- Cue Energy Resources (CUE) and its partners are preparing to drill the BA-01 exploration well in the Mahato production sharing contract (PSC) in Indonesia
- Final environmental clearance is pending, but the partners expect to begin drilling this quarter to test the presence of hydrocarbons
- The primary target is the Miocene-age Telisa Formation sandstone reservoir at 900 feet deep, and a secondary target is the Menggala Formation at 2500 feet
- Both targets are producing reservoirs in the Central Sumatra Basin, which Cue CEO Matthew Boyall says is a “very oil-rich area”
- Cue shares are up 1.52 per cent to 6.7 cents at 10:46 am AEDT
Cue Energy Resources (CUE) and its partners are preparing to drill the BA-01 exploration well in the Mahato production sharing contract (PSC) in Indonesia.
Cue, together with Texcal Mahato, the operator of the Mahato joint venture, are waiting for final environmental clearances to begin drilling, and if received, the well is expected to spud this quarter.
The well aims to test the presence of hydrocarbons in the BA prospect, with a primary target of the Miocene-age Telisa Formation sandstone reservoir at 900 feet deep.
A secondary target is the Menggala Formation, further down at approximately 2500 feet.
Both targets are producing reservoirs in the Central Sumatra Basin, which Cue CEO Matthew Boyall said was a “very oil-rich area” and contained the “largest onshore oilfields in Indonesia”.
Additionally, CUE said the BA prospect was one of a number of prospects and leads identified in the Mahato PSC that could be suitable candidates for future drilling.
The Mahato PSC also hosts the PB Oilfield, discovered by Cue and its partners in 2019, which has an estimated 92.8 million barrels of stock-tank oil initially in place (STOIIP) and 20.9 million barrels of gross recoverable oil.
Mr Boyall said the PB field was a good example of the success that was possible in the Mahato PSC, and the company hoped to replicate this with the BA-01 well.
Cue shares were up 1.52 per cent to 6.7 cents at 10:46 am AEDT.