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Drilling Continues at Naga Utara-2 Well

Source: www.gulfoilandgas.com 11/15/2013, Location: Asia

Cue Energy Resources Ltd (Cue) advises that, the Naga Utara-2 well is at a depth of 4,396 ft MDKB (1,340m) and drilling ahead in 12¼” hole.

Since the last report, the 13 casing was set at 3,343 ft MDKB (1,019m) and, after drilling through the shoe, a leak-off test was performed before drilling ahead. Progress for the week has been 1,053ft (320m).

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 (map attached). 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 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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