Cue Energy: Mahakam Hilir PSC operations update

(November 22, 2013) -- Cue Energy Resources Ltd (Cue) advises that at 06:00 local time on 22 November 2013 , the Naga Utara-2 well is at a depth of 4,921 ft MDKB (1,500m). Currently the 9⅝? casing is being set.

Since the last report, 12?? hole was drilled to the section TD at 4,921 ft MDKB (1,500m) and wireline logs were obtained as per the well plan prior to the 9⅝? casing being run. Progress for the week was 525ft (160m).

The well site is located in the onshore portion of the Kutei Basin on the island of Kalimantan ( Borneo ), approximately 10 km NE of the town of Samarinda (map attached). Naga Utara-2 is operated by SPC Mahakam Hilir Pte Ltd, a subsidiary of Singapore 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 previous well due to mechanical problems. The well will then be deepened to evaluate 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 reports during the drilling 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)