Hi folks,Need to remember CUE has not been a one trick pony, and...

Hi folks,

Need to remember CUE has not been a one trick pony, and 10 tcf and 4 tcf targets from juniors pass the RLD very rarely. Happy if our 4 tcf hope has been winnowed out in the pre drill dte risking. More important to me that we get a drill that passes the WPL criteria.

I saw a few positives and a couple of negatives ( rare realism from an ASX junior oiler I guess) in the presentation.

The negatives being:
Maari: that the secondary recovery from water flood in he main reservoir was disappointing.
Caterina

The positives:
Jeruk: this could be a bit of a sleeping giant for CUE, remembering that there is a pretty large in ground resource albeit difficult and expensive to develope. If the JV can get a development for a modest part of this resource then I am guessing that in the longer term it is much more likely to progress on to develop more of the resource as technology develops, knowledge of the geology improves, oil price stays high and tenure over the field is retained. Cant recall seeing development of Jeruk looking as imminent before?
Pike: Presuming the Maari JV comes to terms this is getting pretty close, and at 4 times the equity as Maari and a brownfields development a pretty modest discovery of even 10 to 20 mmbo would have to be pretty good for CUE with the materiality of Maari itself.
Barikewa: Also getting close, and another potentially very material resource, which has long been flying under the radar.

Seems to me that even without WA we potentially have quite a look of interest over the next 12 months with Makaham, Barikewa and hopefully Pike and Jeruk.

But I am really hopeful of a wild card new project, given Todd didn't initiate board strengthening for nothing, and given our stronger board I hold little fear of us buying a lemon, as so many ASX oilers have.

I hate the Good to Great mantra though, just another tired cliche imho.

EL

EL