Cue Energy Resources Ltd., Melbourne, has begun commercial oil production from PB field in the Mahato PCS, onshore Central Sumatran basin, Indonesia. A dispute between joint venture partners, in which Cue was excluded from participation in the operations, has been settled, the company said Jan. 15.
The PB-1 well is producing 600 b/d. The oil is being processed through existing third-party facilities.
A workover of exploration well PB-2 is expected to bring it into production in this year’s first quarter. The JV also plans to drill three additional development wells on the field before end March.
Cue, which holds a 12.5% participating interest in the Mahato PSC, said the PB-1 and PB-2 wells were drilled in late 2019 and early 2020, respectively (OGJ Online, Mar. 26, 2015). In April 2020, Indonesian authorities reported the field as a 61.8 million bbl oil discovery.
Under the dispute resolution, Cue agreed to pay a cash call of $300,000 for the PB-2 well and an additional $380,000 to the JV partners. The settlement is due by end January.
Cue said it has previously paid for its participating interest in the field infrastructure, the PB-2 well workover, and the three forthcoming development wells.
The Mahato PSC is operated by Texcal Mahato EP Ltd., which is part of the Sabson Group.
