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Cue seizes total control of Indonesia onshore field

21st October 2014

Cue Energy Resources has agreed to acquire a 100 per cent interest in the Mahakam Hilir PSC in the prolific Kutei Basin onshore Kalimantan, Indonesia

Cue seizes total control of Indonesia onshore field
The drilling programme preparations have commenced with a view to drilling in 2015

Cue will purchase SPC Mahakam Hilir Pte Ltd, which holds the remaining 60 per cent interest in the Mahakam Hilir PSC, under a sale and purchase agreement with SPC E&P Pte Ltd. Cue will assume operatorship with a 100 per cent interest in the PSC and will drill the remaining commitment well.

As part of an internal review of the permit Cue has identified and is excited by a robust  drill-ready oil prospect within the prospect inventory, the Naga Selatan -2 (Southern  Dragon) which has encouraged Cue to move to a 100 per cent interest in the permit.

Cue may look to farm-down at an appropriate time.

This oil prospect lies along a trend of the large Sei Nangka and South Pelarang oil fields.

The multiple targets are shallow, located at approximately 1,000-1,800-metres TVD. Additional exploration objectives have also been identified on the existing seismic data.

The drilling programme preparations have commenced with a view to drilling in 2015.

The onshore Mahakam Hilir PSC aligns with Cue’s objectives to acquire high quality exploration and appraisal opportunities within its South East Asian focus area, and marks Cue’s first entry as a drilling operator.

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