Oyong-1 well in Sampang PSC flows oil

Australian listed oil and gas company Cue Energy Limited reported Tuesday that Oyong-1 well in Sampang production sharing contract (PSC) area offshore East Java had flowed oil from the first of two drill stem tests to be conducted in the well.

Cue said the well flowed 762 barrels of 41.9 degree API oil per day accompanied by 1.22 million cubic feet of gas per day during the initial flow period.

Cue said Oyong-1 encountered a 110 meters gas column overlying an approximately 35-40 meters oil column.

According to Cue, the forward plan is to continue the test of the oil interval and to then test the overlying gas column.

On completion of testing, Oyong-1 will be suspended for potential future production. Another well, Oyong-2, had also been suspended for future production.

After completion of testing Oyong-1, the drilling rig would move to drill Anggur-3 well on the Anggur structure, which Cue said had the potential to contain in excess of 100 million barrels of recoverable oil.

The Oyong wells are located approximately 80 kilometers east of Surabaya in 44 meters of water. The Anggur structure is located approximately 40 kilometers east of Surabaya in 17 meters of water.

Australian biggest oil, gas company Santos Limited is the operator of Sampang PSC with 45 percent working interest, while Coastal Indonesia Sampang Ltd and Cue holds 30 percent and 15 percent working interest, respectively. (alex)