CUE ENERGY RESOURCES LIMITED

Transcription

1 CUE ENERGY RESOURCES LIMITED Mahakam Hilir PSC, Indonesia Farmin Opportunity Seapex Singapore 13 th April 2018 Bormindo rig 3 contracted for Naga Selatan-2

2 Mahakam Hilir PSC Farmin Opportunity 50 Bcf recoverable Onshore Gas Prospect located in close proximity to the currently producing Sambutan Gas Field Naga-Utara-4 appraisal well planning underway; Low cost well to 3000 feet Close to existing infrastructure and gas market with low lead time to production New study revealed previously bypassed prospectivity in Naga Utara Prospect Integration of new data, including reprocessed 2D seismic, Gravity data, 2 key 1930s Dutch wells, and 4 recent Sambutan wells, revealed potential throughout the permit Cue 100% equity. Up to 40% available for the drilling of Naga Utara-4 well Large cost bank provides attractive economics Great future potential elsewhere in the Permit. Area is currently under sampled compared to neighbouring Fields such as Sanga Sanga where numerous wells have been drilled. 2

3 Kutei Basin, East Kalimantan - A prolific petroliferous basin Prospect setting close to giant fields Adjacent to Sambutan Field which has produced >15 Bcf gas from Close to production infrastructure In success case, expect NU-4 to go to POD - short lead time from discovery to production New geologic model/ new approach to realise the > 100s Bcf potential Future prospecting will follow an approach with Gravity and structural modelling being central and integrating seismic data, surface mapping and well data 3

4 Exploration History Four wells were drilled in the permit North: Naga Utara 1 and 2 wells drilled on poor quality seismic. Naga Utara prospect oversimplified and initially mapped as crest of simple anticline. NU-1 flared gas non commercial. South: Naga Selatan 1 and 2. NS 1, drilled off structure but encountered extensive shows. In NS 2, delta top reservoir sands not present. Uplift not recognised. Intersected over pressured pro-delta deposits. Recent gravity survey and seismic reprocessing has transformed the subsurface model in the North. Naga Utara prospect now mapped as a graben that preserved the conventional deltaic sands. 4

5 New approach, new structural model Gravity/Gradiometry data acquired in late 2016 revealed a new graben structure not seen on pre existing, poor quality seismic K89-52 K89-44 Recent PSDM Seismic reprocessing strongly supports the Gravity based Graben model New model shows that the producing Sambutan Field and the Naga Utara Prospect are part of the same graben system 5

6 Existing Well logs show tested and untested gas reservoirs Sambutan 7, <100m outside permit tested flow rates of 12.5mmcfd Sambutan-8 within Mahalkam Hilir PSC boundary reveals potential gas pay over 100m gross interval. Untested due to lack of interest in gas in the 1930 s PSDM 2D Line (K8944) Sambutan-8 Sambutan-7 6

7 Four additional wells from Sambutan Field have led to enhanced understanding of reservoir and hydrocarbon distribution Petrophysical analysis was carried out on newly acquired well data from the Sambutan field, historic well logs of Sambutan 7 and 8 and existing Naga Utara 1 and 2 data. Concluded SBT-8 likely logged moveable hydrocarbons. Known production data from Sambutan Field shows maximum rates of 10MMFCD 50 bcf estimated resource in Naga Utara upper and lower reservoirs Sambutan Gas Production Sambutan Production History SBT-06 flowed Started SBT Compressor Sambutan Production Forecast Bscf Sambutan Rate Q, MMscfd May-07 Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov Bscf Kum.Production Gp, BCF 2.19 Bcf MONTH SBT Gas Rate Tot.Kum.Production Kum.Prod.Forecast 7

8 Rapid Commercialisation through existing infrastructure Existing underutilised Sambutan gas processing facility and export pipeline approx. 300 m from Naga-Utara 4 well location Export pipeline from Sambutan to PLN power plant Significant cost bank provides attractive economics PLN Plant Sambutan Gas Plant Mahakam Hilir PSC Cue 100% Sambutan Gas Plant 8

9 Upside potential >100bcf in under explored permit 0 wells drilled in Western Permit Putak Anticline Strategy is to take Naga Utara to POD and start commercial production Sanga Sanga PSC 420 mmbbl produced > 100 wells drilled in neighbouring structural trend Pelarang Anticline Underexplored only 4 wells drilled within permit compared with hundreds on adjacent fields like Sanga Sanga anticline New approach integrating Gravity modelling, Surface mapping, Structural Modelling and well control to reveal the remaining high potential in the Permit 4 wells drilled in Eastern Mahakam Hilir permit 9

10 Summary Mahakam Hilir PSC Farmin Opportunity 50 Bcf recoverable gas Prospect next to producing Sambutan Field New onshore prospectivity revealed in Mahakam Delta Permit Naga Utara-4 Appraisal well planning underway Low cost well to 3,000 feet, close to infrastructure, low lead time to production In success case, expect to go to POD with NU-4 well Significant cost bank provides attractive economics High upside ~>100 s Bcf potential in the remaining under drilled Permit remains to be tapped Cue 100% equity. Up to 40% available for the drilling of Naga Utara-4 well 10

11 Level 19, 357 Collins Street, Melbourne VICTORIA AUSTRALIA 3000 P. (61) F. (61) E. mail@cuenrg.com.au W.