Cue Energy Reports 17% Rise in Cash Receipts and 1,700 boe/d Production in Q3 FY25
Cue Energy Resources delivered a robust quarter with production rising to 1,700 boe/d and a $7 million dividend payout, while advancing development projects in Australia and Indonesia.
- Production increased to 1,700 barrels of oil equivalent per day
- Cash receipts up 17% to $15.3 million for the quarter
- Paid $7 million dividend, totaling $28 million over 18 months
- Successful drilling of Mereenie WM29 and WM30 wells added 9 TJ/d gas production
- Progress towards Final Investment Decision on Paus Biru gas project and Sampang PSC extension
Strong Operational Performance
Cue Energy Resources has reported a solid third quarter for fiscal year 2025, achieving an overall production rate of approximately 1,700 barrels of oil equivalent per day (boe/d). This marks a steady operational performance supported by successful development activities and increased cash receipts, which rose 17% quarter-on-quarter to $15.3 million.
The company’s financial discipline is evident in its strong balance sheet, maintaining $11.1 million in cash with no debt, even after distributing a $7 million dividend to shareholders in March. This dividend payment brings total shareholder returns to $28 million over the past 18 months, underscoring Cue’s commitment to delivering sustainable value.
Development Wells Drive Production Growth
Key to the production uplift was the successful drilling and completion of the Mereenie WM29 and WM30 development wells in Australia’s Mereenie field. These wells added approximately 9 terajoules per day (TJ/d) of gas production, exceeding initial expectations and providing a strong foundation for further development plans, including upcoming wells in the Palm Valley field.
In Indonesia, Cue drilled three development wells in the Mahato Production Sharing Contract (PSC) area, continuing the approved field development optimisation plan. Production from Mahato increased, with oil output averaging over 6,200 barrels per day, contributing to a $2 million rise in cash receipts. The Maari field in New Zealand also saw a 9% increase in oil production, maintaining steady cash flow.
Progress on Strategic Gas Projects
Significant progress is underway towards a Final Investment Decision (FID) for the Paus Biru gas development and the extension of the Sampang PSC in Indonesia. Discussions with the Indonesian government and joint venture partners are focused on securing economic incentives and contract amendments essential for project advancement.
Notably, Singapore Petroleum Sampang Ltd has decided not to continue participation beyond the current PSC term expiring in December 2027. This development opens the possibility for Cue to increase its participating interest by up to 10%, potentially enhancing its stake and influence in the Sampang PSC moving forward.
Operational Challenges and Outlook
The quarter was not without operational challenges, including temporary production impacts from scheduled plant maintenance and well optimisation programs at Mereenie. Additionally, some wells in the Maari field experienced downhole faults requiring planned workovers. Despite these, Cue’s overall production and cash flow remained resilient.
Looking ahead, Cue plans to drill two development wells in the Palm Valley field within 12 months of receiving final approvals and rig availability. The company continues to prioritise disciplined investment and maintaining a strong balance sheet while pursuing growth opportunities across its portfolio.
Bottom Line?
Cue Energy’s steady production growth and strategic project progress position it well for sustained shareholder returns amid evolving regional dynamics.
Questions in the middle?
- Will Cue secure the necessary approvals and incentives to finalize the Paus Biru FID this year?
- How will the potential 10% increase in Sampang PSC interest impact Cue’s future production and revenue?
- What are the timelines and capital requirements for the planned Palm Valley development wells?
