Cue Energy: Naga Utara-2 well spudded on Oct 5

By Ruli Setiawan

ASX-listed Cue Energy Resources Ltd (Cue) announced that the Naga Utara-2 well, located in the Mahakam Hilir PSC on shore East Kalimantan, had been spudded on October 5, 2013.

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 company said in a statement received on Monday.

The well will then be deepened to evaluate additional reservoir objectives, the statement said. ?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 (1,981 mTVD) and drilling is expected to take approximately 62 days,? it said.

SPC Mahakam holds 60 percent interest in the project, with Cue?s unit, Cue Mahakam Hilir Pty Ltd holding the balance.

Editing by Reiner Simanjuntak