Indonesia MAHATO PSC The PB field in the Mahato PSC continued to be a strong contributor to Cue’s results during the year, generating $19.7 million in revenue, a 5% increase over the previous period. During the year, six wells were drilled, completing the June 2022 Field Development Optimisation plan of 12 wells, bringing the total to 23 wells in the field. After reviewing field performance, further development was proposed by the Operator and approved by SKK Migas, the Indonesian upstream regulator. The approved Field Development Optimisation (OPL) Phase 2 includes drilling 14 new development wells, converting an existing production well to a water injection well, and constructing three new drilling locations. Additional production facilities and in-field pipelines will also be constructed. Drilling has commenced and is expected to continue for 12 to 18 months. Two exploration wells are being planned in the Mahato PSC, targeting independent prospects near the PB field. In October 2023, Texcal, the Mahato PSC operator, and Riau Petroleum, an Indonesian local government-owned entity, signed an agreement to transfer a share of the Mahato PSC’s Participating Interest to Riau Petroleum, as required by the Production Sharing Contract (PSC) and government regulations. The Government approvals process for this transfer is ongoing but the joint venture accounting for Cue’s participating interest reduced from 12.5% to 11.25% effective 1 November 2023. Financial and operations CUE INTERESTS Cue 11.25% Operator Texcal Energy Mahato Inc SAMPANG PSC The Oyong and Wortel gas fields generated $8.5 million in revenue to Cue from long-term, fixed-price contracts for gas sales to Indonesia Power’s Grati Combined Cycle Gas Power Plant. Development planning for the Paus Biru gas discovery continued throughout the year. The Sampang PSC term expires in 2027 and the permit operator, Medco Energi, is in discussions with the Indonesian Government regarding an extension to the permit term and amendments to the PSC. The PSC amendments and extensions are key steps required for the joint venture to proceed with considering a Final Investment Decision (FID) on the project. The Paus Biru development is planned to include a single well and wellhead platform at the Paus Biru gas field, with a 27km subsea pipeline connecting the well to existing infrastructure at the Oyong field. CUE INTERESTS Cue 15% Operator Medco Energi 8 Cue Energy Resources Limited Annual Report 2024
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