Cue Energy to Raise Stake in Kutei Basin's Mahakam Hilir PSC to 100%
Australia's Cue Energy Resources Ltd announced Tuesday that subject to government approvals, it has agreed to acquire a 100 percent interest in the Mahakam Hilir PSC in the prolific Kutei Basin onshore Kalimantan, Indonesia. Cue will purchase SPC Mahakam Hilir Pte Ltd, which holds the remaining 60 percent interest in the Mahakam Hilir PSC; under a sale and purchase agreement with SPC E&P Pte Ltd. Cue will assume operatorship with a 100 percent interest in the PSC and drill the remaining commitment well in the PSC.
- As part of an internal review of the permit Cue has identified and is excited by a robust drill-ready oil prospect within the prospect inventory, the Naga Selatan -2 (Southern Dragon) which has encouraged Cue to move to a 100% interest in the permit. Cue may look to farmdown at an appropriate time
- This oil prospect lies along trend of the large Sei Nangka and South Pelarang oil fields. The multiple targets are shallow, located at approximately 1,000-1,800 TVD. Additional exploration objectives have also been identified on the existing seismic data
- The drilling programme preparations have commenced with a view to drilling in 2015
The onshore Mahakam Hilir PSC aligns with Cue’s objectives to acquire high quality exploration and appraisal opportunities within our SE Asian focus area, and marks Cue’s first entry as a drilling operator. This acquisition adds to and compliments our continuing expansion of our Indonesian acreage portfolio.
Upon completion of the acquisition the participants and their respective interests will be:-
- SPC Mahakam Hilir Pte Ltd (Operator)* (Cue subsidiary) - 60 percent
- Cue Mahakam Hilir Pty Ltd (Cue subsidiary) - 40 percent
*The name of the Operator will be changed upon completion.
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