Cue Energy plans to drill three wells this year

By Romel S. Gurky

ASX-listed Cue Energy Resources Limited plans to drill one well in the Mahakam Hilir PSC in East Kalimantan and two wells in Mahato PSC in central Sumatra.

Cue has identified a robust drill-ready oil prospect, Naga Selatan -2 (Southern Dragon) in Mahakam Hilir PSC which has encouraged Cue to move to a 100 percent interest in the permit, the firm said in a statement Wednesday.

This oil prospect lies along trend from the large Sei Nangka and South Pelarang oil fields. The multiple targets are shallow, located at approximately 1000?-3000? TVD. Additional exploration objectives have also been identified on the existing seismic data.

Drilling program preparations have commenced and the well is planned for 2015.

?This marks Cue?s first entry as a drilling operator. This acquisition complements the continuing expansion of our Indonesian acreage portfolio,? the firm said.

Cue has entered into, subject to government approvals, a sale and purchase agreement to move to 100 percent interest in the Mahakam Hilir PSC in the prolific Kutei Basin onshore Kalimantan.

Cue will purchase SPC Mahakam Hilir Pte Ltd, which holds the remaining 60 percent interest in the Mahakam Hilir PSC. Cue will assume operatorship with a 100 percent interest in the PSC and drill the remaining commitment well in the PSC.

Elsewhere, the Mahato PSC covers a highly prospective area, close to several large producing oil fields. Multiple appraisal and exploration opportunities have been mapped and 2 wells are currently planned for mid 2015. A 2D seismic programme to high grade further exploration prospects is also planned for 2015

On November 21, 2014, Cue announced the execution of a farm-in agreement with Bukit Energy to acquire a 12.5 percent interest in the Mahato PSC, onshore Central Sumatra. This transaction is currently pending Indonesian Government approval, which is expected this quarter.

Editing by Johannes Simbolon