Melbourne, Aug 29, 2008 (ABN Newswire) - Cue Energy Resources Limited (ASX:CUE)(PNK:CUEYF) is pleased to advise that it has acquired a 20% interest in Petroleum Exploration Permit 38494 in the southern Taranaki Basin, offshore New Zealand. Under a farm-in agreement with the operator of the permit, Todd Exploration, Cue will earn its interest in the block by funding 30% of the cost of drilling the Matariki-1 well.

PEP 38494 is situated 50 km from the New Zealand coast, is 5341 sq km in area and lies in 70-100m of water. The prospects and leads inventory for the permit includes the Matariki prospect and the Paua and Pike leads.

Matariki-1 will be the first well drilled in the current permit term. The prospect is a four-way dip closure with exploration objectives identified at several levels that are similar to those that have been shown to be hydrocarbon bearing at the Maari Field. Matariki is located on the Tasman Ridge 22km south of the Maari oil Field. It has the potential to contain approximately 100 MMstb recoverable oil resource and is planned to be drilled utilizing the Ensco 107 jack-up rig sometime during the second half of 2009 after completion of the Maari development drilling program and the Manaia appraisal well.

Participation in permit PEP 38494 provides Cue with the opportunity to build on its current involvement in the Maari Field. Exploration of the adjacent acreage has clear technical, commercial and operational synergies with the current field development.