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CUE - CUE Energy

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Hi SC,

Just wondering if funding issues are keeping some punters away from CUE. Just read an Oil newsletter and they were questioning CUE's cash v funding demands in the near future.

Still holding a few but not many. Zeus was a dud but was merely a bonus play for CUE. Anyway, just wondering if the $$$$ are keeping the gloss off CUE.
 
hey besbs,
I sat down and went over the numbers a few weeks back...
At some point the market will have to factor in future earnings...
we are still at the beginning of the ramp up stage, we still have some water to get under the bridge as we are cashflow negative, and some debt...
reserves upgrade from HZN no surprise...
this field is twice the size of Tui...


read this when you have 10mins spare...
Cash balance prediction for quarter ended 31st March 2009...

A forward snapshot in time dated 31st March 2009 off information dated at 31st 12th 2008...
info provided, estimated costs (unless I state otherwise), and figures come from the last quarterly report...

cash balance at 31st of Dec- $12.97 million
Loan Available less used amount leaves $8.485m (28.985m-20.5m)
add them up gives a balance of $21.455m available funds...
add in revenues expected for this current quarter... estimate of $7m (not including Maari)...
Revenue for 4th quarter 2008 was $7.65m and im assuming further decline of Oyong oil production...
makes attributable cash plus existing production of $28.455m dollars...

Maari,
Two wells coming onto production (should be next week)...im assuming initial production off two wells at 5000 BOPD each... so 10,000 BOPD total, 5% gives us 500 BOPD...
Maari oil fetches around Brent benchmark... less than Tapis...
a few weeks ago we were looking at Maari oil priced around $50US per barrel... so what $45 US now...

$45/.64 (exchange rate)....gives us $70 AUS barrels * 30 days left in the quarter (assuming first production 1st March) * 500 BOPD= $1.05 M

(with oil at $50 US, and 40days of production for this quarter makes that $1.56m)...

previous availble cash balance of $28.455m + $1.05m= $29.505m...
insignificant others (interest recieved 80k)...

Expenses...
estimated expenses from the quarterly ending 31st March 2009.

anticipated development costs for the current quarter of $13.058M
Exploration costs of 979k
Admin expenses (estimated) 700k
Production costs (a wild guess I wouldnt have a clue) $5m...
(last quarterly was $4.2m)...
add them up gives... $19,737,000 M expenses...

total cash on hand, available, and expected revenues less expected expenses ($29.505m-$19.737m) leaves us with $9.76million available at 31st March 2009...

what do I think...?

CUE probably wont need to raise cash but we dont know, a further delay of production (not very likely)...
The quarterly after this one will have 3 months of Maari production (not one month),
and a third well tied in during March adding 250 BOPD...
one well tie in per month adding 250 per month...(give or take)....
Also Oyong Gas production in 3rd quarter, which will add long term yearly income of 15million (and upwards (hoping)) from 3rd quarter....
Then Manaia Tie in...
Then Wortel Gas with similar revenue targets to Oyong Gas...
30-40m all up from the two gas developments per year for the long term...
Then maybe Matariki tie in...

This company is a future cash cow...
Money always gets reinvested back into the business, so we can get further projects off the ground as we chip away at the mammoth 57 Million Barrels BOE... These initial production targets are required to get to real riches...
Through Cash Maple, PNG, further exploration coming ... further appraisal...
big time PNG 5 years away...

This company will do well in a low oil priced market...

.^sc
 
Finally back to my average entry price (14c). Don't hold many but happy to see if the Maari story continues to support CUE and keep it growing. I can't see this bolting on production news in this market (even though the news might be great) so just hoping to see slow SP progress in a northward direction. I'd be very happy with 16c by month';s end if it were to eventuate...
 
hey BESB's player...
its really amazing that there isnt much interest in this company,
or even our major project...
We are sitting on a World Class project...
the biggest oil field in New Zealand...
And the biggest exploration well in NZ this year coming in the 4th quarter

.^sc
 
Trading Halt called for CUE.

Capital raising announcement is awaited.

Let's hope there's something positive to announce with it! Like Shrewd Crude, I thought they had enough cash and assured income to avoid a call at this stage.
 
CUE up 22.58% today - last sale 0.19.

I have been stuck in them for a long time at.195, so this is a great relief.

Must be to do with the share in 15% in Artemis.

Jigalong
 
Jigalong said:
CUE up 22.58% today - last sale 0.19.

I have been stuck in them for a long time at.195, so this is a great relief.

Must be to do with the share in 15% in Artemis.

Jigalong
Click to expand...

Yes, the MEO presentation today put an $830m potential value on MEO's 20% interest in Artemis!

$622m for a 15% share would be nice!

 
Hi oldblue,

Your one of the long term CUE holders. What has happened to Jessica Wabbit ? Don't say she bailed out.

Jigalong
 
Still here guys, just lurking.

Nice day for CUE, feels good to see the market finally taking notice and revaluing the stock.

I'm holding 498,000 shares (up $17,400 today) and although the financial crisis saw the SP drop significantly i decided to hold because nothing had changed with the fundermentals. Topped up a few extras at 15 cents.

I'll most likely hold until the gas Oyong gas comes on line but always happy to sell a few and buys some new toys, like a new motorbike.

The remaineder of the year should be very interesting and i think there little risk but loads of potential upside.

