Highlights

  • Palm Valley 14 began flowing gas through the field gathering system on 23 October 2026.
  • The reported current PV14 flow rate is approximately 0.5 terajoules per day.
  • Palm Valley 15 was drilling at 947 metres measured depth in its 12¼-inch section.
  • Cue has a 15% participating interest in the Palm Valley permit, with another company operating the field.
  • The joint venture is evaluating factors affecting PV14 flow while PV15 targets total depth around mid-December 2026.

Cue Energy Resources Limited (ASX:CUE) produces and explores for oil and gas through Assets in Australia, Indonesia and New Zealand. Its Northern Territory operations include a minority interest in the Palm Valley gas field, where a newly drilled well has started delivering gas into the gathering system. The 28 October 2026 update also outlined progress at a second well, with questions remaining at both wells.

Palm Valley 14 Begins Flowing Gas

Palm Valley 14, also called PV14, started flowing through the field gathering system on 23 October 2026. Cue Energy Resources Limited (ASX:CUE) reported a current gas rate of approximately 0.5 terajoules per day (TJ/d), without presenting it as a sustained production rate or a long-term production measure.

The joint venture is considering a data Acquisition program to assess whether wellbore conditions, reservoir pressure or a combination of the two is affecting flow. No timetable for this evaluation was provided. The release also did not specify the well’s measured depth, producing zones or an expected flow rate against which the current figure could be compared.

The distinction matters because a point-in-time flow rate does not establish expected recovery or revenue. Cue (ASX:CUE) has not provided a production forecast for PV14, and further measurements would be needed to describe its contribution over a longer operating period.

Palm Valley 15 Drilling Continues

At Palm Valley 15, or PV15, drilling was progressing in the 12¼-inch hole section. The well had reached 947 metres measured depth when the announcement was prepared. The joint venture anticipated reaching total depth around mid-December 2026.

Cue Energy Resources Limited (ASX:CUE) did not announce a discovery, a test result, a target depth or a potential flow rate for PV15. Reaching total depth would be a drilling milestone; decisions about testing, completion and production require separate information that has not yet been disclosed.

Joint Venture Interests and Reporting Context

Palm Valley operates under permit OL3. Cue (ASX:CUE) holds a 15% participating interest, Central Petroleum (NT) Pty Ltd holds 50% and operates the field, and Echelon Palm Valley Pty Ltd holds 35%. The operator directs field activity.

The company’s FY2026 Annual Report recorded group Revenue of $50.3 million, net production of 560 Mboe, operating cash generated of $19.8 million and closing cash of $15.7 million, with no Debt at 30 June 2026. These are group-wide measures, not financial results attributable to the two Palm Valley wells. The October drilling update did not disclose drilling costs, new expenditure commitments or the wells’ expected earnings.

Operational Uncertainties and Next Steps

The PV14 evaluation remains open because the factors influencing gas flow have not been established. For PV15, drilling must proceed before the partners can report any further well outcome. Changes in drilling conditions or reservoir performance could affect the schedule and subsequent decisions.

Cue Energy Resources Limited (ASX:CUE) identified two distinct areas for additional disclosure: findings from the PV14 flow evaluation and progress towards PV15 total depth around mid-December 2026. Neither a timetable for the evaluation nor a production commencement date for PV15 was provided.

Key Insights

The Palm Valley update establishes that PV14 has begun delivering gas into the field system and that PV15 drilling continues. It does not establish durable production rates, future financial contributions or a completed outcome for the second well. Cue (ASX:CUE) participates through a minority joint venture interest, leaving further operator data relevant to both wells.