Cue increases interest in Mahakam Hilir PSC to 100%
Tuesday, October 21 2014 - 12:54 AM WIB
Reversing an earlier plan, ASX-listed Cue Energy Resources Ltd said on Tuesday that it has agreed to acquire a 100 percent interest in the Mahakam Hilir PSC on shore East Kalimantan.
Cue, which already holds 40 percent interest in the PSC, will purchase SPC Mahakam Hilir Pte Ltd, which holds the remaining 60 percent interest in the Mahakam Hilir PSC, the company said in a statement
It added that under a sale and purchase agreement with SPC E&P Pte Ltd. Cue will assume operatorship and drill the remaining commitment well in the PSC.
?As part of an internal review of the permit Cue has identified and is excited by a robust drill-ready oil prospect within the prospect inventory, the Naga Selatan -2 (Southern Dragon) which has encouraged Cue to move to a 100 percent interest in the permit. Cue may look to farmdown at an appropriate time,? the company said.
?This oil prospect lies along trend of the large Sei Nangka and South Pelarang oil fields. The multiple targets are shallow, located at approximately 1000-1800 TVD. Additional exploration objectives have also been identified on the existing seismic data,? it added.
Cue said drilling program preparations have commenced with a view to drilling in 2015.
In April of this year, Cue and joint venture partner SPC Mahakam Hilir PSC announced plan to farmout their interests in the Mahakam Hilir block after appraisal/exploration of the Naga Utara-2 well earlier in the year found insufficient hydrocarbon potential.
Elsewhere, Cue said the onshore Mahakam Hilir PSC aligns with the company?s objectives to acquire high quality exploration and appraisal opportunities within our South East Asian focus area, and marks Cue's first entry as a drilling operator.
Cue said that the name of the operator of the Mahakam Hilir PSC will be changed upon completion of the acquisition transaction.
Editing by Reiner Simanjuntak