Cue Energy: Naga Utara-2 well to be plugged and abandoned

By Ruli Setiawan

ASX-listed Cue Energy Resources Ltd announced that operations are in progress to plug and abandon the Naga Utara-2 ST well in the Mahakam Hilir PSC on shore East Kalimantan as the hydrocarbon potential was deemed to be insufficient.

The company said that at 06:00 local time on 3 January 2014, the Naga Utara-2 ST well is at a depth of 6,060 ft MDKB (1,847m).

?Since the last report, the well was drilled to a total depth of 6,060 ft MDKB in 8?? hole. A suite of wireline logs was obtained which allowed for evaluation of the well; however the condition of the hole precluded further logging, including obtaining pressure data and fluid sampling by wireline tools. Although the well encountered indications of hydrocarbons, they were judged to be insufficient to warrant drill-stem testing,? it said in a statement.

?The data obtained from Naga Utara-2 and the subsequent sidetrack will be integrated into our understanding of the petroleum potential of the Mahakam Hilir PSC prior to a decision being made on future exploration activity,? Cue Energy added.

Cue Energy through its subsidiary Cue Mahakam Hilir Pty Ltd holds a 40 percent interest in the Mahakam Hilir PSC, while SPC Mahakam Hilir Pte Ltd holds a 60 percent interest as the operator.

Editing by Reiner Simanjuntak