McLaren to fund CBM exploration in S. Sumatra

Ontario-based firm McLaren Resources Inc. will inject some US$10 million in fund to explore coal-bed methane (CBM) owned by PT Energi Pasir Hitam Indonesia (Ephindo) in South Sumatra, Investor Daily reported Monday.

Ephindo?s president director Wahyudin Y Ardiwinata said in Jakarta over the weekend that besides McLaren, Ephindo would also team up with UK-based oil, gas firm Serica Energy to develop CBM in the same site.

According to Wahyudin, the initial drilling of at least four wells needs an investment of some US$ 30 million.

?A seismic study is now underway before conducting further drilling. Foreign investors are financially and technologically capable of developing CBM,? he said. (*)