Dart Energy updates Indonesia CBM ops
Monday, January 30 2012 - 01:27 AM WIB
1. ACCESS AND EARLY-STAGE EXPLORATION ACTIVITIES
MURALIM PSC (Sumatra, Indonesia)
Dart Energy entered into a PSC in relation to the Muralim block (formerly known as the Kebur block) in South Sumatra on 3 December 2010. The participating interest is equally shared between Dart Energy and Medco Energi, an independent Indonesian oil & gas company, with Dart Energy holding the operatorship. The PSC covers an area of 983 km2 in the South Sumatra basin.
Dart Energy?s proposed work program received regulatory approval from the Government of Indonesia in August 2011 and Dart Energy is currently in the process of procuring necessary land, equipment and services to commence drilling within 1H 2012. Dart Energy has planned afour core well program and subject to results, an appraisal program comprising up to four pilot wells as part of the 2012 drilling campaign.
TANJUNG AREAS (South Kalimantan, Indonesia)
During the quarter, due diligence work continued on two Tanjung areas with a view to securing new licenses through both direct award and farm-in. Award of new PSCs is targeted for 1H 2012.
BONTANG BENGALON (East Kalimantan, Indonesia)
A joint study with the Government of Indonesia is underway for the Bontang Bengalon block. The PSC bid process for this block will be subject to the results of this joint study and will likely to take place in early 2Q 2012. This block consists of 2 areas, one is located adjacent to the Sangatta West northern boundary and the other one is located in proximity, to the west of, the Bontang LNG plant.
2. APPRAISAL & PILOT ACTIVITIES
SANGATTA WEST PSC (East Kalimantan, 24% interest)
Following the completion of a four well pilot program at Sangatta West in the previous quarter, the wells remained shut-in during the quarter while Dart Energy?s joint venture partner deploys surface equipment and infrastructure required for long term production testing. This testing will provide detailed information to allow for the field and equipment to be sized for accelerated development. Pilot wells dewatering and production testing is expected to commence in early 2Q 2012.
TANJUNG ENIM PSC (South Sumatra, 45% interest)
Two core wells have been previously drilled. During the quarter, results were analysed and found to be encouraging. Drilling of three pilot wells commenced in December 2011 and is expected to be completed during 1Q 2012. This will allow for early assessment of production capacity. Dart Energy is currently evaluating a pilot-to-power project to use the gas produced from the pilot wells.
3. MONETISATION ACTIVITIES
INDONESIA (Sangatta West, East Kalimantan & Tanjung Enim, South Sumatra)
Commercial discussions and legal preparation work in relation to the pilot-to-power scheme for Sangatta West and Tanjung Enim continued during the quarter. (end of edited excerpt)