Matthew Boyall, CEO of Cue Energy Resources which has a 15% stake in the Sampang PSC, told Energy News that the prospect was an important one as a near-field exploration well in a good gas-producing field.

 

"The Q4 timing is the quickest we can get a rig and all the operational approvals ready," he said.

 

"That's part of our strategic disciplined growth leg, where we will maintain exploration where it fits our size and scope, and exploration at our producing properties such as Sampang is the best place to start for us."

 

There could be further upside, as he said the joint venture was looking at further opportunities within the PSC.

 

Operator Santos (45%) has plenty of experience operating well drilling in the Sampang PSC and the adjoining Madura Offshore PSC, including two wells in 2016.

 

Singapore Petroleum Company has the remaining 40% of the Sampang PSC.

 

Paus Biru-1, located 27km east of the producing Oyong gas field, will test a four-way dip structural closure targeting the Pliocene Mundu Formation analogous to the hydrocarbon producing zone in the Oyong and Wortel gas fields.

 

Having located the well from 3D seismic mapping with visible amplitude anomalies, the JV is now undertaking geophysical and geotechnical site surveys to determine the well's final location.

 

The well will be drilled to 650m depth in about 48m of water using a jack-up rig which is still being sourced.

 

If Paus Biru-1 is successful, a horizontal development well will be drilled and tied into Oyong and the Grati onshore gas processing facility.

 

Cue is trading at 7.3c, while Santos was up this morning at $5.23.