Churchill tenders E. Kalimantan CBM project seismic verification programme

UK miner Churchill Mining Plc said on Monday it is tendering a seismic verification programme to confirm the data used in the model to develop its Sendawar coal bed methane (CBM) project in East Kalimantan.

?Following the compiling and modeling of data on the Sendawar CBM project, Churchill is tendering out a seismic verification programme to confirm the data used in the model,? the company said.

In September 2007 Churchill (70%) was granted a CBM License for the project along with joint venture partner PT Ridlatama Mining Utama (30%) ? the first of its kind to be granted by the Indonesian Government through direct appointment.

"In the meantime, Indonesia's CBM regulations have not yet been completed or issued and Churchill will only be in a position to commit to signing a PSC, subject to completion of technical due diligence, when the new regulations have been formalised and considered workable by Churchill," it added.

The Sendawar CBM project is located in a coal basin with potential of 5 trillion cubic feet of gas. (denny)