EWC to conduct drilling to prove-up reserves

ASX-listed energy firm Energy World Corporation Limited (EWC) reported on Tuesday that the seismic program for the Sengkang gas field in Sengkang PSC onshore South Sulawesi has been agreed with BPMIGAS and contractors have been appointed to undertake the program. Mobilisation on site is August 2008.

Once the seismic has been completed and reviewed, the plan of development will be produced for the Sengkang gas field to further build up the gas reserves from the extensive gas resources in the Sengkang PSC. The drilling program will be undertaken in 2009 and 2010, the company said.

Currently, all production from Sengkang gas field is piped to the Sengkang 135-MW power plant, which is also owned by EWC.

EWC is also planning to build a mini-LNG plant in Sengkang.

The company, despite not yet securing approval from BPMIGAS, had ordered long-lead items for the LNG plant. It targets construction work to commence end of 2008 with target commissioning of the first 500,000 tons per annum (TPA) train in the final quarter of 2009.

During the last 6 months, the Company has progressed discussions with a number of LNG buyers in the Peoples Republic of China. Indonesia. Japan and Philippines, with whom it has already signed Memorandums of Understanding (MOU?s). Within the next 6 months, we aim to convert these MOU to firm Heads of Agreements and LNG Gas Sales Agreements, it said.

EWC holds 100 percent interest in Sengkang PSC. (alex)