cue going down to 5 cents, page-10

rigzone notice on spudding of wortel SPC and Partners Spud Wortel-1
Keppel Corp. Wednesday, August 16, 2006


Singapore Petroleum Company Limited ("SPC"), together with its partners in the Sampang Production Sharing Contract ("Sampang PSC"), began drilling the Wortel-1 exploration well ("Wortel-1") in Indonesia on Wednesday.
Wortel-1 is located approximately seven kilometers west of the Oyong field and about 75 kilometers southeast of the city of Surabaya.

Wortel-1 will test a fault dependent structural closure. The reservoir target is analogous to the hydrocarbon-bearing zone in the Oyong field. Wortel-1 is anticipated to be drilled to a measured depth of 1,500 meters subsea. The drilling of the well is expected to take approximately 20 days.

FINANCIAL IMPACT
The drilling will not have any material impact on the earnings per share and the net tangible asset per share of the SPC group of companies for the current financial year.

BACKGROUND

SPC is a regional oil and gas company with interest in oil and gas exploration and production, refining, terminalling and distribution, marketing and trading of crude and refined petroleum products. It is an associated company of Keppel Oil & Gas Services Pte Ltd, a wholly-owned subsidiary of Keppel Corporation Limited.

SPC holds its interest in the Sampang PSC through its wholly owned subsidiary, Singapore Petroleum Sampang Ltd.

Participants in the Sampang PSC upon completion of the participation by PT Petrogas Oyong Jatim ("Petrogas") in the Sampang PSC will be as follows:


Singapore Petroleum Sampang Ltd.—36.0%
Santos (Sampang) Pty Ltd.—40.5%
Cue Sampany Pty Ltd—13.5%
PT Petrogas Oyong Jatim—10.0%
Santos (Sampang) Pty Ltd is a wholly owned subsidiary of Santos Limited, an Australian based energy company, operating internationally, with interests and operations in every major Australian petroleum province and in the United States, Indonesia, Papua New Guinea and Egypt.

Cue Sampang Pty Ltd is a wholly owned subsidiary of Cue Energy, which is an Australian publicly listed oil and gas exploration and production company, based in Melbourne. Cue Energy has operations in Papua New Guinea, Indonesia, New Zealand and Australia.

Petrogas is a wholly owned subsidiary of PT Petrogas Wira Jatim ("PWJ"), a limited liability company in the form of Regional Government Business Enterprise established under the laws of Indonesia. PWJ is set-up and wholly owned by the Provincial Government of East Java, Republic of Indonesia, to manage its 10% Indonesian Participation interests within the East Java provincial boundaries such as the Sampang and Madura Offshore PSCs.

wrxsti