Cue Energy to acquire 100% interest in onshore Mahakam Hilir PSC, Indonesia

Oil and gas exploration and production firm Cue Energy Resources has agreed to acquire a 100% interest in the Mahakam Hilir PSC in the Kutei Basin onshore Kalimantan, Indonesia.

The company will acquire SPC Mahakam Hilir, which owns the remaining 60% interest in the PSC under a sale and purchase agreement with SPC E&P.

Cue Energy, which will drill the remaining commitment well in the PSC, has identified a drill-ready oil prospect within the prospect inventory, the Naga Selatan -2 (Southern Dragon).

The Naga Selatan -2 well review will be extended to the Naga Utara-1 gas discovery, drilled in the first quarter of 2012.

It will have the important objectives of acquiring information on potential flow rates, pay thickness and gas quality to characterise the resource.

The oil prospect lies along trend of the Sei Nangka and South Pelarang oil fields.

The multiple targets are shallow, situated at about 1,000-1,800 TVD. Further exploration objectives have also been discovered on the current seismic data.

The drilling programme preparations have already started with work planned to commence in 2015.

Cue Energy said the Mahakam Hilir PSC aligns with its objectives to acquire exploration and appraisal opportunities within its SE Asian focus area.

The transaction marks the company’s first entry as a drilling operator and compliments its expansion of Indonesian acreage portfolio.
Cue Energy has petroleum assets in Papua New Guinea, Indonesia, New Zealand and Australia.