CBM Indon, PTBA sign C. Sumatra CBM agreement

Australian-listed firm NuEnergy Capital Limited announced on Friday that CBM Indon Limited has entered into a contract with state-owned coal miner PT Tambang Batubara Bukit Asam (PTBA) to conduct a Joint Evaluation and Study of an area comprising of 2,012 km2 in Central Sumatra.

?This acreage is contiguous with Indon CBM?s existing Rengat coal bed methane Production Sharing Contract (PSC) located in Central Sumatra and is considered to have excellent potential for coal bed methane production. Numerous coal seams at the optimal depth have been identified from existing seismic and oil and gas wells in the area. Further, the area is adjacent to the coal mine in this area currently being operated by PTBA,? the company said in statement.

This area will be subject to a joint study and evaluation for the coal bed methane production potential over the next few months and with encouraging results, an application for a PSC will subsequently filed with the government regulator.

NuEnergy is in the process of acquiring Indon CBM and hence, its coal bed methane license areas in Indonesia. The areas include two PSC areas in South and Central Sumatra and two Joint Study and Evaluation Application areas in South Sumatra and Tarakan, respectively.

The agreement will result in Indon CBM having in excess of 7,000 km2 of high quality coal bed methane acreage covered by either PSC or Joint Study Area Applications, it added. (kanti)