Cue Energy reports Indonesian operation
Thursday, September 30 2010 - 05:21 AM WIB
Production
Cue?s share of oil production for the financial year was 188,101 barrels (2009: 197,601 barrels). The field production volume exceeded that forecast due to better than expected reservoir performance.
Gas production began from the field in October 2009 and by 30 June 2010 Cue?s share of gas produced was 2.12 billion cubic feet. The gas is being sold under a long term contract to the PT Indonesia Power electricity generating station at Grati.
These reserves are consistent with SPE guidelines and definitions.
Oil Production between 31 December 2009 and 30 June 2010 was 524,460 barrels. Remaining to be produced at 30 June 2010 was 1.876 million barrels (2P) with Cue?s share being 0.244 million barrels (2P).
Gas Production between 31 December 2009 and 30 June 2010 was 10.587 BCF. Remaining to be produced gas at 30 June 2010 was 87.4 BCF with Cue?s share being 11.4 BCF (2P).
Development
Front end engineering and design studies for the Wortel gas field were completed during the year. The development plan envisages a small well head platform on the field with two gas production wells and a seven kilometre pipeline to the Oyong facilities, with subsequent gas transportation through the existing pipeline to Grati.
Negotiations for the sale of Wortel gas are proceeding and a field development decision is expected in October 2010, with first gas production in late 2011.
Wortel is currently assessed to contain recoverable gas volumes of 85 118 146 billion cubic feet in low, mid and high side cases.
Review of Operations
Cue?s net share of oil production from the Oyong field for the year was 188,101 barrels (2009: 197,601 barrels)
Gas production from the Oyong field began on 1 October 2009 and net production to 30 June 2010 was 2.12 billion cubic feet of gas.
Front end engineering and design studies and gas sale negotiations for the Wortel gas field began during the year and were ongoing at year end. (end of excerpt)