Decided to take some BKP profits and place them into CUE.Why:1....

Decided to take some BKP profits and place them into CUE.

Why:

1. CUE has been given Indonesian Government regulatory approval to take a 40% interest in the Mahakam Hilir PSC, in the Kutei Basin in Eastern Kalimantan.
2. This target area is on the boundary of the already producing Sambutan gas/oil field. The Sei Nagka and South Perlang oil fields are all located on the western boundary of this drill target. This means that while still a wildcat, at least oil has been found in the region.
3. Cue will repay US$4m in past costs but they have the cash. Risk of CR is reduced.
4. The target is decent. The indicative recoverable reserves are 20 million barrels for the first well andthe second has the potential to deliver 80 Bcf of gas.
5. At current SP, CUE is within 10% or so of their annual low.

As CUE is not traditionally a punter's favourite, I don't expect huge returns. Nonetheless, they are aiming for a late Q4 drill and given the target size, we should hopefully see some BESBS gains with minimal risk (given we are operating in the market!) in the outlay.

Just my thoughts. DYOR...