Santos, Cue suspend Oil Wells

Santos, Cue suspend Oil Wells

CANBERRA (Dow Jones): Australia-based Cue Energy Resources Ltd., said Friday two wells, Oyong-1 and Oyong-2, offshore east Java are to be suspended to allow for future oil and natural gas production.

Australia-based Santos Ltd. is the operator and 45 percent stakeholder in the wells, while Cue has a 15 percent stake and Coastal Indonesia Sampang Ltd. the 40 percent balance.

Drilling encountered a 110 meter natural gas column between 813 meters and 923 meters overlying an approximately 35-40 meter oil column, Cue said in a statement.

Testing between 927 meters and 931 meters, the well flowed 1,132 barrels of oil and 2.5 million cubic meters of gas a day through a 28/64 inch choke, it said.

A later test of 855-873 meters flowed 12.4 million cubic feet a day of gas, which contained 0.6 percent carbon dioxide and no hydrogen sulfide, it said.

The two wells are near each other 80 kilometers east of Surabaya.