PDL3 link to flyer Includes an interest in SE Gobe Unit (part of the SE Gobe Oil and

Gas Field)

Cue Interest:

PDL3 – 5.57%

SEG Unit – 3.29% oil (2.61% gas)

Gross oil production ~1,500 Bopd

Gross proved & probable reserves (2P) 31.6 MMboe (as at

December 2012 excl. 660 Mbbl subsequent production)

Gas production expected to supply the PNG LNG project from H2

2014

SE Gobe field operated by Oil Search

PRL9 link to flyer Retention licence being renewed

Barikewa gas discovery with gross contingent resource (2C) of 299

BCF

Upside gross contingent resources (3C) of 823 BCF

Cue interest 14.89%

Adjacent to the PNG LNG project pipeline

Appraisal drilling in retention licence renewal work program

Operated by Oil Search

PRL14 link to flyer Cobra, Iehi and Bilip discoveries with gross aggregate

contingent resource (2C) of 595 BCF and multiple TCF

upside

Cue Interest 10.95%

Identified oil leg in Bilip and possible oil upside at Iehi

Adjacent to SE Gobe field and PNG LNG project pipeline

Operated by Oil Search

Cue Energy is proposing to divest its PNG portfolio which includes an interest in the South East Gobe

oil and gas field (SEG Unit in PDL3) and discovered resources held in retention licences PRL9 and

PRL14, located onshore Papua New Guinea. This opportunity provides immediate production and

future large scale development potential.

Process and Timing Cue Energy is proposing to offer for sale, directly or

indirectly, all its PNG interests as one package, although

interest in a single licence will be considered. A

confidentiality agreement (CA) will be made available to

interested parties to access the virtual data room.

Expressions of interest and CA by 4 July 2014

Offers to be received by 1 August 2014

Sean Hanrahan, PNG Project Manager +61 3 8610 4000 Sean.Hanrahan@cuenrg.com.au

www.cuenrg.com.au

BCF - Billion cubic feet Bopd – Barrels of oil per day Mbbl – Thousand barrels

MMbbl – Million barrels MMboe – Million barrels of oil equivalent MMscf – Million standard cubic feet

TCF – Trillion cubic feet

Papua New Guinea onshore Portfolio - Production & Significant Discovered Resources

PDL3 - SOUTH EAST GOBE OIL & GAS PRODUCING FIELD

Cue Energy is proposing to divest its PNG portfolio which includes an interest in the South East

Gobe oil and gas field (SEG Unit in PDL3 and associated Pipeline Licence No. 3) and discovered

resources held in retention licences PRL9 (Barikewa) and PRL14 (Cobra, Iehi & Bilip).

# Operator SE Gobe Field & SEG Unit * Operator PDL3 excluding SE Gobe

1 SEG Unit interests for oil production only

*Reserves as at 31 December 2012 excluding 660 Mbbl subsequent production to 31 March, 2014

1 Cue has a 3.286% interest in the SEG Unit oil production

2 Cue has a 2.606% interest in the SEG Unit future gas production

PDL3 contains a portion of the SE Gobe oil and gas field (operated by Oil Search). PDL3 was granted

in December 1996 (expiry December, 2021 and extendable). The SE Gobe field includes the South

East Gobe Unit (SEG Unit – refer below). Cue’s interest in PDL3 is 5.57%, and in the SEG Unit is

3.286% for oil and 2.606% for future gas production.

South East Gobe Unit (SEG Unit) and Unit Operating Agreement (SEGUOA)

The SE Gobe field straddles a portion of PDL3 and PDL4. Together participants in PDL3 and PDL4

make up the SEG Unit. Oil from the SE Gobe field is processed via the Gobe Processing Facility, which

also processes oil from the Gobe Main field.

