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Cue Energy Resources makes large gas discovery at Paus Biru-1 well offshore Indonesia

An estimated net gas pay of 29 metres was intersected across the primary Mundi reservoir target.
Cue Energy Resources makes large gas discovery at Paus Biru-1 well offshore Indonesia
The well is currently being plugged and abandoned as planned

Cue Energy Resources Limited (ASX:CUE) 100%-owned subsidiary Cue Sampang Pty Ltd has made a gas discovery at the Paus Biru-1 exploration well offshore East Java in Indonesia’s Madura Strait.

An initial drill stem test (DST) undertaken over the 576-605-metre measured depth (MD) interval flowed gas at a rate of 11.2 million standard cubic feet per day over a 5-hour period.

The well was then shut-in for nine days for pressure to build up before a maximum flow test produced 13.8 million standard cubic feet per day for 55 minutes.

Discovery to provide gas sale volumes

Cue chief executive officer Matthew Boyall said: “This is an excellent result which has been well-executed by the operator Ophir Energy and is in-line with our pre-drill success case expectations.

“A future development of this resource is expected to provide sales gas volumes as well as extending the life of the existing fields and facilities within the Sampang production sharing contract (PSC).

Commercialisation plan

Notably, preliminary gas sample analysis has indicated low inert content.

A plan of development with commercialisation through the existing Oyong facilities will now be prepared for submission to the regulator.

Participants in the Sampsang PSC are:

  • Operator Santos (Sampang) Pty Ltd (an Ophir Energy Group company), with a 45% interest;

  • Singapore Petroleum Sampang Ltd which holds 40%; and

  • Cue Sampang Pty Ltd which holds 15%.

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