Cue Energy nearly triples 1H profit on forex gains

Wednesday 29th February 2012

Cue Energy Resources, the oil and gas company, nearly tripled first-half net profit, largely reflecting foreign exchange gains.

The Australia-based Cue, which is 23.5 percent-owned by the Todd family and listed on both the NZX and ASX, said net profit rose to A$3.9 million for the six months ended Dec. 31, from A$1.3 million in the same six months of 2010. The result included a A$2.7 million foreign exchange gain compared with a A$3.5 million loss a year earlier.

Cue, which has a 5 percent interest in the Maari and Manaia oil fields in the Taranaki basin, said a 1.7 percent drop in revenue to A$23 million was mainly due to a 27 percent fall in oil sales, mitigated by higher oil prices and the foreign exchange gain.

Cue said its average oil price was in excess of US$100 a barrel.

Its cash balance at Dec. 31 was 24.8 percent higher than a year earlier at A$50.7 million while project debt fell by 68 percent to US$2.6 million.

Its share of the Maari and Manaia fields was 126,842 barrels, which generated A$13.9 million revenue.

Cue said the fields' operator, OMV New Zealand, is advancing plans for additional development of the two fields. It is also planning two firm and one contingent wells to be drilled during the 2012/13 season.

Its share of the SE Gobe field in Papua New Guinea was 13,805 barrels of oil which generated A$1.6 million revenue. It owns 5.6 percent of one part of the field and 3.3 percent of another part.

The field is expected to start exporting gas from June 2014 and is expected to produce about 35 million standard cubic feet per day for 10 years from then.

Cue's 15 percent interest in the Oyong field in Indonesia yielded 12,439 barrels of oil, which generated A$1.4 million in revenue and its share of gas sales was 1,183,719 thousand cubic feet, which generated A$3.1 million revenue.

It said development of the Wortel field, also 15 percent-owned, including connecting it to the Oyong field, was completed in late January. The combined field is expected to produce around 90 million standard cubic feet of gas per day for the rest of the financial year, it said.

Cue also owns 30 percent and 35 percent interests in exploration areas in Western Australia's Carnarvon basin.

Cue won't pay a first-half dividend.

Cue shares closed yesterday on the ASX down 0.5 cents at 31 Australian cents. They have risen from 21 cents in December.

BusinessDesk.co.nz

Comments from our readers

No comments yet