EMP finds very good test result at Sangatta II CBM block
Tuesday, June 23 2015 - 03:35 AM WIB
IDX-listed PT Energi Mega Persada Tbk. (EMP) has found a very good test result at the Sangatta II CBM block in East Kalimantan, according to a top official of the firm.
"We've done coring and wells testing, and the test result of some wells is very good," EMP's President Director Imam Agustino told Petromindo.com, without providing details.
According to Imam, the result is one of the best in Indonesia to date. He hopes that his company could continue to explore so that at some point they will do a CBM production at the block.
He added that his company is still waiting for the government to review the terms and conditions now applied on CBM blocks.
"The review is necessary because CBM block is different from conventional gas block in terms of volume of production. Production of one CBM well may not be more than 1 mmscfd, compared with production of a conventional gas well that can reach 10-15 mmscfd,? he explained.
The Sangatta II CBM PSC is 60 percent owned and operated by PT Visi Multi Artha (VMA), while the remaining is held by PT PHE Metana Kalimantan-B, a subsidiary of state owned oil and gas firm PT Pertamina (Persero). The CBM block was awarded to VMA in May 5, 2009.
EMP and coal miner PT Bumi Resources Tbk. (BUMI), both listed on the Indonesia Stock Exchange, jointly own VMA with a share composition of 70 percent and 30 percent.
Editing by Johannes Simbolon