Mahato PSC is an onshore licence

The Indonesian Government has revealed that the recent oil discovery at the PB-1 exploration well in the Mahato production sharing contract (PSC) of the central Sumatra basin contains 61.8 million barrels of oil.

According to joint venture (JV) partner Cue Energy, the exploration well commenced drilling in November last year.

Mahato PSC is an onshore license covering an area of about 5,600km².

It is located in a highly prospective area in the prolific central Sumatra Basin, Indonesia and is operated by Texcal Mahato. Cue Mahato, a fully owned subsidiary of Cue Energy Resources, owns 12.5% participating interest in the PSC.

PB-1 is planned as an exploration well to test the PB prospect. It was drilled to a total depth of 1,750m.

The PB prospect is a three-way dip closed structure, part of the Petapahan thrust/wrench system. The primary objective of the PB-1 well was to target the Early Miocene Bekasap reservoirs, which are the producing reservoirs at the nearby Petapahan (170 million barrels) and Kotabatak (390 million barrels) fields.

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Cue Energy said in a statement: “As previously disclosed, two wells have been drilled in the Mahato PSC. The operator, Texcal Mahato EP Ltd (Texcal) and other joint venture parties are claiming to have excluded Cue from participation in these operations.

“These claims are disputed by Cue as having no basis under the joint operating agreement (JOA). Cue is evaluating all available options and is asserting all its legal rights under the JOA.”

Cue Energy is an oil and gas exploration and production (E&P) firm with operated and non-operated interests in exploration permits in the Carnarvon Basin, offshore Western Australia and onshore Indonesia.