Cue Energy gets government nod for Mahato PSC

THE ROADHOUSE BOWSER: Cue Energy (ASX: CUE) has received Indonesian government approval for a farm-in agreement with Bukit Energy Central Sumatra.

Under the agreement Cue will acquire a 12.5 per cent participating interest in the 5,600 square kilometre Mahato Production Sharing Contract (PSC) onshore Central Sumatra, Indonesia.

The Mahato PSC is located in an area in the Central Sumatra basin close to several producing oil fields, including Indonesia’s largest onshore oil fields; the Minas oil field (over 5 billion barrels) and the Duri oil field (over 3 billion barrels).

“The block contains multiple appraisal and exploration drilling opportunities with two wells currently planned for 2H 2015,” Cue Energy said in its ASX announcement.

Cue Energy outlined its 2015 work plan to include an appraisal well to delineate the possible extension of the Petapahan field into Mahato PSC, and a further exploration well nearby and seismic acquisition of high-grade exploration prospects for future drilling.

As part of the farm-in, Cue’s share of costs for the two wells and seismic is capped by Bukit.

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