News: Cue Energy Resources acquiring producing oil field in Texas

Cue Energy Resources (ASX:CUE) is acquiring an 80% operating stake in the producing Pin Mills oil field, 160 kilometres east of Dallas, Texas, for US$2 million from Gale Force Petroleum (TSXV:GFE).

Pin Mills currently produces about 90 barrels of oil per day and should add about 300,000 barrels to the company’s Proved and Probable (2P) Reserves.

This represents a 7-10% increase in Cue’s daily oil production and more than 10% to its 2P Reserves.

Cue is also obligated to carry US$1 million in operating and capital expenses for Gale Force’s retained interest over the next four years.

The Pine Mills field includes 14 currently producing, conventional, vertical wells, two water injection wells and a further 13 currently inactive wells.

There is an opportunity to quickly increase production from the Pine Mills field through the low cost workover of producing and inactive wells.