Cue holds a 11.25%* interest in the Mahato PSC located in Central Sumatra, Indonesia. Oil production from the PB field within the PSC has been ongoing since early 2021, following the drilling of discovery wells in late 2019. The Central Sumatra Basin hosts some of Indonesia's largest oil fields, including the Minas and Duri fields.
Following successful exploration in late 2019, the PB field within the Mahato Production Sharing Contract (PSC) saw the initiation of commercial oil production in early 2021, beginning with the first well, PB-1. The Government of Indonesia has granted approval for a Plan of Development (POD), encompassing a total of eight wells.
Under the current development plans, twenty production wells and three injection wells are approved for the PB field. Including the recently completed wells, there are currently eighteen oil production wells and one water injection well in the field. The remaining wells are expected to be drilled during this calendar year. Production performance and field analysis will then be undertaken, with the potential for more development wells to be proposed.
The FY24 outlook includes several key developments. First, PB-23 and PB-13 have been completed. Additionally, PB-12 has been drilled and is currently in the testing phase. Furthermore, the plan involves drilling one development well and two water injector wells. We aim to continue to identify and assess further exploration opportunities. We will also assess further development drilling.
The Mahato PSC Joint Venture partners are:
| Texcal Energy Mahato (Operator) | 72.25% |
| Central Sumatra Energy | 11.5% |
| Riau Petroleum | 5.0% |
| Cue Energy | 11.25%* |
* 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.