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Cue Releases Drilling Update on Indonesian Property

Naga Utara-1 Well, Mahakam Hilir PSC, Indonesia
(ASX: CUE; NZX: CUE; POMSOX: CUE; ADR/OTC: CUEYY)

Cue Energy Resources Ltd is pleased to provide the following update on the drilling status of Naga Utara-1. The well is located within the Mahakam Hilir PSC in the onshore Kutei Basin, Indonesia. The well operator is SPC Mahakam Hilir PTE Ltd (SPC).

As of the 16th March 2012 the sidetrack has reached total depth of 5066 feet MD.

The open-hole section below 4645 feet (MD) has been logged using wire-line. A gas sample was successfully obtained using wire-line tools. The results are being evaluated.

An open-hole drill-stem well test is being conducted.

The forward plan is to continue the well test and evaluate.

The participants and their respective interests in the PSC are:

SPC Mahakam Hilir Pte Ltd (Operator) 60%
Cue Mahakam Hilir Pty Ltd 40%

Cue will continue to release reports of well progress on a weekly basis or when further information is available.

The full release can be found in the above pdf.

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