Cue Energy: Mahakam Hilir PSC operations update

(October 18, 2013) -- Cue Energy Resources Ltd (Cue) Advises that at 06:00 local time the Naga Utara-2 well is at a depth of 1,305 ft MDKB (398m).

Since the last report, a 16" pilot hole was drilled to the current TD and the hole diameter is currently being opened to 24" ahead of running and cementing the 185/8" casing.

The well site is located in the onshore portion of the Kutei Basin om the island of Kalimantan (Borneo), approximately 10 km NE of the town of Samarinda. Naga Utara-2 operated by SPC Mahakam Hilir Pte Ltd, a subsidiary of Singapure Petroleum Company Ltd.

The well is the third to be drilled by the Mahakam Hilir Joint Venture and will appraise the gas shows seen in Miocene-age sandstones at Naga Utara-1 which were not fully evaluated in the additional reservoir objectives. The well is being drilled from the same pad as Naga Utara-1 to a target location approximately 475m north of the earlier well. Naga Utara-2 has a proposed TD of 2,068mMD (1,981mTVD) and drilling is expected to take approximately 62 days.

Cue will provide weekly progress report during of Naga Utara-2. Participating interests in the Mahakam Hilir PSC are as follows:
Cue Mahakam Hilir Pty Ltd 40%
SPC Mahakam Hilir Pte Ltd 60% (operator) (ends)