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Drilling Commences at Naga Utara-2 Well in Mahakam Hilir PSC

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Australia's Cue Energy Resources Ltd. (Cue) reported Monday that the Naga Utara-2 well was spud Oct. 5. The well site is located in the onshore portion of the Kutei Basin on the island of Kalimantan (Borneo), Indonesia approximately 6.21 miles (10 kilometers) north east of the town of Samarinda. The well is operated by SPC Mahakam Hilir Pte Ltd., a subsidiary of Singapore Petroleum Company Ltd.

The well is the third to be drilled by Mahakam Hilir Joint Venture and will appraise the gas shows seen in Miocene-age sandstones at Naga Utara-1 which were not fully evaluated in the previous well due to mechanical problems. The well will then be deepened to evaluate additional reservoir objectives. The well is being drilled from the same pad as Naga Utara-1 to a target location approximately 1,558.4 feet (475 meters) of the earlier well. Naga Utara-2 has a proposed total depth (TD) of 2,068 meter Measured Depth (mMD) or 1,981 meter true vertical depth (mTVD) and drilling is expected to take approximately 62 days.

Cue will provide weekly progress reports during the drilling of Naga Utara-2. Participating interests in the Mahakam Hilir Production Sharing Contract are as follows:

  • Cue Mahakam Hilir Pty Ltd: 40 percent
  • SPC Mahakam Hilir Pty ltd: 60 percent (Operator)


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