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Drilling Continues at Naga Utara-2 Well in Mahakam Hilir PSC

Source: www.gulfoilandgas.com 10/18/2013, Location: Asia

Cue Energy Resources Ltd (Cue) advises that at 06:00 local time the Naga Utara-2 well is at a depth of 1,305 ft MDKB (398m). Since the last report, a 16” pilot hole was drilled to the current TD and the hole diameter is currently being opened to 24” ahead of running and cementing the 18 casing.

The well site is located in the onshore portion of the Kutei Basin on the island of Kalimantan (Borneo), approximately 10 km NE 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 target location approximately 475m north of the earlier well. Naga Utara-2 has a proposed TD of 2,068mMD (1,981mTVD) and drilling is expected to take approximately 62 days.

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%
SPC Mahakam Hilir Pte Ltd 60% (Operator)

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