Santos, partners strike more oil, gas in E. Java PSC

Australian listed oil and gas company Cue Energy Resources Limited announced Tuesday that more oil and gas had been discovered in Sampang production sharing contract (PSC) area, offshore East Java.

The company said on July 2, 2001 the Oyong-2 well in the Sampang PSC, was at a depth of 1,006 meters and was under reaming prior to running 13(3/8) inches casing.

Wire line logs have been run and have confirmed a gas column of 110 meters and a gross oil column of up to a possible 40 meters.

The company said the plan ahead was to drill ahead to test the primary objective Wonocolo and Ngrayong formations prior to testing the Mundu oil and gas zones.

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.

Santos is the operator of Sampang PSC and holds a 45 percent stake, while Cue has a 15 percent stake and Coastal Indonesia Sampang Ltd. holds the balance. (alex)