Cue Energy starts drilling Northern Territory PV14 well

·       Cue Energy Resources started drilling the PV14 appraisal well in the Northern Territory.

·       Cue Energy shares remained unchanged at $0.11 following the announcement.

·       The campaign aims to double field production and boost local gas supply.

Cue Energy Resources (ASX:CUE) has commenced drilling the PV14 appraisal well in the Northern Territory.

The four-and-a-half-month campaign targets first gas sales from the field by October.

"The drilling programme has the potential to more than double current field production," said Cue Energy CEO Matthew Boyall.

Central Petroleum (ASX:CTP) stated that the two-well campaign aims to restore sales capacity to 14 terajoules daily.

Following the announcement, the Cue Energy share price was unchanged at $0.11, while the share price for Central Petroleum was $0.070.

Cue holds a 15% participating interest in the Palm Valley permit OL3 in Central Australia.

The investment is supported by a gas supply agreement signed with the Northern Territory Government in April.