JAKARTA: Cue Energy Resources Ltd’s Naga Selatan-1 Well in Mahakam Hilir PSC, East Kalimantan has reached the drilling target.
As of May 30, the 9 5/8” casing has been set at a depth of 4,997 feet measured depth (MD). Intermediate wire-line logs are being acquired between last casing point to current depth of 6,852 feet.
However, Cue in an information disclosure submitted to Australia Stock Exchange today said it will continue to drill ahead in 8 ½ inch hole to the well total depth (TD) of 8,000 feet and further evaluate with wire-line logging.
The Naga Selatan-1 Well is located approximately 7.5km to the west of the producing Sanga Sanga oilfield. Naga Selatan is an oil prospective field.
Cue Energy controls 40% working interest in the block. Meanwhile, SPC Mahakam Hilir is operator and owner of 60%. Cue Energy is an Australian based oil and gas company with projects in Australia, New Zealand and Indonesia.
In Indonesia, Cue was an original participant in the Sampang Production Sharing Contract (PSC), which was signed back in December 1997, citing Indonesia Resource Journal on April 12, 2012.
Located close to Indonesia’s second largest city to Surabaya, Cue expects energy demand in the area to grow substantially in the coming years.
At the Oyong Field, the company is currently producing approximately 3,000 barrels of oil per day and 60 million standard cubic feet per day of gas.
Its more recent Wortel discovery, located next to Oyong, began producing gas late last year, further increasing the company’s Indonesian output, with evaluation at the Jeruk oil discovery also underway within the country. (tw)