Cue Energy has executed an agreement with Central Petroleum for interests in three onshore assets in the Northern Territory.
Cue will acquire a 7.5 per cent interest in the Mereenie oil and gas field, a 15 per cent interest in the Palm Valley gas field and a 15 per cent interest in the Dingo gas field, all located in the NT’s Amadeus Basin.
The transaction will see Cue acquire 4.4 mmboe of 2P reserves, while the company will pay Central $8.7 million in cash on completion and fund $12 million Central’s exploration, appraisal and development costs in the fields.
Central will remain operator of the fields and will continue to manage oil and gas sales on behalf of Cue.
Cue CEO Matthew Boyall said the acquisition is in line with Cue’s strategy of investment.
“This is a great opportunity for Cue to add producing assets onshore Australia to our portfolio,” he said.
“All three fields are operated by a good operator in Central Petroleum and have existing production and near-term development plans which provide multiple pathways to grow.”
The deal will increase Cue’s 2P reserves by more than 350 per cent.
For more information visit the Cue website.