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Efforts are Underway to Resume Drilling at Mahakam PSC

Source: www.gulfoilandgas.com 12/6/2013, Location: Asia

Cue Energy Resources Ltd (Cue) advises that at 06:00 local time on 6 December 2013, the Naga Utara-2 well is at a depth of 5,961 ft MDKB (1,817m).

Since the last report, 8 hole was drilled to the current depth of 5,961 ft MDKB where the drill string became stuck due to the characteristics of the formation being drilled.

Operations to recover the drill string and resume drilling are in progress. 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. The proposed total depth of the well is 6,777 ft MDKB (2,065m).

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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