Production

First production from SE Gobe commenced in 1998 and cumulative life-of-field production is 44

MMbbl through Q1, 2014 from the Iagifu Sandstone. SE Gobe is currently producing approximately

Joint Venture Partner PDL3

Interest SEG Unit Interest1

Cue PNG Oil Company Pty Ltd 5.57% 3.286%

Southern Highlands Petroleum Company Ltd

40.15% 23.688%

Oil Search (PNG) Limited# 36.36% 25.552%

Barracuda Limited (Santos)* 15.92% 9.394%

Petroleum Resources Gobe Limited 2.00% 2.000%

Ampolex (Highlands) Limited (Esso) - 5.952%

Merlin Petroleum Company - 30.128%

TOTAL 100.00% 100.000%

100% Terms 1P Proved Reserves 2P Proved & Probable Liquids

MMBBL1

Gas BCF

2

MMBOE Liquids MMBBL

1

Gas BCF

2

MMBOE

PDL3 – SE Gobe 1.6* 144 25.6 2.3* 176 31.6

1,500 Bopd (gross) with gas being reinjected. Production is processed at the nearby Gobe Processing

Facility and exported via the Kutubu pipeline.

As oil production naturally declines, the field will transition to gas production and is expected to

supply the PNG LNG project from H2 2014 at up to 35 MMscf per day.

Product Transportation and Marketing

Cue has a 1.64% interest in Pipeline Licence No. 3 that links the Gobe Processing facility to the

Kutubu pipeline. The other interests are held by members of the SEG Unit.

Oil Search, the operator of the SE Gobe field, markets the oil on behalf of Cue through a marketing

agency agreement. Gas is expected to supply the Exxon operated PNG LNG pipeline and facility from

H2 2014.

LINK TO COVER

Process and Timing

Cue Energy is proposing to offer for sale, directly or indirectly, all its PNG interests as one package, although interest in a single licence will be

considered. A confidentiality agreement (CA) will be made available to interested parties to access the virtual data room.

Expressions of interest and CA by 4 July 2014

Offers to be received by 1 August 2014

Sean Hanrahan, PNG Project Manager +61 3 8610 4000 Sean.Hanrahan@cuenrg.com.au

www.cuenrg.com.au

BCF - Billion cubic feet Bopd – Barrels of oil per day Mbbl – Thousand barrels

MMbbl – Million barrels MMboe – Million barrels of oil equivalent MMscf – Million standard cubic feet

TCF – Trillion cubic feet

RETENTION LICENCE PRL9 – BARIKEWA GAS DISCOVERY

Cue Energy is proposing to divest its PNG portfolio which includes interests in the Barikewa

discovered resource in retention licence PRL9, the South East Gobe oil and gas field (SEG Unit in

PDL3 and associated Pipeline Licence No. 3) and discovered resources held in retention licence

PRL14 (Cobra, Iehi & Bilip).

PRL9 is located approximately 20km south east of the SE Gobe oil and gas field and covers an area of

567 km2. The retention licence was initially issued on 18 December, 2002 and extended on 18

December, 2007. An application for further extension has been lodged with the PNG government

with a proposed extension through to 2017. The application for extension includes a work program

that provides for a Barikewa appraisal well.

PRL9 contains the Barikewa Gas Discovery and has a gross contingent resource (2C) of 299 BCF with

upside to 823 BCF (gross 3C).

Barikewa Gas Discovery

The Barikewa-1 well was drilled in 1957 and proved separate gas on rock accumulations in 15-20m

thick sands of the Toro and Hedinia formations. The Barikewa-2 appraisal well was drilled in 1982 on

the northern flank of the anticline and was found to be dry. Subsequent 2-D seismic showed that

Barikewa-2 is modestly down dip on the structure. Barikewa-2 is separated physically and

hydraulically from Barikewa-1 by faulting. Pressure data indicates potentially long gas columns of up

to 170m. The deeper Magobu Formation was not penetrated and provides additional upside

potential in the form of prospective gas resources.

Joint Venture Partner PRL9 Interest

Cue PNG Oil Company Pty Ltd 14.89%

Oil Search (PNG) Limited* 45.11%

Barracuda Limited (Santos) 40.00%

Total 100.00%

Contingent Resource Estimate (Toro and Hedinia Reservoirs) BCF - 100% terms

1C 2C 3C

71 299 823

* Operator

Further 2D seismic was acquired in 2009, the analysis of which provided a more reliable structural

interpretation of the gas bearing Toro-C Sandstone and Hedinia Sandstone levels that significantly

reduced the remaining uncertainty in the reserves attributed to these reservoirs.

