Cue seeks to limit production declines

By Romel S. Gurky

ASX-listed Cue Energy Resources Ltd said Wednesday it is working with its joint venture partners to limit production declines within the existing producing fields in Indonesia.

The company, however, did not provide further details about these efforts. Cue has producing assets in Indonesia via the Sampang PSC in the Madura Strait, East Java. It is composed of two producing fields: Oyong oil and gas field and Wortel gas field. The Jeruk discovery has yet to be developed.

Cue has a 15 percent interest in the PSC, while Singapore Petroleum Company holds a 40 percent interest and Santos with a 45 percent interest.

Cue said in a statement that it is also looking to progress attractive growth opportunities in offshore New Zealand and Indonesia.

In further updates of its other Indonesian assets, Cue said there has not been a legally binding agreement governing the Mahato PSC Joint Venture arrangements since the license was granted in 2012. ?Cue will therefore limit its exploration expenditure on this license until the company?s legal rights are protected,? it said. The block located in Central Sumatra Basin, Cue has a 12.5 percent interest in the block.

Elsewhere, Cue said the oil and gas discovery earlier this year in itss 100 percent owned Mahakam Hilir Production Sharing Contract (PSC) in onshore Indonesia proved the play and significantly de-risked the acreage. ?Additional geology and geophysics activities are planned in the third quarter of 2016 to enable an estimate of prospect volumes and more informed decisions on exploration and development activities in the block,? it said.

Cue last month announced that upstream oil and gas authority SKK Migas had approved its proposal of four year extension for its exploration contract in Mahakam Hilir PSC, East Kalimantan, until May 2020.

The company also announced that it successfully drilled the Naga Selatan-2 (NS-2) exploration well and recovered oil and gas to surface.

Editing by Reiner Simanjuntak