CUE ENERGY Resources has increased its presence in the Kutei basin by acquiring full ownership of the Mahakam Hilir production sharing contract (PSC), onshore Kalimantan, Indonesia.
Cue currently owns 40 per cent of the interest and subject to government approvals will purchase the remaining 60% from SPC Mahakam Hilir.
When drilling starts on the project in 2015 it will mark the company’s first entry as a drilling operator in South East Asia.
Cue chief financial officer David Knox said the purchase was motivated by the identification of a “robust” drill-ready oil prospect – the Naga Selatan -2 (Southern Dragon) – which may be farmed-down in the future.
The prospect lies along the large Sei Nangka and South Pelarang oil fields, with the multiple targets at a depth of between 1,000 metres to 1,800 metres.
“The onshore Mahakam Hilir PSC aligns with Cue’s objectives to acquire high quality exploration and appraisal opportunities within our South East Asian focus area,” Mr Knox said.
Further exploration objectives had been identified on existing seismic data, he said.