Cue Energy Resources (ASX:CUE) said the PB-42 development well in the PB field at its Mahato production sharing contract in Indonesia has been successfully drilled into the Bekasap reservoir, producing at a rate of 520 barrels of oil per day on a 100% basis, exceeding pre-drill expectations, according to a Friday Australian bourse filing.

Further development of the PB field is expected to commence in the fourth quarter of 2026, subject to approval of the Phase 3 development plan by the Indonesian Government, the filing added.

Drilling of PV14, the first well in a two-well Palm Valley drilling campaign, began in late July, with gas observed and flared while air-drilling through the target reservoir, with first gas sales targeted for October 2026 subject to successful completion, tie-in, commissioning and satisfactory well performance, it added.

Cue holds an 11.25% interest in the Mahato production sharing contract and a 15% participating interest in the Palm Valley permit.