Cue Energy 2P Reserves Drop as Impairment Threat Looms

Cue's 2C Contingent Resources decreased from 5.6MMboe to 3.9MMboe after 2.4MMboe associated with Paus Biru and Jeruk was removed in line with the planned withdrawal from the Sampang PSC at licence expiry.

The Mereenie Footwall resource adds 0.7MMboe of unrisked 2U Prospective resources, equivalent to 4.0 petajoules of gas, within a stacked reservoir sequence southwest of the main field.

Cue assigns the opportunity a 31% geological chance of success and assesses the chance of development at about 100% if geological success is achieved, reflecting the potential to appraise, develop, and tie in the resource using existing Mereenie infrastructure.

Prospective resources remain subject to both discovery and development risk, with further exploration, appraisal, and evaluation required to determine whether a significant quantity of hydrocarbons exists.

"While the updated assessment results in lower reported reserves and non-cash accounting charges at year end FY26, it also highlights additional drilling opportunities at Mahato and new prospective gas resources at Mereenie," chief executive officer Matthew Boyall said.

Cue has separately written off approximately $4m of capitalised costs associated with Paus Biru following its previously announced decision to withdraw from the project.

The 2026 reserve assessment followed Cue's change in ownership and board composition and reflects updated technical assessments rather than any material change in the fields themselves.

Australia holds the largest regional share of Cue's 2P reserves at 3.1MMboe, compared with 1.1MMboe across its Indonesian interests and 0.2MMboe from Maari and Manaia in New Zealand.

Cue expects to work with its joint venture partners to further evaluate the Mereenie Footwall opportunity while continuing to assess infill drilling opportunities across the producing portfolio.

"Cue remains focused on disciplined investment and maximising the value from its portfolio of high-quality oil and gas assets," Mr Boyall added.