NuEnergy completes coring of Muara Enim 1st well
Monday, April 30 2012 - 11:09 AM WIB
Australia-listed NuEnergy Gas Limited (NGY) has successfully completed coring and logging of first well on its Muara Enim production sharing contract (PSC) in South Sumatra, reaching a depth of 733 meters and proving a total of 38.2 meters of net coal seams in the Suban and Magnus coal formations.
The company said in a press statement on Monday that results of the first well were consistent with the previous estimates for prospective gas-in-place provided by PT Trias Energy Perkasa (2011) and RISC (June 2010).
It said that it was currently drilling the second well in the Muara Enim PSC program. This well is currently at a depth of 712 metres, has proven 43 meters of net coal seams thus far and is planned to be drilled to a depth of 1000 meters to evaluate the deeper Petal coal formation. The drilling of the 2nd well was commenced on 1 March 2012.
The 2nd well has thus far proved 43 meters of net coal seems in the Magnus and Suban coal formations. It is planned to be drilled to a depth of 1,000 meters to test the deeper Petai coal formation which is expected to be over ten meters thick.
When completed NuEnergy plans to convert the Muara Enim second well to a pilot production well and commence early gas production by late 2012.
Several other operators of Coal Bed Methane (CBM) acreage in the South Sumatra Coal Basin already have pilot programs in operation and are proving the prolific extent and thickness of the Suban coal seam, high permeability and early gas production.
These early results, the large gas supply deficit relative to demand in the Sumatra gas grid and recent gas prices in Indonesia for CBM in the order of $7.50/MMBTU are providing strong indicators for the future commerciality of NGY?s CBM acreage in Indonesia.
Netherland Sewell and Associates Incorporated (NSA I) are currently working with NGY and JMJ Petroleum to generate an independent resource certification confirming the prospective and contingent gas resources of all of NGY?s Indonesia CBM PSC?s.
Editing by Benget Besalicto Tnb.