Cue confirms Mangga-1 discovery uneconomic

Australian oil, gas company Cue energy resources limited on Tuesday said Mangga-1 exploration well in Sampang PSC offshore East Java had been plugged and abandoned following non-commercial hydrocarbon discovery.

Cue said the well encountered 12 meters gas zone in good quality reservoir rock at the top of Mundu Formation objective, but after reaching a depth of 1633 meters, unsuccessful attempts were made to evaluate several hydrocarbon shows beneath the top Mundu gas column.

Elpaso, Sampang PSC participant with 40 percent interest, then decided to conduct further evaluation at sole risk basis after two other participants, operator Santos Limited and Cue declined to join.

?Following obtaining pressure data and samples using a drill pipe-conveyed tooland confirming the top Mundu gas zone, the well was deepened to 1663 meters. A production test of the zone from 1560 meters to 1663 meters recovered 33 degree API oil at small non-commercial rate,? said Cue in a statement. (alex)