oh dear

There goes my BMW for now. Just as well I lightened up.

The Oyong development is going to require $26m from CUE and by the look of it, shareholders are going to be asked to tip in $12m. plus.

If shares drop to 5 cents, this will mean the issue of a further 300m shares. (To account for costs and over runs)

My current estimate values Oyong at $15m or about 5 cents per share. The balance of Cue's other assets and cash are worth about another 2 cents per share. Current market prices are about right but may buckle under a big cap. raising.

Any comments guys.

Here's a bit from todays Quaterly.

"Cue Energy Resources’ share of Oyong development costs is expected to be
approximately AUD26 million, with the bulk of the funds expected to be required in
calendar year 2005. The funding strategy is a combination of project finance and
equity. It is not yet clear when total funding for the Oyong development will need to
be in place. However when a development decision is made, there will be a need to
raise additional equity funds to meet a proportion of the company's anticipated share
of Oyong oil and gas field development costs. It is currently anticipated that the
proportion of equity funding required will be not less than 40% of our share of
development costs."