Cue Energy Limited announced that the high impact exploration well BA-01 is preparing for drilling in the Mahato PSC (Production Sharing Contract). Spudding of the well is expected to commence this quarter, subject to final environmental clearances. The well aims to test the presence of hydrocarbons in the BA prospect, with a primary target of the Miocene-age Telisa Formation sandstone reservoir at a depth of 900ft.

A secondary target is the Menggala Formation, expected at approximately 2500ft. Both targets are producing reservoirs in the Central Sumatra Basin. BA-01 is planned as a vertical well approximately 2800ft in depth and will be suspended if successful.

The Operator of the Mahato joint venture, Texcal Mahato, has assessed the following Prospective Resource estimates for the BA prospect. The geological chance of success of the BA-01 well has been assessed by the Operator as 38%. The BA prospect is one of a number of prospects and leads identified in the Mahato PSC, which could be suitable candidates for future drilling.