Cue says Wortel gas field to come onstream in Q3 2011

Australian oil, gas firm Cue Energy Resources Limited said that it and partners are expected to start first gas production from Wortel gas field in Sampang PSC offshore East Java in the third quarter of 2011.

In an earlier statement the company said that the gas field would start first gas production at the end of 2010 or early 2011.

Estimated capital expenditure to develop the Wortel gas field is US$100 million, Cue said in its presentation material on Thursday.

The company said PoD for the field is still waiting for approval from upstream oil, gas regulator BPMIGAS, without giving a timeline.

Wortel has recoverable reserves of between 60-130BCF, Cue said in Nov 2008.

Under the plan, development would consist of a well head platform on the field, with two deviated development wells, and a pipeline to the Oyong facilities, 7kms to the east.

The block operator, Santos Limited said in February 2008 that Wortel discovery would be able to produce gas at the rate of 40-60 MMCFD. (denny)