Dart Energy updates Indonesia CBM ops
Wednesday, October 31 2012 - 03:24 AM WIB
EXPLORATION PROJECTS
Sangatta West (East Kalimantan)
Preparations for recompletion of three pilot wells continued during the quarter. These wells will supply gas as part of an early development pilot-to-power project for electricity sold to the local Sangatta township. Operations are expected to commence in the fourth quarter of 2012 and gas sales anticipated in the first half of 2013.
The initial commercialisation of gas is the first step towards the longer-term strategy of transporting gas to the Bontang LNG plant, which is currently operating below capacity.
Tanjung Enim PSC (Sumatra)
During the quarter, preparations for well workovers and hydraulic stimulation of pilot wells were progressed. Activity is expected to commence in the fourth quarter of 2012 with first gas flows expected in early 2013. The wells will undergo long-term production testing via a pilot-to-power project.
Dart Energy and EuroAsiatic, an engineering, procurement and construction (EPC) company have formed a joint venture company to perform the role of an Independent Power Producer (IPP) and produce electricity via a 2MW gas engine. Commercial discussions and legal preparation work in relation to the pilot-to-power project continued during the quarter
Bontang Bengalon (East Kalimantan)
On 5 September 2012, Dart Energy was awarded the Bontang Bengalon PSC. This follows a formal application for the block that was submitted in July 2012 and a joint study that was previously conducted with the Government of Indonesia. The formal signing of the PSC is expected to take place before the end of the year.
Bontang Bengalon is located in the middle part of the Kutei Basin in East Kalimantan, covering an area of 411km2. The block is divided into two portions with the southern area located adjacent to the Bontang LNG facility and the northern area located 62 kilometres north of Bontang and adjacent to Dart Energy?s existing Sangatta West PSC.
Bontang Bengalon is considered prospective given the significant exploration and appraisal work undertaken at the adjacent Sangatta West block where reserves have already been established. During the first 3-year exploration period, Dart Energy intends to drill three core wells and one pilot well as part of the committed work program.
Dart Energy holds 100% working interest and operatorship in Bontang Bengalon, which provides flexibility to introduce new partners to the project over time.
Muralim PSC (Sumatra)
Drilling in the Muralim block commenced in June 2012 and during the quarter two exploration wells have been completed. Core samples were retrieved from the Palembang coal measures and analysis is underway.(end of excerpt)
| Project | Work to Date | Monetisation | Future Work Program |
| Sangatta West | 3 core wells and 4 pilot wells completed | pilot to power initialy, leading to potentially larger sales to Bontang LNG facility | Deliver commercial gas flows and install power generation facilities as part of pilot-to-pilot power scheme |
| Preparation for long term production testing | Regulatory approval secured for US$ 7.90 per MMBtu gas price under pilot-to-power scheme | Undertake field development planning | |
| Resources and reserves independently certified | ? | Pilot testing during 2013 | |
| Tanjung Enim and Muralim | 4 core wells and 3 well pilot wells completed | Small scale pilot-to-power project | Deliver of commercial gas flows and installation of power generation facilities |
| Preparation for long term production testing at Tanjung Enim | Potentially larger gas sales nearby power generation facilities/pipeline | Conduct independent reserves certifications | |
| Resources independently certified | ? | Undertake field development planning |