Santos, Cue find oil in E. Java

Santos, Cue find oil in E. Java

CANBERRA (Dow Jones): Australian energy companies Santos Ltd. and Cue Energy Resources Ltd. have discovered oil and gas during drilling of the Oyong-1 well in east Java.

Santos is the operator and holds a 45 percent stake in the well, while Cue has a 15 percent stake and Coastal Indonesia Sampang Ltd. has the 40 percent balance.

Cue said Santos reported a 110-meter gross column of gas with a possible 22-meter gross column of oil from 813 meters in the well, located 80 kilometers east of Surabaya city.

A wire line sample obtained at 928.2 meters returned 10.5 liters of oil of 41 API and 61 cubic feet of gas, Cue said.

Santos will drill ahead to evaluate the other objectives of the well, total depth of which is planned at 2,271 meters, Cue said.