Drilling Continues at Naga Utara-2 Well in Mahakam Hilir PSC in Kutei Basin

Cue Energy Resources Ltd (Cue) reported Friday that at 06:00 local time the Naga Utara-2 well in the Mahakam Hilir Production Sharing Contract (PSC) in Kutei Basin, Indonesia is at a depth of 1,305 feet (398 meters) measured depth (MD)below Kelly Bushing.

Since the last report, a 16 inch pilot hole was drilled to the current total depth (TD) and the hole diameter is currently being opened to 24 inch ahead of running and cementing the 18.625 inch casing.

The well site is located in the onshore portion of the Kutei Basin on the island of Kalimantan (Borneo), approximately 6.2 miles (10 kilometers) north east (NE) of the town of Samarinda. Naga Utara-2 is operated by SPC Mahakam Hilir Pte Ltd, a subsidiary of Singapore Petroleum Company Ltd.

The well is the third to be drilled by the 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 feet (475 meters) north of the earlier well. Naga Utara-2 has a proposed TD of 6,785 feet (2,068 meters) MD of 6,499 feet (or 1,981 meters TVD) 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 PSC are as follows:

  • Cue Mahakam Hilir Pty Ltd - 40 percent
  • SPC Mahakam Hilir Pte Ltd - 60 percent (operator)

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