Cue: Analysis of Naga Selatan-2 discovery in progress

By Romel S. Gurky

ASX-listed Cue Energy Resources Ltd said on Wednesday that analysis of the Naga Selatan-2 discovery in Mahakam Hilir PSC, East Kalimantan, is continuing and several data collection initiatives are underway to fully assess the results.

?These include airborne gravity data, high resolution topographic relief (LIDAR) data, extensive field mapping and shallow coring. This information will assist in making new resource assessment estimates and planning for any future appraisal of Naga Selatan-2,? Cue said in a quarterly report.

Cue holds 100 percent interest in the Mahakam Hilir PSC. The company early in February announced the discovery of the Naga Selatan-2 well.

Elsewhere, Cue reiterated that a four year extension to the exploration phase of the Mahakam Hilir PSC was received during the quarter. The extension includes two contingent wells in the first two years, which Cue can elect to drill or withdraw from the PSC.

Meanwhile, Cue said it is limiting its exploration expenditure on the Mahato PSC, Central Sumatra Basin until the company?s legal rights are protected.

The Mahato PSC covers a highly prospective area close to several large producing oil fields and multiple appraisal and exploration opportunities have been mapped.

However there has not been a legally binding agreement governing the Mahato PSC Joint Venture arrangements since the license was granted in 2012, Cue said.

The company holds a12.5 percent interest in Mahato PSC, Texcal Mahato EP holds 62.5 percent as the operator, and the remaining 25 percent interest is held by Bukit Energy Central Sumatra (Mahato) Pte.

Editing by Reiner Simanjuntak