Cue, a junior partner in the well with a 3.29% stake, said operator Oil Search started the drilling program last week and plans to drill to a depth of 2715m.

“Depending on results, it is planned to complete the well as an oil producer, or as a water injector to provide pressure support to SE Gobe-11,” the company said.

Last month, Cue advised that the SE Gobe-13 development well side track in PNG had been completed as a water injector to provide pressure support for the Iagifu sandstone reservoir.

Participants in the SE Gobe unit are Australian Gas Light (27.35%), Oil Search (25.55%), Southern Highlands Petroleum (23.69%), Santos (9.39%), Ampolex (5.95%), Cue, Merlin Petroleum (2.78%) and Petroleum Resources Gobe (2%).