Flaring commences at NuEnergy?s Muara Enim CBM pilot project
Wednesday, October 24 2012 - 01:58 AM WIB
Australia-listed NuEnergy Gas Ltd said that the pilot production project at the Muara Enim #2 well site in South Sumatra has commenced operations and dewatering.
?Water production is building at this time and is currently at approximately 250 barrels per day, in line with expectations. Coal Bed Methane (CBM) production commenced at 0430 EST today, 14 hours after the commencement of dewatering operations,? the company said in a statement Wednesday.
This early gas production and flaring result significantly exceeds expectations and the NuEnergy team is currently monitoring and evaluating the build-up of gas pressure and flow rates for reservoir modelling purposes.
The peak CBM gas production rate from the pilot production well based on permeability data is expected to be between 0.25 and 1.25 million standard cubic feet per day, the company said.
Initial testing of water quality has also confirmed salinity within drinking wafer standards at 400 parts per million. This result is positive news in terms of future development and production costs, it added.
?The commencement of dewatering and flaring at this pilot well represents a significant milestone as it takes the company to the next step in proving the significant intrinsic value of NuEnergy?s Indonesian assets,? said CEO of NuEnergy Gas, Christopher Newport.
?The pilot project is now in operation and we are focused in the coming months on: proving peak gas flows from the Suban and Man gus coal seams; demonstrating CBM well production profiles for water and gas; verifying gas and water quality on a production basis; demonstrating proof of concept and the commerciality of CBM gas production and sales via a pilot gas to power project of 3-4 megawatts; and certifying proved CBM reserves, recouping past costs and booking first revenue,? he added.
Editing by Reiner Simanjuntak