Highlights

  • Cue Energy increased quarterly cash receipts to A$17.5 million and closing cash to A$18.1 million despite lower overall production.
  • The company reported 121,500 barrels of oil equivalent in September-quarter production, compared with 138,100 during the preceding June quarter.
  • Palm Valley’s PV14 began flowing after quarter-end, while the joint venture investigates factors limiting its initial gas flow rate.
  • Cue paid its final FY26 dividend in October and expects further operating updates on Indonesian wells and November Maari lifting.

Cash receipts rose while production declined at Cue Energy Resources (ASX:CUE) in the September 2026 quarter. The company reported A$17.5 million in receipts, up from A$13.6 million, and A$18.1 million in closing cash. Its 29 October update also describes a newly flowing Palm Valley well and pending work across Indonesian and New Zealand assets.

Stronger Receipts Contrast with Lower Output

Total production fell from 138,100 to 121,500 barrels of oil equivalent. Closing cash nevertheless increased by A$2.4 million from A$15.7 million at June-end.

Cue attributes stronger receipts partly to oil prices, reporting average Brent of approximately US$96 per barrel during the quarter. At Mahato, receipts rose to A$10.2 million from A$5.4 million despite production declining to 38,234 barrels from 53,849.

Cue holds an 11.25% interest in the Mahato production sharing contract. Gross field production averaged about 6,300 barrels daily, and PB-42 was connected at an initial gross rate of 520 barrels a day.

A Phase 3 development plan is in the final stages of government approval. Development is expected to follow those approvals, while GA-1 exploration drilling is anticipated in early 2027 subject to land access.

Gas Fields Require Further Work

Australian receipts totalled A$3.4 million from interests in the Mereenie, Palm Valley and Dingo gas fields, operated by Central Petroleum.

PV14 was tied in and began flowing on 23 October at approximately 0.5 terajoules daily. The joint venture is evaluating data acquisition to determine whether wellbore conditions or reservoir pressure are limiting flow.

PV15 is drilling its 12¼-inch section, with total depth expected around mid-December 2026. The programme supports a Northern Territory Government gas agreement through 2034.

At Sampang, where Cue holds 15%, output from Oyong and Wortel continues to decline. Completed Grati compression work increased gross sales gas from 5.3 TJ/d in July to about 6.6 TJ/d in September. Wortel-4 remains offline, with remediation planned for late October. Cue expects to exit the permit at expiry in December 2027.

Maari and Corporate Dates Remain Ahead

At New Zealand’s Maari field, Cue holds 5%. September output averaged 4,919 barrels of oil daily after a workover returned MR3 to production on 12 August.

The seawater injection flowline is offline following an integrity issue, and the operator is assessing restoration options. The next oil lifting is expected in the second half of November.

Cue paid a final dividend of 0.25 cents per share on 15 October, approximately A$1.75 million. That brought total FY26 dividends to half a cent per share, its sixth consecutive dividend.

Horizon Oil acquired 57.03% in July, and the board changed from 2 July. Director Richard Malcolm will retire at the close of the virtual AGM on 12 November. Operating markers include PV15 depth, Mahato approval, Wortel remediation and Maari lifting.