Getting my head around PB Mahato OIL Field >>
Due to the success of the PB field, costs for the initial development of the field have now been recovered under the Production Sharing Contract (PSC) and a higher portion of production will be allocated to the Government of Indonesia.(I understand this means CUE gets to keep 50% of their interest share)
From last Qty
The operator is seeking government approval to continue development drilling, above the previously expected 4 more production wells, to further develop and increase production from the PB field. PB-10 is the next planned well and is expected to commence during the current quarter...
Lastest ann>>>
An additional 12x oil production wells will be drilled in the PB oil field, Mahato PSC, under a Field Development Optimisation (FDO) plan approved by SKKMigas, the Indonesian Regulator. The total number of approved production wells in the FDO is 20, with 3 water injection wells.
There are currently 8 oil production wells and 1 water injection well the field. The first development well in the current phase of drilling, PB-18* has commenced. Wells are expected to take approximately 1 month to drill and complete, so the current program is expected to take 12-14 months.
---So I wonder what happen to PB-10 ? ...so at present 8x Oil producers ...with a planned another 9x with 3x water injection wells in total planned..
1 January 2022 the successfully drilling of 8 production wells (PB-1 to PB-8) in 2021 with the field currently producing at approximately 5,500 barrels of oil per day (so 687bbl av. each well)
At the end of the March quarter PB field production was approximately 4,800 bopd from 8x oil wells and they drilled PB-9 during Qtr .... so I'm assuming PB1 production reduced and they used it as a water injection well =
Enhanced Oil Recovery (EOR)So if we use the last production per well numbers we see 600 bopd average ..
9x more oil producing wells = 5400 bopd (4800bopd first stage - natural reduction est 12.5% down to 4200bopd my rough est 9600bopd .... and I might be optimistic here so lets use 9000bopd)
9000bopd - CUE 12.5% interest -1125bopd - indo PSC 50% = 562bopd nett to CUE x A$170bbl======
My est==$95,540 per day from Mahato once all 17x wells are producing..or A$8.6mill per Qty
Of course we will see natural reduction going forward but still Great FCF for CUE ... need more of these projects ..As non of CUE Oil Production is hedged or under contract price but sold at spot prices..
Unlike the Gas which much is contracted for a period of time ..and will be another boost to CUE cashflows when some of these Gas contracts come up for renewal ...(I understand later this year some are)
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