Gas shows reported at ?Mangga 1?

Australian oil company Cue Energy Limited reported ?good? gas shows was encountered at the interval of 1,342 meters-1367 meters at Mangga 1 well in sampang PSC offshore East Java. Cue reported that drilling currently reached 1,633 meters and circulating prior to the proposed total depth of 1,750 meters.

Mangga 1 was spudded on September 27.

?A number og other hydrocarbon shows have been encountered below this zone. The significance of all shows will be determined when wireline logs are run at total depth,? said the company in a statement released to the Australian Stock Exchange Wednesday.

Mangga 1 is located approximately 35 kilometers west of the Oyong field, where significant gas reserves had been discovered earlier.

Prior to the drilling, Mangga is assessed to have the potential to contain approximately 110 billion cubic feet of recoverable gas (P50 case) up to a high side case of approximately 320 billion cubic feet of recoverable gas.

Cue has 15 percent working interest in sampang PSC. Santos Limited is the block?s operator and 45 percent interest holder. Other participant is Coastal Indonesia Sampang with 40 percent working interest. (alex)