Santos, partners suspend drilling in Oyong-2 well in E. Java PSC

Australian listed oil and gas explorer Cue Energy Resources Limited announced Friday that wire line logging in Oyong-2 well in Sampang production sharing contract (PSC), East Java had indicated a 2-meter oil zone, but of poor reservoir quality.

However, according to Cue, the oil occurrence of this zone is encouraging for the other structures in the PSC.

Cue said it planned to suspend Oyong-2 well drilling for potential future production.

The company said it would back to Oyong-1 well to begin testing the oil and gas columns that were encountered in the Mundu Formation.

According to Cue, the testing is expected to take a minimum of 10 days after which the rig will move to drill the Anggur-3 well.

Oyong-2 is located approximately 125 meters north of the Oyong-1 discovery well.

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