SKK Migas Extends Exploration Period for East Kalimantan's Mahakam PSC

Australia's Cue Energy Resources Ltd. reported Wednesday that it has been notified by SKK Migas of the approval of its request for a four year extension to the exploration period of the Mahakam Hilir Production Sharing Contract (PSC) in Kutai Basin, East Kalimantan, Indonesia until May 2020.

The 4 year extension includes 2 contingent wells in the first 2 years, which Cue can elect to drill or withdraw from the PSC; and geological studies, pre-FEED (front end engineering and design) studies and a Plan of Development in the latter 2 years.

Cue has 100 percent equity and is operator of the Mahakam Hilir PSC.

Naga Selatan-2 Discovery

As announced on Feb. 3, Cue successfully drilled the Naga Selatan-2 (NS-2) Exploration well and recovered oil and gas to surface.

While drilling the deeper section, gas was also flared to surface. The well was suspended to allow for future production testing.

The results from NS-2 confirmed Cue’s geological model of the area and have provided new information regarding the existence of a potential deeper gas play. Results from the exploration activity are being analysed and Cue expects to be able to announce an internal estimate of volumes in the second half of the year.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Regulatory Administrator Job
Expertise: Regulatory Compliance
Location: Denver, CO
Expertise: Camp Boss|Galleyhand|Ships Deckhand / Deck Crew
Location: Port Fourchon, LA
Patent Counsel/Senior Patent Counsel
Expertise: Legal
Location: Richmond, VA
search for more jobs

Brent Crude Oil : $55.14/BBL 0.61%
Light Crude Oil : $49.48/BBL 0.86%
Natural Gas : $3.12/MMBtu 0.95%
Updated in last 24 hours