Cue Energy Resources Ltd says 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