Mahato Production Sharing Contract (PSC)
Cue holds a 12.5% interest in the Mahato PSC in Central Sumatra, Indonesia. Since early 2021, oil has been procuced from the PB field in PSC, after discovery wells were drilled in late 2019. The Central Suamtra Basin contains some of the largest oil field in Indonesia, the Minas and Duri fields.
Commercial oil production commenced from the PB field in the Mahato PSC in early 2021 from the first well, PB-1. Three additional development wells, PB-3, PB-4 and PB-5 were subsequently drilled and put into production along with PB-2 which was completed after being drilled as an exploration well.
By mid 2021 all five wells were in production totaling approximately 3600 barrels of oil per day (gross). All wells encountered oil in the main Bekasap A, B and C reservoirs as anticipated. PB-1 is producing oil from the Bekasap B and PB-2, PB-3 and PB-5 are producing from Bekasap C and PB-4 has commingled production from both Bekasap B and C reservoirs. The unperforated reservoirs in all wells are candidates for future production.
In July 2021, the PBE-1 well was drilled targeting a structure to the east of the existing PB field. The well did not encounter any hydrocarbons and was and was plugged and abandoned in early September 2021.
The next phase of development drilling has commenced with development well PB-6 underway in September 2021, to be followed by PB-7 and PB-8. These wells will complete the current development program under the approved Plan of Development. After reviewing the drilling and production results, the joint venture may choose to submit a plan of further devlopment to the Indonesian government to access any reserves that that may be considered to be unaccessed by the existing wells.
Exploration of other areas in the Mahato PSC is expected to continue after the full devlopment of the PB field.
The area is considered under explored, and due to its location in the oil rich Central Sumatra Basin, a number of future drilling targets have been identified.
The Joint Venture partners in the Mahato PSC are:
|Central Sumatra Energy