CUE ENERGY has sold its Papua New Guinean onshore exploration and production portfolio, though the company is yet to release significant details about the sale.
In a letter to shareholders ahead of its annual general meeting on 27 November, Cue Energy said it had signed a conditional agreement for the sale of the assets.
On completion, Cue said the sale would “relieve the company of a A$10 million well obligation in PRL 9 in 2015 and capture upfront value for what is likely to be a gas project at an undetermined future date with long cycle time to first cash flows.”
“A full announcement, including details of the sale price, will be made when the agreement is unconditional.”
Earlier this year, Cue said it had been approached by supermajors interested in taking on its Papua New Guinea portfolio, which includes a small interest in the South East Gobe oil and gas field and discovered resources in two retention licences.
Cue Resources chief executive David Biggs told PNG Resources at the time that any funds received from the sale would be put towards the company’s pursuit of new exploration activities in Australia and Asia.
“I’m confident the company 12 months from now will look quite different to what it does now in terms of its asset mix,” he said at the time.