Dart Energy updates Indonesia CBM ops
Tuesday, January 29 2013 - 03:00 AM WIB
EXPLORATION PROJECTS
Bontang Bengalon (East Kalimantan)
During October 2012, Dart Energy signed a PSC in respect of Bontang Bengalon Block awarded to it in September 2012. 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.
Bontang Bengalon is located in the middle part of the Kutei Basin in East Kalimantan, covering an area of 411 km2. 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.
During the first 3-year exploration period, Dart Energy plans 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)
Following drilling of two exploration wells in the previous quarter, review and analysis of core samples is ongoing and the results are expected during 1Q 2013. Subject to results, Dart Energy expects to undertake appraisal drilling during 2H 2013.
KEY PROJECTS UPDATE
Sangatta West (East Kalimantan)
Work-overs were carried out on three pilot wells during the quarter and an additional pilot well is scheduled to be drilled in 1Q 2013. Following completion of these wells, production testing will be carried out. Subject to successful testing, these wells are expected to supply gas as part of an early development pilot-to-power project for electricity sold to the local Sangatta township.
Tanjung Enim PSC (Sumatra)
During the quarter, well work-overs were carried out to allow for production testing during 1H 2013 with a planned pilot-to-power project to commercialise pilot gas production in 2H 2013.
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 2 MW gas engine. Commercial discussions and legal preparation work in relation to the pilot-to-power project continued during the quarter. (end of excerpt)
| Project | Work to Date | Monetisation | Future Work Program |
| Sangatta West | - 3 core wells and 4 pilot wells completed
- Preparations for long term production testing - Resources and reserves independently certified |
- Pilot-to-power project initially, leading to potentially larger sales to Bontang LNG
- Regulatory approval secured for US$7.90 per MMBtu gas price under pilot-to-power scheme |
- Pilot testing during 2013 Install power generation facilities as part of pilot-to-power scheme
- Field development planning |
| Tanjung Enim & Muralim | - 4 core wells and 3 pilot wells completed
- Preparations for long term production testing at Tanjung Enim - Resources independently certified |
- Small scale pilot-to-power project
- Potentially larger gas sales to nearby power generation facilities / pipeline |
- Pilot testing during 2013
- Installation of power generation facilities - Independent reserves certifications - Field development planning |