Cue says good gas shows encountered in Sampang PSC, E. Java

Australian oil and gas company Cue Energy Resources Limited announced Tuesday that at on 25th June 2001 the Oyong-2 well in the Sampang production sharing contract (PSC) area offshore East Java, was at 906 meters and preparing to cut the first of three cores.

The company said the top of the Mundu limestone was penetrated at 850 meters, 33 meters high to prediction. Good gas shows were encountered from 850 meters to the current depth of 906 meters. The 16" casing was set at 650 meters.

Oyong-2 is located approximately 125 meters north of the Oyong-1 discovery well and is designed to appraise the gas (110 meters) and oil (22 meters) accumulations penetrated in the Oyong-1 well and to drill the deeper Wonocolo and Ngrayong primary objectives that could not be reached in Oyong-1.

Cue said the well was programmed to a total depth of 2280 meters with drilling expected to take 30 days.

Oyong-2 is an additional well to the original approved work program and budget and will require Cue paying approximately an additional US$1 million.

Australian oil and gas company Santos (Sampang) Pty Ltd holds 45 percent interest and operatorship in Sampang PSC, while Coastal Indonesia Sampang Ltd and Cue Energy hold 40 percent and 15 percent, respectively. (alex)