Cue Energy Resources Limited reported Thursday receipt of government approval for the farm-in agreement with Bukit Energy Central Sumatra (Mahato) Pte Ltd. (Bukit) to acquire a 12.5 percent participating interest in the Mahato Production Sharing Contract (PSC) onshore Central Sumatra, Indonesia.
The 2,162 square miles (5,600 square kilometers) Mahato PSC is located in a highly prospective area in the prolific Central Sumatra basin close to several producing oil fields, including Indonesia’s largest onshore oil fields; the Minas oil field (over 5 billion barrels) and the Duri oil field (over 3 billion barrels). The block contains multiple appraisal and exploration drilling opportunities with 2 wells currently planned for 2H 2015.
The 2015 work plan includes an appraisal well delineating the possible extension of the Petapahan field into Mahato PSC, a subsequent exploration well nearby and seismic acquisition to further high grade exploration prospects for future drilling. As part of the farm-in, Cue’s share of costs for the two wells and seismic is capped by Bukit.
The Company is currently seeking additional exploration and production opportunities in Indonesia.
The Mahato PSC is surrounded by existing infrastructure which is expected to result in a reduced cycle time to development of any discoveries.
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