SANTOS-LED JOINT VENTURE APPROVES US$100M GAS PROJECT

MELBOURNE, Dec 20 (Bernama)-- The Santos Ltd-led Wortel gas project offshore
East Java, Indonesia, has been approved for development by the joint venture
participants.

The US$100 million joint venture, named the Sampang PSC, comprises Santos
with a 45 per cent interest, Cue Energy Resources Ltd with a 15 per cent stake
and Singapore Petroleum Sampang Ltd, which holds the remaining 40 per cent.

The first gas production from Wortel is expected around the end of next
year.

Recoverable gas volumes are assessed to be 118 billion cubic feet (bcf)
gross "in a mid case", Cue said in a statement Monday.

Cue said its share of about 16 bcf represented an increase in its gas
reserves of about 140 per cent.

The Wortel development is expected to consist of a small wellhead platform
with two gas production wells and a pipeline of about 10km in length to the
existing Oyong facilities, also operated by the Sampang PSC.

Gross gas production rates from Wortel and Oyong are expected to be around
90 million standard cubic feet per day at plateau rates.
-- BERNAMA