Cue gains Indonesian farm-in approval for Mahato PSC
Cue Energy Resources Ltd., Melbourne, received approval from Indonesia for a farm-in agreement with Bukit Energy to acquire a 12.5% interest in the Mahato production-sharing contract.
The 5.6-sq-km PSC area lies in the central Sumatra basin nearby a number of producing fields, including the country’s largest onshore oil fields at Minas and Duri.
Cue says the Mahato block contains multiple appraisal and exploration drilling potential. Two wells will be drilled during this year’s second half, one of which will endeavour to define a possible extension of Petapahan field into the Mahato PSC. The other will be an exploration well nearby. There also will be a program of seismic acquisition to upgrade the region’s other exploration prospects.
As part of the farm-in, Cue’s share of costs for the two wells and the seismic work are capped by Bukit.
In related news, New Zealand Oil & Gas Ltd. has crept up to a 43.01% holding in Cue in pursuit of its hostile takeover of the company.
