Cue Energy reports Indonesian operations
Thursday, October 27 2016 - 02:58 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. A four year extension to the exploration phase of the Mahakam Hilir PSC was received in May 2016. The extension includes 2 contingent wells in the first 2 years, in which Cue can elect to drill or withdraw from the PSC or continue for the following 2 years with the wells as firm commitments.
Analysis of the Naga Selatan-2 discovery is continuing, focusing on estimating flow potential for oil and gas from both matrix and fracture porosity. Several data collection initiatives are underway focused on delineating areas of optimal reservoir quality and fractures for potential appraisal locations. These include: airborne gravity data, high resolution topographic relief (LIDAR) data, extensive field mapping and shallow coring. This information is critical in making resource assessment estimates and planning for any future appraisal drilling of the Naga Selatan resource. Further drilling is required for the project to move forward towards development. The company will also consider future testing of the suspended NS-2 well pending results of our studies and considered in conjunction with future plans for drilling.
Given the Company holds 100% working interest, a suitable industry partner(s) will likely be sought in H1, calendar 2017 to help fund the appraisal programme of the Naga Selatan opportunity.
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. The permit has a minimum work commitment of 1 well and 2D seismic acquisition by May 2018. (end of excerpt)