CUE completes sale of PNG assets for $7 million

Cue Energy Resources Ltd. (CUE) has completed the sale of its interests in Papua New Guinea (PNG) to the National Petroleum Co. of PNG for $7 million.

CUE received $7 million in cash via the sale of 100% of the shares in CUE’s wholly owned subsidiary, Cue PNG Oil Company Pty Ltd., effective Nov. 20, with the sale proceeds substantially exceeding the book value of the assets.

The sale follows a strategic review of the CUE’s PNG assets, and the transaction allows CUE to realize value from its share of the declining reserves and contingent gas resources. It also releases CUE from a potential substantial well commitment of up to $10 million, delivering a material saving over the short to medium term.

The sale aligns with CUE’s strategy of operating in lower-cost areas with near-term development options, and enables CUE to re-allocate capital to other opportunities more closely aligned with its strategy, including the recently increased 100% participating interest in the Mahakam Hilir PSC and farm-in to the highly prospective Mahato PSC, both located in Indonesia.

The asset interests sold by the subsidiary are PDL 3, 5.568892%; SE Gobe Unit, 3.285646%; PRL 9, 14.894%; PRL 14, 10.94%.

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