Cue Energy has spud an exploration well as part of the Mahakam Hilir production-sharing contract in Indonesia, the Australian junior announced in a Thursday company statement.

Cue spuds well in Indonesia

JAKARTA, January 8, 2016 – Cue Energy has spud an exploration well as part of the Mahakam Hilir production-sharing contract in Indonesia, the Australian junior announced Thursday.

The Naga Selatan 2 well was spud on Thursday and will reach a depth of about 683 metres in the next 15 days. The well will target the Naga Selatan 2 prospect, a feature on the Pelarang anticline, and will test the Mentawir and Upper Palau Balang formation.

Naga Selatan 2 is located about 2.6 kilometres from the Naga Selatan 1 well, which is situated near vertical beds. The well encountered good oil shows, but tests were not done.

The company claims that the prospect could hold 25 million barrels of recoverable oil.

Naga Selatan is the first exploration well spud by Cue as the operator.

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