Planning for drilling the Naga Utara-2 appraisal well underway

By Ruli Setiawan

ASX-listed Cue Energy Resources Ltd and operator SPC Mahakam Hilir Pte Ltd are in the final preparation for drilling at the Naga Utara-2 well within the Mahakam Hilir PSC, Kutei basin, East Kalimantan which is expected to spud in the third quarter 2013.

Cue said in a quarterly report on Tuesday that the program will evaluate the Naga Utara-1 gas discovery (drilled in the first quarter 2012) and will have the key objectives of acquiring information on potential flow rates, pay thickness and gas quality to fully characterize the resource.

Following the gathering of additional data from the gas-bearing reservoirs seen in Naga Utara-1, the well will be deepened to intersect potential gas-bearing intervals below the known pay.

Cue, through subsidiary Cue Mahakam Hilir Pty Ltd holds a 40 percent interest in the Mahakam Hilir PSC of the Kutei basin, onshore East Kalimantan. The other 60 percent interest is owned by SPC Mahakam Hilir Pte Ltd. as the operator of the block.

Editing by Dadan Wijaksana