Cue issues Santos? latest estimate on Oyong recoverable oil, gas

Australian oil, gas firm Cue Energy limited said on Monday that Santos Limited?s interim analysis had suggested that recoverable oil and gas from Oyong field in Sampang PSC offshore East Java to reach 10 million barrels and 103 BCF.

?Interim analysis by Santos Limited, operator of Oyong field, suggests that the recoverable oil volumes in the field are now likely to be in the range of 3-6-10 million barrels in low, mid and highside cases and that recoverable gas volumes are likely to be in the range of 80-97-103 BCF in low, mid and highside cases,? Cue said in a quarterly report.

Oyong is scheduled to commence oil production in June this year, with production of around 10,000 BPD, while gas production is scheduled to commence in 2008.

Meanwhile, the company also said that Jeruk-3 well will be drilled mid-2007, immediately to the east of Wortel-1 to establish the full potential of Wortel accumulation.

?The close proximity of Wortel to Oyong allows the possibility of developing Wortel gas through Oyong facilities,? the company said. Wortel-1 exploration well flowed gas at a rate of 18.5 MMCFD in a drill stem test in September 2006, with gas column thickness of 141 meters.

Santos is the operator of Sampang PSC with 40.5 percent interest, while Cue is holding 13.5 percent. (alex)