** cue ready to explode***, page-9

re: chairmans address Cue Energy Resources Limited
A.B.N. 45 066 383 971
25th Floor
500 Collins Street
Melbourne Victoria 3000
Australia
Telephone: (03) 9629 7577
Facsimile: (03) 9629 7318
Email: [email protected]
Website: www.cuenrg.com.au
FACSIMILE TRANSMISSION
TO : Company Announcements Office
10th Floor
20 Bond Street
Sydney NSW 2000
DATE : 21 November 2003 PAGES (including this page): 4
FROM : Andrew Knox
RE : Annual General Meeting of Shareholders - Results & Chairman's Address
Dear Sir
Attached please find Cue Energy Resources Limited's release with respect to the above
mentioned.
Yours faithfully
Andrew M Knox
Chief Financial Officer
1
Cue Energy Resources Limited
A.B.N. 45 066 383 971
RELEASE
ANNUAL GENERAL MEETING OF SHAREHOLDERS –
RESULTS & CHAIRMAN’S ADDRESS
I
n respect of the Annual General Meeting of Shareholders held today, Friday 21
November 2003, the results of the resolutions put to the meeting are as follows:
1. Directors Report
Receive and adopt Directors Report
Passed
2. Re-election of Directors
2.1 Re-election of Mr. E.G. Albers as a
director of the Company
2.2 Re-election of Mr. L Musca as a director
of the Company
Passed
Passed
3. Auditors
To authorise the Board to appoint auditors for the
ensuing year following a tender process and to fix
the auditor's remuneration
Passed
Following is the address delivered by the Chairman, Mr Richard Tweedie at the
meeting:
"Good Morning Ladies and Gentlemen,
Welcome to the 22nd Annual General Meeting of Cue shareholders. I am
Richard Tweedie and I am pleased to be addressing you as chairman for the
third time.
Let me introduce the other members of your board and the company's senior
management, all of whom are unchanged from last year.
- Chairman introduces board members and management.
The past year was again profitable for your company. We achieved an after
tax profit of $0.7 million with an operating profit of $1.1 million. This is,
however, less than last year's profit which included a one off capital profit from
the sale of our interest in the Yolla gas field.
2
Our operating revenue for the year was $7.6 million, primarily oil production
revenue from our interest in the SE Gobe oil field in Papua New Guinea. The
decrease in operating revenue from $8.9 million last year reflects the expected
steady decline in oil production from the field.
Our share of production from the field for the year was 138,618 barrels which
we sold for an average price of US$28.82 per barrel, an increase of more than
US$5 per barrel over last years average realised price. We expect oil prices
to continue at these buoyant levels given the continuing uncertainty in the
Middle East.
Cue continues to be unhedged and therefore fully exposed to current oil
prices.
Your company is debt free and had net cash reserves of $4.2 million at the
end of the financial year and around $3.7 million currently. Our cash reserves
at the end of the previous year stood at US$4.8 million.
On the operations front, considerable progress has been made on the
development of the Oyong oil and gas discovery in the offshore Sampang
PSC in East Java, Indonesia.
A gas contract for the total gas reserves of the field has been signed with PT
Indonesia Power. The gas will be used to power the electricity generation
plant at Grati. Engineering contracts have been released for bidding and
detailed financial discussions are currently being held on securitizing the
payments for the gas. Cue has also received a detailed proposal to fund our
complete 15% share of the development costs of around US$19 million
We expect that both oil and gas production will begin around mid 2005. Bob
Coppin will give you some more details on development progress in his
presentation.
On the exploration side of our business, we participated in two wildcat wells
during the year. Bilip -1 in Papua New Guinea resulted in a small oil and gas
discovery which at this point is sub commercial and in the Sampang PSC in
Indonesia, we participated in the Mangga -1 well which encountered 12 metres
of sub commercial gas.
Additional exploration potential remains in both those areas and we expect
ongoing exploration activity in 2004.
3
In Papua New Guinea, Mitsubishi Gas Chemical Company, Itochu Corporation
of Japan and the operator Oil Search, are investigating the potential for gas
fields such as Kimu, where Cue has 10.7% interest, to be used for methanol
production feedstock. A commercial outcome would provide significant value
upside for Cue.


During the year we continued to try to grow the company through quality new
exploration acreage and the acquisition of producing assets. This included
making a serious bid for ChevronTexaco's PNG interests. We intend to
continue these efforts in the coming year.
We continue to manage cash reserves carefully with a view to minimizing the
need to come to shareholders for further equity. However, as always, as we
endeavour to grow the company, there is the possibility of additional equity
being required.


In closing I thank shareholders for their continuing support of the company and
the board and our management and staff for their efforts during the year.
Thank you.
Bob Coppin will now give you a brief review of operational activity during the
year."
If you have any queries regarding this announcement, please contact Cue Energy on
+61 (0)3 9629 7577.
Andrew M Knox 21st November 2003
Public Officer