Cue Energy Reports 21% Rise in Cash Receipts and $3.5M Dividend
Cue Energy Resources reported steady production with notable gains at Mahato and Maari fields, alongside a new gas supply deal and a $3.5 million dividend payment.
- Total production steady at 1,650 barrels of oil equivalent per day
- Two new oil wells at Mahato added 2,000 barrels per day
- Maari field hits highest monthly average production in five years
- New gas supply agreement signed with McArthur River Mining for 2026–2027
- Dividend payment of $3.5 million, totaling $31.5 million returned over two years
Operational Stability and Growth
Cue Energy Resources has maintained a steady production rate of approximately 1,650 barrels of oil equivalent per day during the September quarter, consistent with the previous period. This stability is underpinned by operational advances, notably the commissioning of two new oil wells at the Mahato field in Indonesia, which contributed an additional 2,000 barrels per day in initial output. Meanwhile, the Maari field in New Zealand recorded its highest monthly average production in five years, exceeding 5,600 barrels per day in August, reflecting successful well repairs and ongoing optimization efforts.
Financial Performance and Shareholder Returns
The company’s cash receipts rose 21% quarter-on-quarter to $13.5 million, driven largely by proceeds from a Maari lifting. Despite paying out a $3.5 million dividend during the quarter, Cue ended with a robust cash balance of $9.1 million. Over the past two years, Cue has returned a total of $31.5 million to shareholders, highlighting its commitment to disciplined capital management and rewarding investors.
Strategic Contract and Development Progress
In Australia, Cue secured a new gas supply agreement with McArthur River Mining, covering 2026 and 2027. This deal underscores the strategic importance of Cue’s domestic gas assets amid a tightening market. On the development front, progress continues on the Paus Biru project and the proposed extension of the Sampang Production Sharing Contract (PSC) in Indonesia. If approved, Cue’s interest in the Sampang PSC could increase from 15% to 25%, potentially enhancing future production and reserves.
Governance and Outlook
Following the recent Annual General Meeting, Greg Bishop was appointed as a Non-Executive Director, adding experience to the board as Cue advances its diversified portfolio. CEO Matthew Boyall emphasized the company’s focus on value-accretive growth and disciplined capital management, signaling confidence in both current operations and future development opportunities.
While the operational results and new contracts provide positive momentum, the company’s future growth hinges on regulatory approvals and joint venture partner decisions, particularly regarding the Paus Biru development and Sampang PSC extension. Investors will be watching closely as these developments unfold.
Bottom Line?
Cue’s steady production and strategic contracts set the stage for potential growth, but key approvals remain pivotal.
Questions in the middle?
- Will the Sampang PSC extension and associated incentives secure final investment decision for Paus Biru?
- How will the departure of a joint venture partner affect the Paus Biru development timeline and costs?
- What impact will the new gas supply agreement have on Cue’s revenue and domestic market positioning?
