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Attempts to Recover Stuck Drill String at Naga -2 Fail

Source: www.gulfoilandgas.com 12/13/2013, Location: Asia

Cue Energy Resources Ltd (Cue) advises that, the Naga Utara-2 well is at a depth of 5,961 ft MDKB (1,817m). Since the last report, several attempts have been made to free the stuck drill string which became stuck whilst drilling the 8 hole. These operations have not been successful and the drill string has been cut at a depth of 4,862 ft MDKB (1,482m).

Preparations are underway to sidetrack the well around the obstruction left in the hole.

The well site is located in the onshore portion of the Kutei Basin on the island of Kalimantan (Borneo), approximately 10 km NE of the town of Samarinda (map attached). Naga Utara-2 is operated by SPC Mahakam Hilir Pte Ltd, a subsidiary of Singapore Petroleum Company Ltd.

The well is the third to be drilled by the Mahakam Hilir Joint Venture and will appraise the gas shows seen in Miocene-age sandstones at Naga Utara-1 which were not fully evaluated in the previous well due to mechanical problems. The well will then be deepened to evaluate additional reservoir objectives. The well is being drilled from the same pad as Naga Utara-1 to a target location approximately 475m north of the earlier well. The proposed total depth of the well is 6,777 ft MDKB (2,065m).

Cue will provide weekly progress reports during the drilling of Naga Utara-2. Participating interests in the Mahakam Hilir PSC are as follows:
Cue Mahakam Hilir Pty Ltd 40%
SPC Mahakam Hilir Pte Ltd 60% (Operator)

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