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  • Oil explorer Cue Energy Resources will be joining three other companies in a massive oil drilling operation, offshore WA
  • Under operation by BP Developments Australia, Beach Energy and New Zealand Oil & Gas alongside Cue, the prospect will undergo surveys later this year for a 2020 start
  • The Ironbark-1 well will be operated by BP for a massive 42.5 per cent interest while Cue comes in second with 21.5 per cent interest over the remaining contributors

Oil and gas explorer Cue Energy Resources has jumped on a joint venture with three other companies to begin drilling oil offshore WA.

The Ironbark-1 well is expected to reach depths of 5,500 metres, commencing late next year under Cue, BP Developments Australia, Beach Energy and New Zealand Oil & Gas. The agreement has been in the works since October 2016.

Cue Energy CEO Matthew Boyall says the Ocean Apex rig is ready and under the best hands possible.

“BP, Beach and New Zealand Oil & Gas are technically strong, well-funded partners and Cue is very excited to be working together in this joint venture to drill a well in the Ironbark prospect,” he said.

Boyall called the agreement a high-impact achievement with potential for be company changing.

“Cue holds a significant, 21.5 per cent participating interest in the world-class Ironbark prospect, which has the best estimate 15 [trillion cubic feet] of prospective recoverable gas and is close to existing [liquified natural gas] infrastructure,” he said.

BP will be taking the cake on this one, operating on the project for 42.5 per cent interest. Cue is coming in second, just beating Beach Energy by .5 of a per cent at 21.5 per cent. New Zealand Oil will be having the smallest serve at 15 per cent.

The latest in environmental plan applications have been granted. Survey operations will the next quarter this year.

Today’s announcement gave shareholders in CUE a 6.06 per cent bump in pricing. Shares are currently trading for seven cents a piece in a $46.07 million market cap.

CUE by the numbers
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