Muara Enim well-2 permeability tests encouraging
Wednesday, October 17 2012 - 07:58 AM WIB
Australia-listed firm NuEnergy Gas Ltd announced preliminary permeability tests at the Maura Enim well-2 have shown encouraging results, supporting its target of securing initial CBM production in the fourth quarter and gas-to-power sale deal early next year.
In its latest operation update report, NuEnergy said that preliminary tests have shown 11 millidarcy (mD) of permeability, a key result in an CBM production as it indicates that gas can flow from a coal seam at a rate which will support an economic project.
Dewatering process will soon follow with initial gas production and installation of small scale power generation unit scheduled to take place before the year ends, it said. Afterwards, it expects to complete negotiations with the state owned utility firm PT Perusahaan Listrik Negara (PLN) on the gas sales.
On prices, the company said that a minimum gas price of $7.5 per mmbtu is guaranteed by the upstream authority BPMIGAS and prices for small scale power supply into the low voltage grid (which a also regulated) are in the order of US$0.12/kwh.
Editing by Dadan Wijaksana