Cue to farm out Mahakam Hilir PSC

By Romel S. Gurky

ASX-listed Cue Energy Resources Ltd said it will be initiating a farm-out process in the second quarter (Q2) of this year to attempt to attract a joint venture partner to share the risks, costs, and benefits of the opportunity in the Mahakam Hilir PSC located in East Kalimantan.

Cue said in a statement last week that the analysis of the recent gravity Gradiometry data identified a gravity anomaly in the northern area of the permit adjacent to the nearby gas producing Sambutan field. A number of 2D seismic lines have been re- processed in the area of a 1930s well which has been interpreted to show significant gas reservoirs that were not tested or produced at the time.

The company said further analysis of the Naga Selatan-2 well information, gravity gradiometry and shallow coring results indicate lower prospectivity in the southern area of the permit.

Cue holds 100 percent equity and is operator of the Mahakam Hilir PSC.

Meanwhile, The Mahato PSC covers a highly prospective area, close to several large producing oil fields. Multiple appraisal and exploration opportunities have been mapped. The permit has a minimum work commitment of 1 well and 2D seismic acquisition by July 2018.

Cue said a Joint Operating Agreement has not been agreed by the joint venture participants, limiting any further progress in the permit.

Cue holds 12.5 percent percent equity and is operator of the Mahato PSC in Central Sumatra Basin.

Editing by Reiner Simanjuntak