Drilling update: Oyong-2 well, Sampang PSC, E. Java

Australian listed oil and gas company Cue Energy Resources Limited announced Tuesday that on July 134, 2001, a 9(5/8): liner had been run and cemented at 1498 metres and preparations were underway to drill ahead in Oyong-2 well in Sampang production sharing contract (PSC) area offshore East Java.

The company said the forward plan is to drill an 8(1/2)" hole to the planned total depth of 2260 metres.

According to the company, at that time hydrocarbons encountered will be evaluated, including flow testing the oil and gas columns already encountered in carbonates of the Mundu Formation.

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

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