weak aussie dollar gives cue good prices

Based on a price of 70 USD a barrel for oil and the fact that CUE has hedged quarter of its share of its oil production at 86 USD a barrel, the weak aussie dollar is not such a bad thing for the revenue the company is currently picking up

Of course this figure only holds up on current exchange rates and oil prices.

My calculations based on the above is as follows

CUE's stated average quartely production of oil

180000 barrels

Hedged barrels on quartely production

45000 barrels

Therefor

135000 x 70 / 0.83 = 11,385,542,20

45000 x 86 / 0.83 = 4,662,650.60

Total 16,048,192.80

So at todays exchange rate ( 0.83 ) the average price per barrel that CUE is receiving equates to just over 89 AUD

That's not to say that the oil price and exchange rates will not move one way or the other. I am just pointing out that CUE's position has not been affected by movements in commodities and foreign currencies

The fact that CUE has to commit to new projects and pull out money in USD's may neutralise the increased revenue that they will receive from weakness in oil price and AUD

Another point I would like to make, is that the gas price has moved up, which has created increased revenue to CUE due to the AUD/USD exchange rate movements

All in all based on the above calculations and the future activities and growth of CUE, I believe the company has exciting prospects

As always the above comments should not be construed as investment advice