Next Fuel completes drilling at coal-to-gas project in Sumatra
Wednesday, October 3 2012 - 01:15 AM WIB
Next Fuel Inc and its Indonesian licensee have completed the drilling and initial nutrient injections at their coal-to-gas (CTG) projects in southern Sumatra, the US firm said.
?We are very encouraged by the progress we are making in both Indonesia and China,? Next Fuel CEO Robert Craig said in a statement issued on Tuesday.
?I recently returned from our project site in Indonesia, where 13 of our 16 wells displayed detectible natural gas after only four weeks of injections. These early results serve as a testament to the viability of our technology,? Graig added.
Next Fuel, Inc. is US-based firm which develops and commercializes "clean" energy and related environmental technologies.
The company's CTG technology converts the dirtiest fossil fuel, low-grade coal or lignite, into clean-burning natural gas through the introduction of nutrients, via a low-pressure pumping system, to the wide range of microorganisms that naturally exist in coal deposits. The proprietary nutrients stimulate the microorganisms, which in turn consume the carbon-containing compounds in the coal and "exhale" biogenic natural gas as a byproduct.
Next Fuel has entered into a Development and Licensing agreement with undisclosed privately owned company in Indonesia, which grants, for a period of ten years, rights to use the company's CTG technology within the license territory in southern Sumatra. Next Fuel will receive a 10% gross royalty on gas produced from all wells drilled by the partner in the license territory, based upon gas prices that are indexed to the local market in Sumatra.
Editing by Reiner Simanjuntak