Cue Energy drills 1556 feet MD at Naga Selatan-1 Well, Mahakam Hilir PSC, Indonesia May 2, 2012

Cue Energy Resources Ltd (ASX: CUE) has advised a progress update during the drilling of the Naga Selatan-1 well. The well is located within the Mahakam Hilir PSC in the Kutei Basin, Indonesia. The well operator is SPC Mahakam Hilir Pte. Ltd.

The Naga Selatan (Southern Dragon) prospect is situated approximately 7.5km to the west of the producing Sanga-Sanga oilfield.

As of the 1st May 2012, the Naga Selatan-1 well was drilled to 1556 feet MD (measured depth) and wire-line logs were acquired. The logs are currently being evaluated. The 13 3/8 inch casing is being set at 1556 feet MD and the rig will then drill the 12 1/4 inch hole section.

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For further information, please contact:

Cue Energy Resources Ltd
T: +61 3 9670 8668
E: mail@cuenrg.com.au

Media/investor enquiries:

Luke Dean
Fortbridge
T: +612 9003 0477
M: +61 414 535 433
E: luke.dean@fortbridge.com