OMV: Whio-1 well at 2,670M (New Zealand)

Cue Energy Resources Ltd has been advised by OMV New Zealand Ltd (OMV), the Operator of permit PEP 51313, that at 08:19 hours (local time) on Friday 22nd August 2014, the Whio-1 well was at a depth of 2,670m 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.

Whio-1 is currently being drilled through 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.

Preliminary indications suggest the well has intersected reservoir quality sandstones in the targeted formations, which will be assessed in more detail when wireline logs are acquired at Total Depth.

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.

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