The facility is for $US20 million ($A23.6 million) with BOS International, a part of the Bank of Scotland’s global oil and gas business.

Cue said it expected the facility would cover the company’s remaining costs, including contingencies, associated with its share of the development costs of the Maari project, up to completion.

“The project development is progressing well, with first oil expected during the

third quarter of 2008,” Cue managing director Bob Coppin said.

The Maari area has proven and probable (2P) reserves of about 50 million barrels, with Cue’s share being 2.5MMbbl, and the area’s upside could be another 10-20MMbbl (Cue’s share being 500,000bbl to 1MMbbl), according to Coppin.

A floating processing, storage and offtake vessel was currently being modified and first oil was expected next year, with initial production expected to be about 35,000 barrels per day (Cue 1750bpd).

Maari is operated by Austrian major OMV.

Participants in the project are OMV New Zealand with a 69% stake, Todd Energy (16%), Horizon Oil (10%) and Cue Energy Resources (5%).