Top Toro C Depth

SPILL POINT

P50 52km2 -1540mssML 164km2 -1591mssMAX 240km2 -1640mss

Top 148_Hedinia DepthTop Hedinia Depth

SPILL POINT ~-1700mss

55km2 max

-1673mss

Work Commitments

The application for extension of PRL9 includes the following work program:

Barikewa-3 appraisal well (to evaluate the Toro and Hedinia reservoirs)

Technical and G&G studies

Contingent acquisition and processing of 60km 2D seismic

Commercial Development There are currently a number of domestic and export focussed gas development studies occurring in

PNG including the potential expansion of the Exxon operated PNG LNG project. This provides

significant opportunity for the potential development of the Barikewa resource.

The Barikewa resource, located just 5km from the PNG LNG pipeline, is positioned well to supply any

of the gas study development options.

LINK TO COVER

Seismic Interpretation – SP98-01

BCF - Billion cubic feet Bopd – Barrels of oil per day Mbbl – Thousand barrels

MMbbl – Million barrels MMboe – Million barrels of oil equivalent MMscf – Million standard cubic feet

TCF – Trillion cubic feet

Process and Timing

Cue Energy is proposing to offer for sale, directly or indirectly, all its PNG interests as one package, although interest in a single licence will be

considered. A confidentiality agreement (CA) will be made available to interested parties to access the virtual data room.

Expressions of interest and CA by 4 July 2014

Offers to be received by 1 August 2014

Sean Hanrahan, PNG Project Manager +61 3 8610 4000 Sean.Hanrahan@cuenrg.com.au

www.cuenrg.com.au

RETENTION LICENCE PRL14 – COBRA, IEHI & BILIP DISCOVERIES

Cue Energy is proposing to divest its PNG portfolio which includes interests in the Cobra, Iehi and

Bilip discovered resources in retention licence PRL14, the South East Gobe oil and gas field (SEG

Unit in PDL3 and associated Pipeline Licence No. 3) and Barikewa discovered resource in retention

licence PRL9.

PRL14 is located to the south and east of PDL3 and the SE Gobe field. The licence covers an area of

425 km2 and was issued on 22 November, 2010 for a 5 year term (expiry 23 November, 2015) with

the possibility to apply for several extensions. PRL14 contains three discoveries with an aggregate

gross contingent resource (2C) of 595 BCF gas and 1 MMbbl oil. There is possible further oil upside at

Iehi and potential for multiple TCF upside.

* Operator

Cobra Gas Discovery

Cobra is located 15km to the east of the SE Gobe field. Cobra-1A ST3 was drilled in 2008 and

discovered gas and condensate. A 34m gas (on rock) column was intersected in the Upper Hedinia

Sandstone (1715-1749 mss), the proven Lowest Known Gas (LKG) is 1,749 mss (base of the reservoir

section) and most likely Gas Water Contact (GWC) is interpreted at 1,784 mss from pressure data.

The crest of the Cobra structure (Top Upper Hedinia surface) is estimated at 1466 mss and the

intersection of the GWC and Top Upper Hedinia establishes a field area of 32.7 km2 with a potential

gas column of 318m.

Iehi Discovery

Iehi is located 15km south east of the SE Gobe field. Iehi-1 was drilled in 1960 and intersected a 35m

gross gas (on rock) column within the early Cretaceous aged Toro Sandstone. A production test was

Joint Venture Partner PRL14 Interest

Cue PNG Oil Company Pty Ltd 10.95%

Oil Search (PNG) Limited* 62.56%

Murray Petroleum Company Ltd 26.49%

Total 100.00%

Contingent Resources (2C) – 100% terms

Gas BCF Oil MMbbl

Cobra 309 -

Iehi 250 -

Bilip 36 1

undertaken at a maximum rate of 32.6 MMscf/d. The Lowest Known Gas (LKG) is 1,283 mss (base of

the reservoir section), and using regional aquifer data the most likely Gas Water Contact (GWC) is

1,320mss indicating a gas column height of approximately 90m.

The well logs showed an anomalous resistivity response in the 52m thick Iagifu Sandstone suggesting

there could be bypassed oil.

Oil shows were also present in Hedinia Sandstone cores, and resistivity anomalies (untested) are

present in the Koi-Iange Formation.

