CBM Asia to start commercial gas production
Wednesday, January 9 2013 - 01:33 AM WIB
Canada-based firm CBM Asia Development Corp said that this year it will start its first commercial production of gas, and upgrade resources, which will potentially generate revenues.
The company said in a press statement on Tuesday that following its exploration successes in 2012, it has designed its 2013 work program to develop two production pilot programs---one in the Barito basin and the other in Central Sumatra---and to start dewatering activities at the Sekayu PSC and the Kutai West PSC.
The production pilots are planned in areas where CBM Asia holds operatorship, thus avoiding reliance on outside partners.
"2013 will be an impactful year for us. With the number of core wells drilled and dewatering tests conducted by us and other CBM companies in Indonesia we believe there is enough geological evidence to support an accelerated drive into small-scale production pilots.," said CBM Asia President Director and CEO Alan Charuk.
?We are currently gearing our operations towards that goal and with the Company in operatorship control we can reduce unforeseen delays as witnessed at the non-operated Sekayu PSC in 2012,? he added.
Production pilots have the ability to generate revenue, establish and/or upgrade resources and provide the empirical evidence of commerciallity.
?Furthermore we believe the change in our derisking strategy coupled with our Central Sumatra farm-out agenda substantially reduces future capital requirements and will ultimately increase return on investment," he said.
Based on its 2013 work program in Barito basin it will start drilling in June. In Central Sumatra basin, it is now in a stage of negotiations on rig deployment and drilling will commence in October. If production rates are satisfactory CBM Asia plans to sell pilot gas to a small-scale power production unit generating first revenue and establish a resource calculation for the block. CBM Asia is responsible for 100 percent of the capital cost.
The dewatering operations in Sekayu PSC and Kutai West PSC are aimed to prove production potential and the extent of the coal seam sweet spots in the blocks.
Editing by Benget Besalicto Tnb.