Cue Energy Resources Limited A.B.N. 45 066 383 971 RELEASE WA-360-P Update On 21 December 2009, MEO through its wholly owned subsidiary North West Shelf Exploration Pty Ltd, under the terms of the farmin agreement with Cue Exploration Pty Ltd a wholly owned subsidiary of Cue Energy Resources Limited and Rankin Trend Pty Ltd, irrevocably committed to drill the Artemis 1 well in WA-360-P at its sole cost. Cue will have a 15% interest in the well and will be fully carried for all costs related to the well. MEO has announced that the well will be drilled in Q3/Q4 2009. MEO has been in negotiations with a potential farminee in relation to MEOs 70% interest in the well. Cue is not a party to those negotiations, but has been asked to vary a number of significant provisions of the current Joint Venture Operating Agreement (together with a Heads of Agreement WA-360-P). In our view the proposed amendments disadvantage Cue and its shareholders relative to the status quo. We are continuing discussions in an attempt to resolve these differences. Cues 15% free carried interest in the Artemis 1 well will not be altered by the outcome of these discussions. Participants in WA-360-P are: Cue Exploration Pty Ltd 15% North West Shelf Exploration Pty Ltd 70% (MEO subsidiary, Operator) Rankin Trend Pty Ltd 15% (Moby Oil & Gas Limited subsidiary) Any queries regarding the announcement should be directed to the Company on (03) 9670 8668 or email [email protected]. Robert J Coppin Chief Executive Officer 24 March 2010
MEO Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held