- Cue Energy Resources (CUE), a subsidiary of New Zealand Oil & Gas (NZO), has brought another producing well in Mahato PSC, Indonesia online
- Cue drilled and completed the PB-08 well which averages 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 wells completed to date indicate potential for further oilfield development and operator plans five additional producing wells to increase production
- Shares of the company are trading at 45 cents
New Zealand Oil & Gas (NZO) majority subsidiary Cue Energy Resources (CUE) has brought another production well online.
Cue, in which New Zealand Oil & Gas has a 50.04% stake, has drilled and completed the PB-08 well, which is located under Mahato’s 5,600 square kilometer Production Sharing Contract (PSC) , in Indonesia.
The Mahato PSC is located in the central basin of Sumatra and is close to several producing oil fields. Cue owns a 12.5% stake in Mahato PSC, with Texcal holding a controlling 51% stake.
Since its completion, the PB-08 well has produced an average of approximately 600 barrels of oil per day and is now contributing to the 5,600 barrels of oil per day produced at the PB oilfield.
The PB-08 well is the eighth producing 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 has been completed as an oil producer in Bekasap A sand which is a new production horizon. Wells in the PB field are now producing from 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 from the eight wells drilled so far would indicate that there is further development potential in the oilfield and Texcal, which is acting as operator, is planning five additional producing wells to the north of the field to boost production.
Drilling of the first of five wells could begin immediately in early February.
The company’s shares were trading steadily at 45 cents as of 3:23 p.m. AEDT.