Cue in talks with regulator for extension of Naga Utara work program

By Romel S. Gurky

ASX-listed Cue Energy Resources Limited announced Wednesday it has commenced discussions with the Indonesian regulator for an extension of the May 2018 well commitment for up to 1 year to allow analysis to be completed and the Naga Utara-4 well, Mahakam Hilir PSC in East Kalimantan Province to be planned.

?The Naga Utara-4 well, a twin to the Sambutan-8 well, is a promising appraisal opportunity of the greater Naga Utara structure, 300 meters from the producing Sambutan Gas Field,? Cue said in a statement.

Cue said it has also held discussions with multiple potential farm-in partners with a view to forming a Joint Venture to fund the Naga Utara-4 appraisal well.

Cue holds 100 percent equity and is operator of the Mahakam Hilir PSC.

In the Mahato PSC, Central Sumatra, Cue said that progress is being made between the partners towards signing as legally binding Operating Agreement. Land has been acquired and permits are in place to enable the drilling of a well in the Petapahan area in the first-half of 2018.

The block operator is also discussing a potential extension to the exploration period of the permit with the Indonesian regulator, Cue said.

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 July 2018.

Texcal Mahato EP holds 62.5 percent as the operator in Mahato PSC, Cue Energy Resources Ltd holds a 12.5 percent interest, and the remaining 25 percent interest is held by Bukit Energy Central Sumatra (Mahato) Pte.

Editing by Reiner Simanjuntak