All the best JW
 
Just to add that tomorrow and the remainder of this week will be significant in terms of volume and SP direction in my opinion. Following a gap up and subsequent fill of that gap with significant volume it is going to be very interesting to see where the market takes us this week.

With the US choppy on Friday but DJIA ending slightly ahead and oil up $0.89to $68.05 although not super positive it is not negative for energy stocks for tomorrow.

I am looking for volume to exceed Fridays 5.2M at least one day this week, preferrably tomorrow. This stock is still tightly held even though we just had a capital raising, most of those shares went to the big boys so any significant demand should see the SP head north.

On the negative side, oil stock piles seem to be growing which if that continues will eventually bring down the price of oil because the fundermentals just can not justify the price to keep increasing. I'm also becoming bearish in the short - medium term (until mid November) and feel a pull back is due but the markets keep proving me wrong.
Been reading some particularly disturbing reports about potential commercial property defaults in the US which also has me concerned.

I'm sitting on the fence with my superannuation in cash and Cue steaming ahead with the market. I got to say i am a little confused by it all and finding it difficult to understand which way to go, hence the super in cash.

Anyway, guess you just got to have a bit each way when there is uncertainty and you are bound to get one of them correct.

Really looking forward to the week ahead and more so the decision about who farms into the Artemis MEO gig.

Good luck to all fellow CUE holders JW
 
Worthwhile keeping an eye on Cue today and for the remainder of the week.

Aftr volume of 4.2M yesterday, a rise in oil over night and with more positive sentiment for the markets things are looking good for Cue.

The NWS gas gig with MEO is hotting up and we should have an answer soon regarding the new JV partner but until then hold onto your seats.

Plenty of things scheduled for the coming two weeks, with Maari production pumping and Matriki and MR2 ready to roll. Spikey Beach and Oyong gas coming shortly.

Best to the long termers, I have been waiting for this for three years and it seems to be coming together like the perfect storm.

JW
 
G'day groovers........

Nice to see Maari is pumping out $39,000 BOPD and we have 5%, should make for nice news next quartley report.

JW
 
Na holding tight Blue, did myself a little trade the other week and sold a few at 25 & 26 cents, top of the market, i then bought back in at 22.5 cents to increase my holding to 499,991 shares. Bit of a dabble.

I'll look for another trade if it presents itself because i think there will be lots more opportunity to increase my stake before we reach a number i am happy to sell out at.

Blue, i cant wait for the next month to unfold, more so if oil and the DOW JONES continue to climb. However, i cant help but feel a pull back it due. Mind you i have thought that since the DOW broke 8,000 and i have been wrong ever since.

Anyways, thing are looking very promising and when those BOPD are converted into cash and unveiled to the market next quarterly it should wake up a few people to waht is going on here.

All the best JW.
 
Hey Blue,

is it just you and me on this now??

I noticed HZN had a strong day and i think with the projects (artemis, Oyong Gas) we have happening at present, Spikey Beach, about to kick off and the Manaia drill finding hydrocarbons next week could see some upward pressure on the SP.

Looking forward to the next quarterly and revenue from Maari.

I dont see how the price will remian at these levels with so much going on?

The top up i did at 15cents and the averaging down i did when the share price fell are now all green and looking very good.

JW
 
"is it just you and me on this now??"

Don't forget about me Ms Wabbit. I have held true with my 200T at 19.5.

How are you doing Ole Blue ?

My oilers have been quiet lately and I am stuck with a big lump of that dog Beach. My gold stocks are going gangbusters though.

Good luck to both of you Cuebists,

Jig.
 
Hi Jigalong,

19.5 is a good entry price, there seems to be a resistance at about 21 cents and unless oil drops back i just dont see much chnace for that to be tested with the new revenue streams currently coming on line.

We must be due for another update regarding Oyong Gas, in fact, it should be just about ready to start producing. From memory i thought thet said about September for first gas? Even if it is delayed another month, in the scheme of things i couldnt care less. Main thing is it is on the way.

With Beach, i dont know much about them other than their involvement with Spikey Beach. Subject to how the Spikey drill goes you might be glad you are holding them if we hit hydrocarbons of commercial worth.
I dont know a great deal about how high a chnace we have of getting something worthwhile with Spikey, i have always just thought of it as a bonus if it comes through.

With CUE there is loads on money coming in from Maari and there will be new gas soon from Oyong this will be reflected in the books come the next 6 months. We are due for a revaluation in my opinion, if Manaia, Spikey or Artemis prove to be commenrcial finds then this is a bonus and a very nice one at that.

Just need patience, i have been on this for about 3 years now and the projects i have been waiting for are all about to happen, a little slower than i had anticipated but thats all behind us now. Looking forward to Xmas this year.

JW
 
Looking primed for a move today after yesterdays close of 24.5 cents and oil up $3 over night. Volume was good yesterday and it was good t see the sellers from 22-24.5 get removed because they had kept it in ramge for some weeks.

If the sellers at 25 cents get taken out at open then i dont see much stopping it after that............

Plenty of juicy annoucements coming our way in the next few weeks, so should be just a matter of sitting back and watching the action.

Keeping a close eye on MEO & HZN and we seem to be moving in correlation with both those stock due to our invovlement in projects together.

Enjoy the day all those on CUE, should be an interesting one.

JW
 
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