Cue Energy Resources Ltd. (Cue) revealed Friday that at 06:00 local time Dec. 6 the Naga Utara-2 well in the Mahakam Hilir Production Sharing Contract (PSC) in Kutei Basin, Indonesia is at a depth of 5,961 feet (1,817 meters) measured depth (MD) below Kelly Bushing.
Since the last report, 8.5 inch hole was drilled to the current depth of 5,961 feet MD below Kelly Bushing where the drill string became stuck due to the characteristics of the formation being drilled. Operations to recover the drill string and resume drilling are in progress.
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. The proposed total depth of the well is 6,777 feet (2,065 meters) MD below Kelly Bushing.
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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