Cue Energy Faces Key Decisions on Paus Biru Development and Contract Finalisations
Cue Energy Resources reports steady production and a strong cash position, advancing long-term gas contracts in Australia with new drilling planned. Key developments in Indonesia and New Zealand also shape the company’s near-term outlook.
- Total production steady at 1,680 barrels of oil equivalent per day
- Strong cash balance of $11.2 million at quarter end
- Letter of Intent signed for long-term gas sales from Mereenie and Palm Valley fields
- Four new development wells planned in Australia for mid-2026
- Final Investment Decision on Paus Biru gas development expected this quarter
Steady Production Amid Strategic Moves
Cue Energy Resources has maintained a steady production rate of approximately 1,680 barrels of oil equivalent per day for the quarter ending 31 December 2025, underscoring operational stability across its portfolio. The company closed the quarter with a robust cash balance of $11.2 million, despite cash receipts dipping to $9.9 million due to timing and lifting schedule adjustments at its Indonesian Mahato PSC asset.
Securing Long-Term Gas Supply in Australia
A significant highlight for Cue this quarter is the signing of a Letter of Intent with the Northern Territory Power and Water Corporation, setting the stage for long-term gas sales from the Mereenie and Palm Valley fields through to 2034. Binding gas sales agreements are anticipated to be finalised imminently, providing the company with contracted volumes and pricing certainty from its onshore Australian assets.
Supporting these commitments, Cue plans to drill four new development wells, two each at Mereenie and Palm Valley, starting mid-2026. Preparations are well advanced, with long-lead equipment ordered and rig contracts underway, signalling a clear pathway to production growth.
Progress in Indonesia and New Zealand
In Indonesia, Cue continues to advance development plans at the Mahato PSC, targeting production expansion from the Telisa reservoir with Phase 3 drilling expected this year. Meanwhile, the Paus Biru gas development project is approaching a critical juncture, with a Final Investment Decision anticipated this quarter. Negotiations over economic incentives and a Production Sharing Contract extension are ongoing, pivotal for the project’s progression.
On the New Zealand front, Cue’s 5% interest in the Maari field remains steady, with production holding above 5,400 barrels per day. The recent extension of the permit by ten years offers a runway for potential new development opportunities, while the company monitors evolving regulatory requirements around decommissioning liabilities.
Corporate and Governance Updates
Following its 2025 Annual General Meeting, Cue appointed Gregory Bishop as a Non-Executive Director, bolstering its board expertise. The company continues to navigate operational challenges, including a temporary shutdown at Mahato PSC due to a regional pipeline incident unrelated to its facilities, and infrastructure constraints at Mereenie that were addressed late in the quarter.
Overall, Cue Energy’s latest quarterly report reflects a company balancing steady production with strategic investments and contract negotiations that could underpin growth and cash flow stability in the years ahead.
Bottom Line?
Cue’s upcoming drilling and contract finalisations will be key to sustaining its growth momentum in a competitive energy landscape.
Questions in the middle?
- Will the binding gas sales agreements in Australia be finalised on schedule by end of February?
- How will the outcome of Paus Biru’s Final Investment Decision impact Cue’s Indonesian portfolio?
- What are the potential effects of New Zealand’s new decommissioning regulations on Cue’s operations?
