• Mereenie Joint Venture approves the drilling of two new development wells
• Ventia 101 rig secured, with drilling anticipated to commence in late 2024 or early 2025
• Gas production from the wells to be sold under the recently announced Northern Territory
Government Gas contract
Cue Energy Resource and its Mereenie Joint Venture partners have formally approved the
drilling of two new development wells, West Mereenie (WM-29) and West Mereenie 30 (WM-30), in the
Mereenie oil and gas field in the Northern Territory.
The Ventia Australia Pty Ltd Rig 101 has been contracted for the operation, with drilling expected to
commence in late 2024 or early 2025. Each well is projected to take approximately 30 days to reach its
Pacoota 3 reservoir target at depth of approximately 1500 metres.
With gas processing and surface infrastructure already established at the field, produced gas will have
immediate access to the market. The gas from the wells is to be sold under the recently announced
Northern Territory Government contract, which provides provisions for additional volumes of up to 6TJ/d
(100%).
Cue’s 7.5% share of the program costs is estimated at $2.4 million, to be funded from existing cash
reserves.
Cue CEO Matthew Boyall commented, “We look forward to successfully drilling WM-29 and WM-30 and,
with the expectation of returning Mereenie field capacity to over 30TJ/d and supporting energy
requirements in the Northern Territory under existing contract arrangements.
With these two Mereenie wells and current drilling in the Mahato PSC, Cue expects to be participating in
ten development wells this financial year, underpinning our strong organic growth and reinforcing our
strong cashflow position.”
Participants in Permits OL4 and OL5 are Central Petroleum (ASX: CTP; Operator 25%), Cue (7.5%)
Echelon Resources (ASX: ECH; 42.5%) and Horizon Oil (ASX: HZN; 25%).