Highlights

  • Cue increased quarterly cash receipts 29% to AUD 17.5 million and ended September with AUD 18.1 million cash.
  • Its PV14 well entered production in October as drilling commenced on the second Palm Valley well.
  • Mahato development activity included two wells and three workovers, with PB-42 initially producing 520 barrels daily.
  • Cue paid a sixth consecutive Dividend in October, taking cumulative cash Shareholder returns to AUD 35 million since 2024.

Improved cash collection and active drilling across two production regions defined the start of FY27 for Cue Energy Resources Limited (ASX:CUE). The September 2026 quarter delivered AUD 17.5 million in cash receipts, while developments at Palm Valley in the Northern Territory and the Mahato field in Indonesia extended the company’s programme of production maintenance, new wells and potential growth.

Cash Receipts Lead the Quarterly Result

Cue reported quarterly cash receipts of AUD 17.5 million, up 29% from AUD 13.6 million in the preceding quarter. Closing cash increased by AUD 2.4 million to AUD 18.1 million. Net production across the portfolio was 121.5 thousand barrels of oil equivalent. At Mahato, cash receipts climbed to AUD 10.2 million as timing and realised prices contributed to collections. The company’s sixth consecutive dividend was paid in October, lifting total cash returned to shareholders since 2024 to AUD 35 million. Financial receipts and production volumes reflect different drivers, so the increase in cash should not be equated with a corresponding rise in total output.

Palm Valley Adds New Well Activity

In Australia, the Palm Valley joint venture is advancing PV14 and PV15 under a programme linked to contracted Northern Territory gas Supply through 2034. PV14 was brought online on 23 October 2026 and was flowing at approximately 0.5 terajoules per day when the quarterly update was released. The operator is evaluating further data collection to understand well performance. Drilling of PV15 began on 18 October, with total depth anticipated around mid-December. Cue holds a 15% interest in Palm Valley; Central Petroleum operates the field. The wells are new components of a producing asset, rather than standalone proof of increased reserves.

Mahato Wells Support the Indonesian Portfolio

At the Indonesian Mahato production-sharing contract, two oil development wells and three workovers were completed during the September quarter. The PB-42 well achieved initial gross production of 520 barrels of oil per day from the Bekasap reservoir. The joint venture is pursuing approvals for Phase 3 development, known as OPL3, including work across the Bekasap and Telisa reservoirs. Planning also continues for the GA-1 exploration well, with the anticipated drilling timetable subject to land access and regulatory requirements. Cue holds an 11.25% interest in the Mahato contract.

A Multi-Asset Production Base

Cue also holds interests in the Mereenie and Dingo fields in the Northern Territory and the Maari Oil Field in New Zealand. These operations diversify its production across gas and oil markets. The September update reported ongoing production from the Australian fields and stronger Maari output following a successful workover. Management’s stated focus remains funding development programmes from operating cash while maintaining its shareholder return strategy. Future well results, approvals and operating performance will shape the next reporting periods.

Outlook: The Next Milestones

Cue’s near-term work includes evaluating PV14 performance, completing PV15 drilling and advancing approvals for further Mahato development and exploration.

Cue Energy Resources shares traded at AUD 0.10 on 6 November 2026, up 2.04%; intraday high AUD 0.100, low AUD 0.100, Volume 20,000 shares and Market Capitalisation approximately AUD 70.32 million.