cue resources, page-27

jeruk 3 tipped for production hot off the press Jeruk-3 tipped for production


Wednesday, 2 August 2006

THE Jeruk-3 appraisal well in the Sampang Production Sharing Contract offshore Indonesia, is being suspended as a future oil producer, now that a test of the bottom-hole section of the well is complete.



Flaring the Jeruk oil discovery in Indonesia.

Joint venture partner Cue Energy said operator Santos had advised that during the test, conducted over the interval 4789-4897m, the well flowed up to 6700 barrels of formation water per day as expected through to a 28/64-inch choke. This has confirmed the previously interpreted oil/water contact at a depth of about 4760m.

The Jeruk-3 appraisal well data will be integrated with other well and seismic data to help Santos determine the most likely resource range and forward appraisal plan.

Last month, the Jeruk field underwent a major reserve downgrade after Cue Energy announced the height of the known hydrocarbon column in the structure was considered to be about 145m, compared with the originally interpreted 379m.

This reduced the most likely contingent resource to less than the 170 million barrel estimate previously provided to the market in January 2005.

The Jeruk-3 appraisal well was drilled about 1.8km west of Jeruk-1 and 40km southeast of Surabaya.

In June, the well flowed oil at a stabilised rate of about 2750 barrels oil oil per day on test.

Participants in the Sampang PSC are operator Santos (Sampang), which holds a 40.5% stake, Singapore Petroleum Sampang (36%), Cue Sampang (13.5%) and PT Petrogas Oyong Jatim (10%).

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