NuEnergy commences process for testing of abandoned wells in Muara Enim

By Peni Pedriawan

ASX-listed firm NuEnergy Gas Limited has commenced the application process for the testing of abandoned but not plugged conventional oil and gas wells within the Muara Enim PSC in South Sumatra.

So far the application has been well received by the PSC joint venture partner, PT Pertamina and upstream authority SKK Migas, the company said in a quarterly report on Wednesday.

It also said that a tender process for the drilling and operations of the planned pilot wells at the Muara Enim PSC was finalized in the second quarter. The drilling contractor will be announced during the next quarter.

Testing of abandoned wells as compared to drilling and testing is expected to lead to significant savings across all of NuEnergy?s PSC?s and generate basin wide understanding of all coal seams that can produce gas.

Reviewing the logs of these wells and testing them will also assist the company in identifying underlying conventional oil and gas structures such as anticlines which may act to stimulate higher gas content and permeability.

Editing by Dadan Wijaksana