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.
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