Cue Energy reports Indonesian operations
Thursday, October 22 2015 - 12:50 AM WIB
Production
Sampang PSC, Madura Strait (15%)
Oyong Field
During the quarter Cue?s share of condensate sales receipts was $1,237 from the sale of 27 barrels and gas sales receipts was $1.86 million from the sale of 237.33 mmcf. Cue did not lift any Oyong oil in the quarter.
The Oyong average oil production rate for the quarter was 1,256 bopd (gross) and the daily gas average rate was 24.37 mmcf (gross) (Cue net: 162 bopd and 2.99 mmcf - both net of government take under the PSC).
The Sampang PSC well workover programme to increase production and extend field life has concluded and Oyong is now averaging 1300 bopd. Oyong is also now benefitting from an amendment to the existing gas contract, which included a significant price increase and became effective in July. The field maintains an average rate of 30mmcfgd primarily produced as associated gas from the oil producing wells.
Wortel Field
During the quarter Cue?s share of gas sales receipts was $3.97 million from the sale of 431.87 mmcf. Cue?s share of condensate sales from the Wortel field was 40 barrels which generated $1,769 in revenue.
Wortel-3 and Wortel-4 flowed gas at a combined average daily rate of 38.27 mmcf (gross) during the quarter (Cue net 5.31 mmcf net of government take under the PSC.)
Installation of onshore gas compression at the Grati gas plant has also now been completed and all three compressors are fully functional. Compression capacity has resulted in increased deliverability from Wortel to 45mmcfg/d. This will also help maintain gas production from Oyong and Wortel and extend field life.
Exploration
Mahakam Hilir PSC, Kutei Basin (100%)
Cue now holds a 100% interest in, and is the operator of, the Mahakam Hilir PSC in the prolific Kutei Basin onshore Kalimantan.
Naga Selatan 2 well planning is progressing, with construction of the drilling pad and access roads now underway. The technical work on the prospect is complete and a final well proposal will soon be submitted to SKKMIGAS for approval to drill in early January 2016. Signing of a firm rig contract is imminent and all relevant remaining tenders are almost complete.
Extensive field mapping in the block has helped identify a final location for the Naga Selatan-2 well. Field geologists have identified several active oil seeps during their work and this critical information has been used in updating the structural interpretation of the prospect and selecting an initial drill location which is very close to an active seep. Regional work has also established the near-by Sanga Sanga oilfield as an analogy to the trap type that Cue are pursuing. Cue plans to suspend the well as a future producer and carry out a production test in 2016 if the drilling successfully calibrates our prospect model.
Mahato PSC, Central Sumatra Basin (12.5%)
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 2016. A 2D seismic programme to high grade further exploration prospects is also planned for late 2015/early 2016. (end of excerpt)