Sharechat Logo

Cue Energy turns to profit as production income ramps up

Tuesday 24th August 2010

Text too small?

Oil and gas company Cue Energy Resources turned to profit as production income ramped up 80% in the year ended June 30.

The company, which is 23.6% owned by Todd Petroleum Mining and listed on both the ASX and NZX, reported a A$27.5 million (NZ$34.4 million) annual net profit compared with a A$22.6 million net loss a year earlier.

The previous year's loss included A$27 million in impairment writedowns compared with just A$236,000 in writedowns this year.

Production income jumped to A$54.7 million from A$30.4 million the previous year. Cue says oil sales increased 78% in the year with 590,000 barrels of oil sold in the first full year of the Maari field's production.

The Maari field, 80 kilometres off Taranaki, began producing in February last year.

Cue says the Oyong gas field, off Java in Indonesia, has produced 2.12 billion cubic feet since October 1 last year.

The company cut debt to US$12 million (NZ$17 million). It didn't provide a US dollar comparison for the previous year but the balance sheet shows bank debt fell to A$14.1 million at June 30 from $21.2 million a year earlier.

Cash at year end was A$29.4 million compared with A$4.3 million a year earlier due to cash flow from operations more than doubling and a A$9.7 million equity raising.

As previously announced, Cue sold its interest in the Kimu gas field in Papua New Guinea for US$5.14 million and farmed out a 65% interest in its WA389P permit in the Carnarvon Basin off Western Australia to Woodside Petroleum for US$5 million. Brazil's Petrobras has also bought 50% of the WA361P permit in the Carnarvon basin in which Cue has a 15% interest.

Cue says the Artemis well will be drilled in the December quarter. A decision on the Wortel development in Indonesia will be made before year end, it says.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Cue sticks with 3-5 wells a year in hunt for 'transformational growth'
Cue outlines four new wells for Maari oil and gas field next year
Cue Energy nearly triples 1H profit on forex gains
Todd Energy seeks four new directors for Cue Energy
Cue sells interest in PNG's Kimu gasfield for US$5.1mill
North-West Shelf shapes Cue Energy's prospects
Short sellers emerge as Cue Energy returns to NZX