Cue Energy reports Indonesian operations

The following is an edited excerpt from Australian energy firm Cue Energy Resources? half yearly report for the financial period ended 31 December 2011 released on Tuesday.

Sampang PSC- Madura Strait (15% interest)
Operator: Santos

Oyong Field
Oil production was lower due to production shutdowns associated with tying in the Wortel field. Cue?s share of oil sales was 12.439 barrels of oil which generated A$l. 4m in revenue.

Cue?s share of gas sales was 1,183,719 MCF which generated A$3. I m in revenue during the half year.

On 8th January the COSL Boss drilling rig completed the Wortel development drilling and moved over the Oyong wellhead platform to drill the Oyong 11 infill production well.

Wortel Field
The Wortel gas field development is complete. The Wortel-3 . and Wortel-4 development wells were drilled and completed with the COSL Boss jackup drilling rig. Drilling was successfully completed on 8th January. The subsea pipeline connecting the Wortel and Oyong wellhead platforms was commissioned. The construction and recommissioning of the platform topsides were completed in the fabrication yard and transported to the site on 12th January. These were successfully installed on the 14th January. Hook-up and commissioning work is complete and first gas production commenced in late January. Wortel production to be gradually brought up to full rate over February.

The combined Oyong and Wortel gas production rate is expected to be around 90 mmscf/d for the projects for the rest of the financial year

Mahakam Hilir PSC (40% interest)
Operator: Singapore Petroleum

Naga Utara & Naga Selatan
Drilling of the first of two exploration wells called Naga Utara (Northern Dragon) began on 4 January 2012 and Naga Selatan (Southern Dragon) will follow.

At the date of this report the Naga Utara well has drilled to a depth of 4,887 ft MD. Multiple hydrocarbons shows were encountered between 3,070 ft MD and 4,780 ft MD and a high-pressure gas zone was encountered between 4,780 and 4,887 ft MD. The drill pipe became stuck and a cement plug was set. The well is currently being sidetracked to drill and log hydrocarbons previously intersected. It is proposed to drill to a total depth of 5.500 ft MD.(end of excerpt)