Cue Energy reports Indonesian operations
Friday, January 22 2016 - 05:39 AM WIB
Exploration
Mahakam Hilir PSC Kutei Basin Cue Interest: 100%
Operator: Cue Kalimantan Pte Ltd
Cue holds a 100% interest in, and is the operator of, the Mahakam Hilir PSC in the prolific Kutei Basin onshore Kalimantan.
The Naga Selatan 2 well spudded on 7 January 2016 after the successful and LTI free construction of the drilling pad and access roads. The well is expected to take ~2-3 weeks depending on the drilling results.
Extensive field mapping in the block helped identify a final location for the Naga Selatan-2 well. Field geologists identified several active oil seeps during their work and this critical information was used in updating the structural interpretation of the prospect and selecting a drill location which is very close to an active seep. Regional work also established the near-by Sanga Sanga oilfield as an analogy to the trap type that Cue is pursuing. If the drilling successfully calibrates our prospect model, Cue plans to suspend the well as a future producer and carry out a production test in 2016.
Mahato PSC
Central Sumatra Basin Cue Interest: 12.5%
Operator: Texcal Mahato Ltd
The Mahato PSC covers a highly prospective area close to several large producing oil fields. Multiple appraisal and exploration opportunities have been mapped and at least 1 well is currently planned for 2016/17. A 2D seismic programme to high grade further exploration prospects is also planned for 2016.
Production
Sampang PSC- Madura Strait Cue Interest: 15%
Operator: Santos (Sampang) Pty Ltd
Oyong Field
During the quarter Cue?s share of condensate sales receipts was $2,451 from the sale of 66 barrels and gas sales receipts was $2.64 million from the sale of 279.2 mmcf.
The Oyong average oil production rate for the quarter was 1,109 bopd (gross) and the daily gas average rate was 26.6 mmcfd (gross) (Cue net: 140 bopd and 3.3 mmcfd - both net of government take under the PSC).
The Sampang PSC combined production from Oyong and Wortel is ~1100 bopd and ~75- mmcf/day. Oyong is also now benefitting from an amendment to the existing gas contract, which
included a significant price increase and became effective in July. Oyong maintains an average rate of 30-35 mmcfgd produced as associated gas from the oil producing wells and also non-associated gas from Oyong 6 and Oyong-10 which are completed in the gas cap. Studies are currently underway to extend field gas production from Oyong and Wortel.
Wortel Field
During the quarter Cue?s share of gas sales receipts was $6.63 million from the sale of 721.9 mmcf. Cue?s share of condensate sales from the Wortel field was 116 barrels which generated $4,256 in revenue.
Wortel-3 and Wortel-4 flowed gas at a combined average daily rate of 42.8 mmcfd (gross) during the quarter (Cue net 5.94 mmcfd net of government take under the PSC.)
Installation of onshore gas compression at the Grati gas plant has now been completed and all three compressors are fully functional. Compression capacity has resulted in increased deliverability from Wortel to 45 mmcfg/d. This will also help maintain gas production from Oyong and Wortel and studies are underway to extend the combined fields? gas production from Oyong and Wortel. (end of excerpt)