Cue Energy Resources Ltd
(ASX:CUE) has announced that the Sampang PSC joint venture has approved the development of the Wortel gas project, offshore Indonesia. Development costs are estimated to be $US100 million, with Cue’s share totalling $US15 million.
Cue says the recoverable gas volumes for Wortel represent an approximate 140 per cent increase in its gas reserves.
Cue has a 15 per cent stake in the Sampang PSC joint venture, with Santos Ltd (ASX:STO) holding a 45 per cent interest and Singapore Petroleum Sampang Ltd holding the remaining 40 per cent interest.
First gas production is expected to be around the end of 2011.
Cue Energy Resources moved from a loss to a profit in fiscal 2010, generating $27.5 million in the year to 30 June 2010.
