re: Ann: Naga Utara-1 Well Mahakam Hilir PSC ... Looks like...

re: Ann: Naga Utara-1 Well Mahakam Hilir PSC ... Looks like drilling is underway without much fanfare. As

As I posted back in mid-October, I put a few $$$ here for the following BESBS reasons:

"2. This target area is on the boundary of the already producing Sambutan gas/oil field. The Sei Nagka and South Perlang oil fields are all located on the western boundary of this drill target. This means that while still a wildcat, at least oil has been found in the region.
3. Cue will repay US$4m in past costs but they have the cash. Risk of CR is reduced.
4. The target is decent. The indicative recoverable reserves are 20 million barrels for the first well andthe second has the potential to deliver 80 Bcf of gas.
5. At current SP, CUE is within 10% or so of their annual low.

As CUE is not traditionally a punter's favourite, I don't expect huge returns. Nonetheless, they are aiming for a late Q4 drill and given the target size, we should hopefully see some BESBS gains with minimal risk (given we are operating in the market!) in the outlay.

Just my thoughts. DYOR..."

My entry price is 21.5c so to date we have gone largely nowhere. Nonetheless, we should have some indication of results within 3 weeks. Hopefully CUE will start to lift on speculation within the next 7-14 days. As I said back then, CUE is not normally a punter's favourite but oil/gas potential is here. I'm still holding and will watch with interest.