OMV Hits Water Off Taranaki (New Zealand)

Cue Energy Resources Ltd has been advised by OMV New Zealand Ltd, the Operator of permit PEP 51313, that at 07:30 hours (local time) on Friday 15th August 2014, the Whio-1 well was at a depth of 1,582m MDRT in 12.25″ hole, and is drilling ahead towards the planned total depth of 2,879m MDRT (2,754m TVDRT).

Whio-1 is being drilled from the semi-submersible drilling rig Kan Tan IV’ at a surface location 110 km south-west of New Plymouth, Taranaki, New Zealand and 4.5 km south-east of the Maari well-head platform.

Cue has been advised by the Operator that the upper reservoir objectives (Whio A, M2A, and Upper Moki) at Whio are water-bearing. Whio-1 is currently being drilled towards the deeper reservoir objectives, of which the Mangahewa Formation is the primary target, and which is oil bearing in the Maari Field. The secondary lower reservoir objectives are the Kaimiro and Farewell formations. Success in the remaining objectives at Whio will open additional exploration potential along the Tasman Ridge to the south of Maari, including the Matariki prospect.

Cue is free-carried by OMV in the drilling and completion of Whio-1 under the terms of a farm-out agreement signed in December 2012. In the event of a commercial discovery in the Whio area, the participating interests of all partners will be aligned with those of the Maari Joint Venture as follows:

– Cue Taranaky Pty Ltd. – Current Interest 14%, Production Interest 5%;

– OMV New Zealand Ltd (operator) – Current Interest 30%, Production Interest 69%;

– Todd Exploration – Current Interest 35%, Production Interest 16%;

– Horizon Oil (New Zealand) Ltd – Current Interest 21%, Production Interest 10%.

Cue will provide weekly progress reports during the drilling of Whio-1.