Cue Energy Resources Ltd. has received government approval for the farm-in agreement with Bukit Energy Central Sumatra (Mahato) Pte. Ltd. to acquire a 12.5% participating interest in the Mahato production sharing contract (PSC) onshore Central Sumatra, Indonesia.
The 2,162-square-mile (5,600-square-kilometer) Mahato PSC is located in the Central Sumatra basin close to several producing oil fields, including Indonesia’s largest onshore oil fields: the Minas oil field (over 5 billion barrels) and the Duri oil field (over 3 billion barrels). The block contains multiple appraisal and exploration drilling opportunities, with two wells planned for the second half of 2015.
The 2015 work plan includes an appraisal well delineating the possible extension of the Petapahan field into the Mahato PSC, a subsequent exploration well nearby, and seismic acquisition to further exploration prospects for future drilling. As part of the farm-in, Cue’s share of costs for the two wells and seismic is capped by Bukit.
The Mahato PSC is surrounded by existing infrastructure which is expected to result in a reduced cycle time to development of any discoveries.