Dart Energy updates Indonesia CBM ops
Tuesday, July 31 2012 - 01:58 AM WIB
EXPLORATION PROJECTS
Muralim PSC (Sumatra)
Dart Energy was awarded the Muralim PSC 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 first core well was spud in June 2012 and drilling is expected to continue throughout 3Q 2012.
New Indonesian new Licence areas (East and South Kalimantan)
A joint study with the Government of Indonesia for the Bontang Bengalon block was completed during the quarter. This block consists of two discrete areas, the first is adjacent to the Sangatta West block and the other further south, adjacent to the Bontang LNG plant. Dart Energy has since made a formal application for this block in July 2012.
KEY PROJECTS OVERVIEW
| KEY PROJECT OVERVIEW |
|||
| Sanggata West | - 4 core wells and 4 pilot wells completed | - pilot to power project initially, leading to potentially larger sales to Bontang LNG facility | - delivery of commercial gas flowes and installation of power generation facilities in support of fisrt revenues via pilot- to power scheme by year end |
| - preparations for long term production tresting | - Regulatory approval secured for US$7,90/mmbtu gas price under pilot-to power scheme | ||
| Tanjung Enim | - 2 core wells completed | - Pilot to power project initially, leading to larger sales to near by power generation. pipeline | - Delivey of? commerchial gas flows and installations of power ganeration facilities in support of first rvenues via- pilot to power scheme by year end |
| ? | - 3-welll pilot drilling coompleted | ||
| Muralim | - Coomenced drilling first core well | - preliminary discussions with local power generation company for off take | - Drilling 4 core and 3 pilot wells |
KEY PROJECTS UPDATE
Sangatta West (East Kalimantan)
During the quarter, SWCI, the joint venture company held by Dart Energy (50%) and Ephindo (50%), received approval for the Sangatta West pilot-to-power gas price of US$7.90/mmbtu from the Minister of Energy and Mineral Resources. This represents an important milestone, establishing an attractive gas price for the proposed pilot-to-power scheme.
Four wells will supply gas for conversion into electricity for the local Sangatta township. Preparations for well workovers to bring these wells on production were progressed and rig contracts were tendered. Planning and design of production and water handling facilities have been completed and construction is expected to commence in 3Q 2012 upon receipt of permits from the local authorities. The project is expected to commence production by year end.
Tanjung Enim PSC (Sumatra)
Drilling of three vertical pilot wells was completed during the quarter and stimulation of the wells is expected to take place in 3Q 2012. The wells will undergo long-term production testing via a pilot-topower project, which will produce up to 2MW of electricity to be sold into the local grid.
Commercial discussions and legal preparation work in relation to the pilot-to-power project continued during the quarter. (end of excerpt)