SPC, Cue plan further drilling at Mahakam Hilir
Tuesday, March 20 2012 - 01:47 AM WIB
Australian oil, gas firm Cue Energy Resources Limited and its partner Singapore firm SPC plans to drill second exploration well in Mahakam Hilir PSC onshore East Kalimantan in the second quarter of this year.
According to Cue?s presentation released on Tuesday, the Naga Selatan-1 well will be drilled after the first well Naga Utara-1 which is expected to be completed this month.
The Naga Selatan has a prospect of 20 million barrels, the company said.
The Naga Utara well, which is currently being production tested, encountered hydrocarbon bearing sandstones after being drilled to the total depth of 5066 feet.
Depending on the success of Naga Utara well, the partnership may drill appraisal wells in the third and fourth quarter.
Cue has 40percent interest in Mahakam Hilir with operator SPC holding the balance.
Editing by David Mustakim