Approval received for farm-in to Mahato PSC: Cue Energy
Thursday, March 26 2015 - 12:51 AM WIB
ASX-listed Cue Energy Resources Limited announced Thursday receipt of Indonesian government approval for the farm-in agreement with Bukit Energy Central Sumatra (Mahato) Pte Ltd (Bukit) to acquire a 12.5 percent participating interest in the Mahato Production Sharing Contract (PSC) onshore Central Sumatra.
The 5,600 sq km Mahato PSC is located in a highly prospective area in the prolific Central Sumatra basin close to several producing oilfields, including Indonesia?s largest onshore oil fields; the Minas oil field(over 5 billion barrels) and the Duri oil field (over 3 billion barrels). The block contains multiple appraisal and exploration drilling opportunities with two wells currently planned for second half 2015.
The 2015 work plan includes an appraisal well delineating the possible extension of the Petapahan field into Mahato PSC, a subsequent exploration well nearby and seismic acquisition to further high grade exploration prospects for future drilling. As part of the farm-in, Cue?s share of costs for the two wells and seismic is capped by Bukit.
The company said it is currently seeking additional exploration and production opportunities in Indonesia.
The Mahato PSC is surrounded by existing infrastructure which is expected to result in a reduced cycle time to development of any discoveries.
Editing by Reiner Simanjuntak