Cue identifies appraisal well opportunity in Naga Utara prospect
Thursday, September 28 2017 - 05:16 AM WIB
ASX-listed Cue Energy Resources Limited said Thursday that field work and data acquisition in Mahakam Hilir PSC, East Kalimantan, has been completed, resulting in a positive review of the prospectively in the Naga Utara prospect, adjacent to the producing Sambutan gas field.
Cue said in a statement that Gravity Gradiometry data collection and analysis revealed a gravity anomaly in the northern area of the permit, which aligns with the location of the Sambutan field. This feature was previously unnoticeable on the available seismic data and renewed Cue?s technical interest in the Naga Utara prospect area.
?Reprocessing of existing seismic data has provided a clearer understanding of why the Naga Utara 1 and 2 wells, drilled in 2012/2013 did not discover commercial quantities of hydrocarbons,? the company said.
Cue said it has also received an additional 9 lines of seismic data which ties the well data from the neighboring Sambutan field through the Naga Utara prospect and allows correlation of the gas bearing sands.
Additional fieldwork undertaken has uncovered the locations and logs of wells drilled in the 1930s including Sambutan-8, which lies within the Mahakam Hilir PSC and contains valuable log data showing interpreted gas sands over a 100m interval that has never been tested or produced from.
Cue said it is currently planning for an appraisal well to assess the reservoirs shown in the Sambutan-8 well.
?To allow further time to integrate all new data, confirm the prospectivity of the Naga Utara prospect and plan for a potential well, Cue has initiated discussions with the Indonesian Government for a variation to the 2 well work program which is currently due by May 2018,? the company said.
After a negative outcome from further analysis of the results of the Naga Selatan-2 well in January 2016, Cue has decided to plug and abandon the well.
Cue said it has also commenced a farmout process to attract a partner to participate in the permit. Cue holds 100 percent equity and is operator of the Mahakam Hilir PSC.
Editing by Reiner Simanjuntak