Cue Updates on Drilling at Naga Utara-2 Well in Mahakam Hilir PSC

Cue Energy Resources Ltd (Cue) reported Thursday that at 06:00 local time Nov. 28, the Naga Utara-2 well in the Mahakam Hilir Production Sharing Contract (PSC) in Kutei Basin, Indonesia is at a depth of 5,117 feet (1,559 meters) measured depth (MD) below Kelly Bushing and is drilling ahead in 8.5 inch hole towards the proposed total depth of 6,777 feet (2,065 meters) MD below Kelly Bushing.

Since the last report, the 9.625 inch casing was set at a depth of 4,912 feet (1,497 meters) MD below Kelly Bushing and the blowout preventer (BOP) equipment tested prior to commencing the drilling of the 8.5 inch phase.

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.

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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