Iehi-1 Petrophysics of the Toro, Hedinia, Iagifu and Koi-Iange reservoir sections

Bilip Discovery

Bilip is located 10km east of the SE Gobe field. Bilip-1 was drilled in 2002 to test a hanging wall

anticline and intersected a gross gas column of 18.2m and underlying 15.8m oil column in the Iagifu

Sandstone (late Jurassic Imburu Formation). Pressure data defines a GOC at 1720 mss (2,437.6 mRT)

and an OWC at 1735.8 mss (2,453.4 mRT). A closed chamber DST captured approximately 60 bbls oil

(42-46 o API) and gas during reverse circulation.

The Bilip hydrocarbon accumulation straddles the PRL14 and PDL4 boundary and is mapped to cover

an area of 7.5 km2 with a maximum relief of 240m (1480-1720 mss). The gas cap is mostly in PDL4

but 30-50% of the oil leg volume, approximately 1 MMbbls, is in PRL14. The overall structure has a

potential recoverable oil volume of 2-3 MMbbls oil.

I

Bilip-1 Pre-drill Structural Model

Work Commitments

The approved minimum work program for the duration of the licence includes geological mapping,

G&G studies, gas market analysis and review of development options. The minimum work program

has been largely completed.

Commercial Development

There are currently a number of domestic and export focussed gas development studies occurring in

PNG including the potential expansion of the Exxon operated PNG LNG project. PRL14 is in very close

proximity to existing production and infrastructure and there are a number of potential options for

the future development of the Cobra, Iehi and Bilip resource discoveries. Several oil development

options may be available for Bilip including a flowline and separator connecting to Gobe Facilities,

flowline connecting to existing SE Gobe Facilities, and separation at Bilip and trucking to Gobe

Facilities.

LINK TO COVER

Process and Timing

Cue Energy is proposing to offer for sale, directly or indirectly, all its PNG interests as one package, although interest in a single licence will be

considered. A confidentiality agreement (CA) will be made available to interested parties to access the virtual data room.

Expressions of Interest and CA by 4 July 2014

Offers to be received by 1 August 2014

Sean Hanrahan, PNG Project Manager +61 3 8610 4000 Sean.Hanrahan@cuenrg.com.au

www.cuenrg.com.au

BCF - Billion cubic feet Bopd – Barrels of oil per day Mbbl – Thousand barrels

MMbbl – Million barrels MMboe – Million barrels of oil equivalent MMscf – Million standard cubic feet

TCF – Trillion cubic feet

DISCLAIMER

This document has been prepared by Cue Energy Resources Limited (Cue Energy) using publically available information and Cue

Energy’s own information. It has been prepared for illustration purposes only and should not be relied upon for investment

decisions. Except as required by law, Cue Energy, and its respective affiliates, officers, employees, agents and consultants, make

no representation or warranty, nor give any assurances in relation to the accuracy or completeness of the contents of this

document and take no responsibility for any loss or damage suffered as a result of any omission, inadequacy or inaccuracy

herein. Each recipient should conduct its own independent investigation and assessment of the contents of this document and

make such additional enquiries as it deems necessary or appropriate. Statements or assumptions in this document as to future

matters may prove to be incorrect. Cue Energy makes no representation or warranty as to the accuracy of any statements or

assumptions contained herein. The only information upon which a recipient may rely in any manner will be that information, if

any, specifically warranted by Cue Energy in a final executed agreement with the interested party, subject to the terms and

conditions of that agreement. Any sale process will be subject to typical regulatory approvals.

This document is not an offer, recommendation, solicitation or invitation of any offer or invitation to sell or purchase shares in

Cue Energy or any of its affiliates or any assets of Cue Energy or any of its affiliates. This document has not been filed, lodged,

registered or approved in any jurisdiction and recipients of this document should keep themselves informed of and comply with

and observe all applicable legal and regulatory requirements. This document is provided to the recipients on the basis that each

recipient warrants that it/he is a person to whom an offer or invitation to sell or purchase shares or assets may be made without

any requirement for filings, lodgements, registrations or approvals in the jurisdiction in which this document is received by such

recipient.

FOR FURTHER INFORMATION

Sean Hanrahan, PNG Project Manager +61 3 8610 4000 Sean.Hanrahan@cuenrg.com.au

www.cuenrg.com.au