Cue gets Mahakam Hilir contract extension

By Ruli Setiawan

ASX-listed Cue Energy Resources Ltd announced on Wednesday that SKK Migas had approved its proposal of four year extension for its exploration contract in Mahakam Hilir PSC, East Kalimantan, until May 2020.

The company said in a press release on Wednesday that the four year extension includes two contingent wells in the first two years, which Cue can elect to drill or withdraw from the PSC; and geological studies, pre-FEED studies and a Plan of Development in the next two years.

Cue, which has 100 percent equity and is operator of the Mahakam Hilir PSC, also announced that it successfully drilled the Naga Selatan-2 (NS-2) Exploration well and recovered oil and gas to surface.

While drilling the deeper section, gas was also flared to surface. The well was suspended to allow for future production testing.

Editing by Benget Besalicto ST