CUE 4.41% 6.5¢ cue energy resources limited

## cue - png (prl 8,prl 9,s/e gobe unit) update (3

  1. 2,257 Posts.
    Cue currently has interests in two Petroleum Prospecting Licences (PPL), two Petroleum Retention Licences (PRL), one Petroleum Development Licence (PDL) and in the SE Gobe oil field unit.

    Exploration Licences
    Cue participates in PPL190 and PRL9 in the fold belt of the Papuan Basin and in PRL8 in the foreland of the Papuan basin.

    PPL190 - Papuan Basin, PNG (10.947% interest)
    Operator : Oil Search
    PPL190 lies immediately adjacent to the SE Gobe field in the fold belt of the Papuan basin. The license contains several prospective structural trends, including the eastern extension of the SE Gobe ridge. The Bilip prospect which straddles the boundary of PDL4 and PPL190 was tested by the Bilip -1 well which spudded on 17 October 2002. The well was designed to primarily test an upper hanging wall objective similar in style to the SE Gobe field and to the Saunders -1 oil discovery in PDL -4 and potentially, a deeper more risky sub thrust footwall objective.

    The well was approved to a total depth of 2480 metres drill depth, but with the expectation that a decision to deepen to a total depth of approximately 3450 metres drill depth would be taken after the penetration of the upper objective.

    Bilip -1 encountered the primary objective Iagifu sandstone at a depth of 2422 metres drill depth, at the deeper end of the predicted depth range. Hydrocarbon shows and subsequent logs indicated an approximately 30 metre gross hydrocarbon column above an oil water contact at 2453 metres drill depth.

    The well was then drilled to 2812 metres drill depth after penetrating the master thrust fault at around 2760 metres drill depth, at which time a decision was made to deepen the well. Cue declined to participate in the deepening of the well to test the deeper objective, as it considered the substantial additional cost and consideration of risk versus reward did not warrant its participation in the deepening. The well subsequently reached a total depth of 3350 metres drill depth without encountering significant hydrocarbons in the deeper section.

    A cement plug was set in the deeper section and a closed chamber drill stem test conducted in the Iagifu Sandstone reservoir over the interval 2,445 to 2,448 metres. During a 22 minute flow period, an estimated stock tank oil volume of 30.5 barrels was produced giving an estimated average flow rate of 2,000 stock tank barrels of oil per day. Oil gravity is 46 API and estimated solution gas/oil ratio is 1200 standard cubic feet per stock tank barrel.

    Analysis of additional wireline pressure points in the Iagifu reservoir has confirmed an oil water contact at 2453 metres, with a gas oil contact at 2437 metres drill depth, giving a 16 metre gross oil column over lain by 15 metres of gas to the top of the sand at 2422 metres drill depth. Recoverable oil volumes are likely to be less than 1 million barrels.

    The well has been cased and suspended as a potential future oil producer.

    Potential drilling candidates for future drilling are the Wasuma (Healy) structure to the north and a redrill of the Iehi-1 well to the south. The Wasuma structure is assessed to have the potential to contain around 50 million barrels of recoverable oil within PPL190.

    Additional 2D seismic acquisition over the Wasuma structure was acquired in early 2005. The data will be used to define a drilling target for possible drilling in 2006.

    PRL8 - Papuan Basin, PNG (10.72% interest)
    Operator : Oil Search
    The joint venture has been granted a Retention Licence (APRL8) over the Kimu gas field.

    The Kimu gas field is assessed to have approximately 1 trillion cubic feet of potentially recoverable gas.

    PRL9 - Papuan Basin, PNG (14.894% interest)
    Operator : Santos
    PRL9 lies south of the SE Gobe field and contains the Barikewa gas field. Barikewa is assessed to contain 840 billion cubic feet of potentially recoverable gas, and is immediately adjacent to the proposed PNG to Queensland gas pipeline route.

    PDL3 - SE Gobe field, PNG (5.568892% interest) Oil Unit interest (3.285651% interest)
    Operator : Santos
    SE Gobe Unit, PNG (3.285646% interest; overlift interest 3.8565%)
    In August 2005, oil production for the SE Gobe field was averaging around 8000 barrels of oil per day, Cue's share being around 260 barrels of oil per day.

    A year end 2004, SE Gobe oil reserves report has been provided by Oil Search as operator.

    The estimated field reserves were:-

    SE Gobe Oil Reserves

    Million Barrels of Oil

    Ultimate Recovery
    Cumulative Production to 31 December 2004
    Remaining to be Produced

    Proved (1P)

    Proved & Probable (2P)

    Proved, Probable & Possible (3P)

    SEG 11 recoverable volumes are not included in the remaining IP reserves. The predrill estimate for SEG-11 of 1.4 million barrels of recoverable oil is included in the 2P estimate.

    Oil production is estimated to continue to year end 2011.

    The recoverable 3P equivalent gas volume was estimated to be 268 billion cubic feet. Cue share is approximately 4 billion cubic feet.

    In April 2005, the SE Gobe -11 development well, which was drilled in an untested area of the field between SE Gobe 6 and Saunders -1, intersected a gross 61 metre oil column. The well intersected the Iagifu sandstone approximately 30 metres high to prediction and did not encounter either an oil/water or a gas/oil contact, giving an oil column larger than anticipated.

    The well has been completed as an oil producer and has been producing 1500 barrels of oil per day, increasing the field total rate to around 8000 barrels of oil per day.

    All the water and most of the gas produced from the field is being reinjected into the Iagifu reservoir from which oil is being produced. In this way wastage of gas and pollution are minimized and the injected water and gas assist in maintaining reservoir energy and in maximizing ultimate oil recovery.

    Oil production from SE Gobe is currently constrained due to produced gas handling constraints. Additional gas compression was commissioned in February 2003 and has provided greater gas reinjection capacity, thus enhancing the oil production rate.

    Additional water injection capacity was provided in 2004 by converting Gobe 8x to a water injector. The additional water injection capacity allows a higher oil production rate than would otherwise be the case.

    copyright 1999 Cue Energy

watchlist Created with Sketch. Add CUE (ASX) to my watchlist
(20min delay)
Mkt cap ! $45.37M
Open High Low Value Volume
6.7¢ 6.7¢ 6.2¢ $63.74K 978.5K

Buyers (Bids)

No. Vol. Price($)
4 383063 6.5¢

Sellers (Offers)

Price($) Vol. No.
6.6¢ 62644 1
View Market Depth
Last trade - 15.32pm 26/02/2021 (20 minute delay) ?
-0.003 ( 4.41 %)
Open High Low Volume
6.6¢ 6.7¢ 6.4¢ 316464
Last updated 15.32pm 26/02/2021 (live) ?
CUE (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.