I am seriously confused with Cue managements philosophy. Cue has been stating New Zealand growth potential in presentations for the last 2Q's but have now joined JV partners in a farm down of the entire permit to get Whio (a small prospect) drilled. No talk of costs of course for the well and the timing of the well is end 2013 at the earliest.
I would have thought that 20% of an exploration well in a growth area was manageable, no even essential. Especially given the talk of low risk and sub-surface similarities to Maari Field only 4km away. With not much else in the pipeline this is hard to comprehend. 20% down to 14% then to 5% if it works I wish they had said what the monetary aspects of the deal were. It doesn't make sense to me.
CUE Price at posting:
15.5¢ Sentiment: Sell Disclosure: Held
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