News: Cue Energy Resources intersects reservoir quality sandstones at NZ well

Cue Energy Resources (ASX:CUE) has noted that the Whio-1 exploration well in the Taranaki Basin offshore New Zealand has intersected reservoir quality sandstones.
   
These will be assessed in more detail when wireline logs are acquired at total depth.

Operator OMV New Zealand has advised the well was at a depth of 2,670 metres and is currently drilling ahead to the planned total depth of 2,879 metres.

Whio-1 targets the Mangahewa Formation that is oil bearing in the Maari Field as well as secondary lower reservoir objectives at Kaimiro and Farewell.

Cue is free-carried by OMV in the drilling and completion of Whio-1 under the terms of a farmout agreement signed in December 2012

In the event of a commercial discovery, Cue will have a 5% interest in permit PEP 51313, in line with its interest in the Maari joint venture.

Cue had revenue of $11.94 million in the June 2014 quarter on sales of 70,279 barrels of oil and 685.985 million cubic feet of gas.

The company had $40.65 million in cash as of 30 June 2014.