Attempts to Recover Stuck Drill String at Naga Utara-2 Well Fail

Cue Energy Resources Ltd. (Cue) disclosed Friday that at 06:00 local time Dec. 13, 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, several attempts have been made to free the stuck drill string which became stuck while drilling the 8.5 inch hole. These operations have not been successful and the drill string has been cut at a depth of 4,862 feet (1,482 meters) MD below Kelly Bushing. Preparations are underway to sidetrack the well around the obstruction left in the hole.

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:

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


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