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- New Zealand Oil & Gas’ (NZO) subsidiary Cue Energy Resources (CUE) has brought another production well online in the Mahato PSC, Indonesia
- Cue has drilled and completed the PB-08 well which is producing an average of about 600 barrels of oil per day
- The well follows the completion of the PB-07 well in December and marks the completion of the first phase of a development plan for the PB oilfield
- Results from the wells completed so far indicate potential to further develop the oilfield and the operator is planning five more production wells to increase production
- Company shares are trading steady at 45 cents
New Zealand Oil & Gas’ (NZO) majority-owned subsidiary Cue Energy Resources (CUE) has brought another production well online.
Cue, in which New Zealand Oil & Gas holds a 50.04 per cent stake, drilled and completed the PB-08 well, which is located within the 5600-square-kilometre Mahato production sharing contract (PSC), Indonesia.
The Mahato PSC lies within the Central Sumatra basin and is close to several producing oil fields. Cue owns a 12.5 per cent stake in the Mahato PSC with Texcal owning a majority 51 per cent stake.
Since its completion, the PB-08 well is producing an average of roughly 600 barrels of oil per day and is now contributing to the 5600 barrels of oil per day being produced within the PB oilfield.
The PB-08 well is the eighth production well drilled in the PB oilfield and follows the recently completed PB-07 well which is producing 650 barrels of oil per day.
PB-08 was completed as an oil producer in the Bekasap A sand which is a new production horizon. Wells within the PB field now produce from the Bekasap A, B and C sands.
Importantly for Cue, the PB-08 well marks the completion of the first phase of a development plan for the PB field.
Results of the eight wells drilled so far reportedly indicate there’s potential for further development in the oilfield and Texcal, which acts as operator, is planning five more production wells to the north of the field to increase production.
Drilling of the first of the five wells may commence immediately in early February.
Company shares were trading steady at 45 cents at 3:23 pm AEDT.
