AWE says RI shale gas study approved

By Romel S. Gurky

ASX-listed AWE Ltd said that joint study into shale gas potential in central Sumatra has been completed and approved by the Indonesian government as the company hopes to be able to win contract for the gas block.

?The AWE joint study of the unconventional potential of the Jembar-Rimba Area, onshore central Sumatra, was completed and approved by MIGAS,? the company said in a presentation material seen Tuesday referring to the Indonesian Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources.

The company, which in 2012 was among of the four companies granted by the Indonesian government rights to carry out shale gas studies in four blocks, said it has made formal application to obtain operatorship of the shale gas block.

?If the area is offered in a future unconventional oil and gas bid round as a Direct Offer Block, AWE would then have the right to match any offer submitted for the block,? the company said.

Editing by Reiner Simanjuntak