Cue Energy to ramp up production at Sampang PSC

ASX-listed energy company Cue Energy Resources Ltd (CUE) said it is in the process of developing the Wortel gas discovery, one of three fields of the Sampang PSC, which will help increase gas and oil production of the block.

The company said two horizontal wells will be drilled in the Wortel field, a small well head platform installed and a pipeline will be laid to connect Wortel to Oyong for gas sales via the Oyong pipeline to Grati.

In addition a further horizontal oil production well will be drilled in the Oyong field.

?This development is expected to lift total production to approximately 90 MMSCF of gas and 3,500 bopd from January 2012. The proven plus probable gas reserves of the Wortel field estimated by Santos at the end of 2010 were 103.6 Billion cubic feet (Bcf),? the company said.

The Sampang PSC is located offshore at south of Madura island, Indonesia. The PSC has three fields -- Oyong, Wortel and Jeruk.

The Oyong Field is located at 41 meters water depth with the reservoir being at a depth of approximately 750 meters.

The field initially contained an oil column of 38 meters overlain by a gas cap of approximately 110 meters

The development currently consists of 5 horizontal oil production wells and 2 vertical gas producers with a wellhead platform and Floating Production Storage and Offloading (FPSO) and Floating Storage and Offtake (FSO) vessels moored adjacent to the platform.

Oil production commenced in September 2007 with first commercial gas sales made in September 2009.

The gas is exported via pipeline to the Grati power station onshore Java. Production during the three months to September 2011 averaged approximately 2,500 barrels of oil per day (bopd) and 60 MMSCFD. (romel/ruly)