Cue Energy Resources Limited has announced the execution of a farm-in agreement with Bukit Energy Central Sumatra (Mahato) Pte Ltd (Bukit) to acquire a 12.5% participating interest in the Mahato Production Sharing Contract (PSC) onshore Central Sumatra, Indonesia.
The farm-in is subject to Indonesian government approval. Bukit will maintain a 25% participating interest in the PSC after the transaction.
The 5600 km2 Mahato PSC is located in a highly prospective area in the prolific Central Sumatra basin close to several producing oil fields, including the largest onshore oil fields of Indonesia, 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 currently planned for 2015.
Cue will contribute to the costs for seismic and drilling of Bukit however these costs remain undisclosed due to current discussions by Cue to capture other exploration opportunities in Indonesia.
The Mahato farm-in is consistent with Cue’s strategy of deepening its exploration portfolio by participating in highly prospective onshore acreage in Asia and Australia with short commercialisation timeframes.
Commenting on the agreement, Cue CEO, David Biggs, said: “We are very excited about our position in the Mahato acreage and the potential for significant near-term value.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/21112014/cue-acquires-acreage-onshore-indonesia-1841/