Santos, partners starts to drill Oyong-2 well in Sampang PSC, E. Java

Australian oil and gas company Cue Energy Limited said Wednesday the Oyong-2 well in the Sampang production sharing contract (PSC) area offshore East Java was spudded on June 13, 2001.

According to the company?s release, Oyong-2 is located approximately 125 meters north of the Oyong-1 discovery well and is designed to appraise the gas (110 meters) and oil (22 meters) accumulations penetrated in the Oyong-1 well and to drill the deeper Wonocolo and Ngrayong primary objectives that could not be reached in Oyong-1.

The company said Oyong-1 had been suspended to allow future testing after pressure related drilling difficulties did not allow the well to be deepened past the current total depth of 1068 meters.

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