October 2017
Cue remains actively engaged with International companies for farm out of further equity in the permit to form a Joint Venture with BP
Exercise of the BP option would provide funding for 50% of the Ironbark well cost
Cue Energy Resources Ltd advises that it has agreed to extend the 42.5% equity option over exploration permit WA-359-P granted to BP Developments Australia Pty Ltd (BP), as announced on the 13th October 2016, until the 25th October 2017.
Cue is seeking to secure a partner or partners to join themselves and BP in WA-359-P to drill an exploration well in 2018 to test the Ironbark prospect.
A number of International companies are currently engaged in the WA-359-P data room process and the extension of time will enable the results of 3D seismic reprocessing currently underway to be incorporated into their analyses.
If BP exercise the option over WA-359-P, 50% of the Ironbark well cost will be funded.
Ironbark Prospect
The Ironbark prospect is a giant Mungaroo Formation prospect that is mapped with an area of up to 400km2 with a best technical estimate of 15 Trillion cubic feet (Tcf) of prospective recoverable gas resource1 based on an internal technical assessment performed by Cue.
Wood Mackenzie estimates that the North West Shelf LNG plant and infrastructure will have spare capacity from 2021.The Ironbark prospect is less than 50km from the North Rankin platform (North West Shelf LNG) and in close proximity to Pluto and Wheatstone LNG infrastructure, providing cost effective commercialisation options.