Cue Energy back in black

Dual-listed Cue Energy has reported an $8 million net profit to December 31, compared to a $16 million loss in the same period last year.The company, which re-listed on the NZX in October last year, said an increase in production receipts resulted in the profit, along with almost no impairment writedowns.Oil production from the Maari field in the Taranaki basin and the start of gas production at Oyong in the Sampang PSC, Indonesia, pushed revenue up 72% to $30 million.

Dual-listed Cue Energy has reported an $8 million net profit to December 31, compared to a $16 million loss in the same period last year.

The company, which re-listed on the NZX in October last year, said an increase in production receipts resulted in the profit, along with almost no impairment writedowns.

Oil production from the Maari field in the Taranaki basin and the start of gas production at Oyong in the Sampang PSC, Indonesia, pushed revenue up 72% to $30 million.

One of several companies in the Maari partners consortium (with a 5% stake), Cue’s net share of oil production for the half year was 200,815 barrels from the field. The shallower M2A development well was also drilled along with the Manaia-1 – to a depth of 7,945 metres.

The company said the two wells increased Cue’s net proved and probable oil reserves by 475,000 barrels.

Cue obtained 20% interests in two Taranaki Basin permits during the half year – increasing its exploration presence in the country.

Cue recorded a $A20 million net loss in 2009, after writing down one-off exploration expenditure in Indonesia and Papua New Guinea.

To December 31 in Papua New Guinea, the company’s share of oil production from the SE Gobe field was 22,440 barrels and its daily share was about 150 barrels. Cue began negotiations to sell SE Gobe gas to the PNG LNG project and acquired a 60km 2D seismic survey over the Barikewa gas field.

Cue’s share of oil production in the Oyong field in Indonesia was 109,179 and gas production began in October.

Cue is talking to a number of interested companies about a share in its 100% interest of the WA-389-P permit. Cue said the interpretation of new 3D data strongly enhanced the potential of the Caterina gas prospect.

The company raised $AU9.7 million in a one-for-five pro-rata shareholder entitlement offer in July 2009.

Cue said an interim dividend was not possible.

Shares (NZX:CUE) last traded at .27 cents.