Australian joint venture partner Cue Energy said the Naga Utara-2 probe was spudded on Saturday in the Mahakam Hilir production sharing contract, located in the onshore portion of the Kutei basin, about 10 kilometres north-east of the town of Samarinda.

It is the third well to be drilled by the joint venture and has been designed to test gas shows seen in Miocene-aged sandstones that were not fully evaluated with the previous Naga Utara-1 well due to mechanical problems.

Naga