How Cue Energy Balanced Gains and Losses to Keep 2P Reserves Flat at 5.5 mmboe

Stable Reserves Amid Mixed Field Performance

Cue Energy Resources Limited has released its 2025 Reserves and Resources Statement, revealing a steady total of 5.5 million barrels of oil equivalent (2P reserves) as at 1 July 2025. This stability comes despite contrasting production dynamics across its asset portfolio, underscoring the company’s ability to manage reserve replacement amid operational challenges.

The Sampang field in Indonesia demonstrated improved production performance, contributing positively to the reserves tally. However, this was counterbalanced by faster-than-expected production declines in the Oyong and Wortel fields, also in Indonesia, which reported less output than anticipated. Such variability is not uncommon in mature fields but highlights the ongoing challenges Cue faces in maintaining production levels.

Incremental Gains in Key Australian and New Zealand Assets

On the other side of the ledger, Cue recorded increases in 2P reserves at its Australian Mereenie and Dingo fields, as well as the offshore New Zealand Maari field. These gains reflect successful reservoir management and possibly new appraisal data, helping to offset declines elsewhere and maintain the overall reserve base.

Importantly, Cue’s contingent resources (2C) also grew by 0.8 million barrels of oil equivalent, primarily due to the addition of the Telisa reservoir in the Mahato field. This reservoir is expected to become a production target from fiscal year 2026 onwards. While contingent resources are not yet classified as reserves, their potential commercialisation could provide a meaningful boost to Cue’s future production profile.

Governance and Reporting Standards

The reserves statement complies with the Society of Petroleum Engineers’ Petroleum Resources Management System (SPE PRMS) guidelines, ensuring transparency and consistency in reporting. The assessment was independently verified by Daniel Leeman, a Chartered Engineer with extensive experience in petroleum reserves evaluation, adding credibility to the figures presented.

Cue holds varying equity interests across its fields, including 15% in Sampang, 11.25% in Mahato, and 5% in Maari, which influence the net reserves reported. The company’s diversified geographic footprint across Australia, New Zealand, and Indonesia provides a balanced exposure to different production environments and regulatory regimes.

Looking Ahead

While the overall reserves position remains stable, the faster decline in some Indonesian fields and the contingent nature of new resources like Telisa introduce elements of uncertainty. Cue’s ability to commercialise these contingent resources and manage production declines will be critical to sustaining its reserve base and revenue streams in the coming years.