Wortel gas development nearing completion

ASX-listed energy company Cue Energy Resources Ltd (CUE) said that the development of Wortel gas discovery in Sampang Block, south of Madura island, is nearing completion and its first gas export is expected to occur at the end of January 2012.

The company announced in Jakarta on Tuesday that drilling operations on Wortel are expected to be finished in first week of January.

The Sampang production sharing contract (PSC) contains the Oyong Field, Wortel and Jeruk discoveries. The permit is operated by Santos (45%), with partners SPC (40%) and CUE (15%).

The company stated that the Joint Venture was currently progressing the development of the Wortel gas discovery. The jackup drilling rig COSL Boss is being used to drill and complete two wells.

The Wortel-4 well has been drilled to a total measured depth of 2271mMDRT and the well is currently being completed as a gas producer. The rig should finish this task within the next few days.

Wortel-3 has been drilled to 657mMDRT and the 13-3/8? casing run and cemented. At the completion of Wortel-4, the rig will return to Wortel-3 to drill to the total depth (TD) and complete the well.

It said that the rig will then be relocated over the Oyong wellhead platform to drill and complete an infill Oyong production well.

The wellhead platform topsides fabrication has been completed and pre-commissioning of the facilities is ongoing at the fabrication yard.

Once drilling at Wortel is complete the platform topsides will be installed and the system commissioned in the third week of January.

CUE said the project is expected to be accomplished within the original US$105.1 million budget with CUE?s share of US$15.8 million. CUE will use existing cash resources to fund its share of the development.

After completion of the infill drilling activity CUE?s net share of production from the Sampang PSC will be approximately 2,700 barrels of oil equivalent per day before production sharing with the Indonesian Government. (ruly)