Cue Energy Resources Ltd (Cue) gave an update Friday that at 06:00 local time Nov. 15 the Naga Utara-2 well in the Mahakam Hilir Production Sharing Contract (PSC) in Kutei Basin, Indonesia is at a depth of 4,396 feet (1,340 meters) measured depth (MD) below Kelly Bushing and drilling ahead in 12.5 inch hole.
Since the last report, the 13.375 inch casing was set at 3,343 feet (1,019 meters) MD below Kelly Bushing and, after drilling through the shoe, a leak-off test was performed before drilling ahead. Progress for the week has been 1,053 feet (320 meters).
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 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 totla depth (TD) of 6,784 feet (2,068 meters) MD (6,499 feet or 1,981 meters total vertical depth) 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:
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