Cue Energy takes over ownership, operatorship of Mahakam Hilir PSC
Thursday, February 26 2015 - 09:35 AM WIB
ASX-listed Cue Energy Resources Ltd. has entered into a sale and purchase agreement with SPC to move to 100% interest in the Mahakam Hilir PSC in the prolific Kutei Basin onshore East Kalimantan.
Cue will purchase SPC Mahakam Hilir Pte Ltd, which holds the remaining 60% interest in the Mahakam Hilir PSC. Cue will assume operatorship with a 100% interest in the PSC and drill the remaining commitment well in the PSC. Government approval for the transfer has been received.
As part of an internal review of options around the permit Cue has identified a robust drill-ready oil prospect, Naga Selatan -2 (Southern Dragon) which has encouraged Cue to remain in the permit and move to a 100% interest.
This oil prospect lies along trend from the large Sei Nangka and South Pelarang oil fields. The multiple targets are shallow, located at approximately 1000?-3000? TVD. Additional exploration objectives have also been identified on the existing seismic data.
Drilling program preparations have commenced and the well is planned for 2015. This marks Cue?s first entry as a drilling operator. This acquisition complements the continuing expansion of our Indonesian acreage portfolio.
The block is near several major oil fields, (including Minas and Duri) and has a deep portfolio of exploration and appraisal prospects.
Seismic processing and planning for the drilling of the Naga Selatan -2 well in the Mahakam Hilir PSC (100% Cue ? subject to completion) has progre ssed during the half-year with drilling planned for Q3 2015.
A farm-in for 12.5% of the Mahato PSC in the prolific Central Sumatra Basin in Indonesia was concluded (subject to government approval) with 2 wells planned for 2015 along with 2D seismic acquisition. The block is near several major oil fields, (including Minas and Duri) and has a deep portfolio of exploration and appraisal prospects.
On November 21, 2014, Cue announced the execution of a farm-in agreement with Bukit Energy to acquire a 12.5% interest in the Mahato PSC, onshore Central Sumatra, Indonesia. This transaction is currently pending Indonesian government approval, which is expected this quarter.
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 mid 2015. A 2D seismic program to high grade further exploration prospects is also planned for 2015.
Editing by Johannes Simbolon