NuEnergy completes drilling of 2nd CBM production well

By Rikordias Dominius

Australia-listed coal-bed methane (CBM) developer NuEnergy Gas Limited reported on Wednesday that it has completed the drilling of the TE-B06-002 well as part of its early gas sales initiative within the Tanjung Enim Production Sharing Contract (PSC) in South Sumatra. This marks the second of four planned CBM wells under NuEnergy’s development program, aimed at achieving initial gas sales of 1 MMCFD.

Drilled to a depth of 424 meters, the TE-B06-002 well intersected five coal seams with a cumulative thickness of 47.3 meters, located between 251 and 374 meters deep. Gas shows were observed during logging, confirming the presence of CBM across multiple seams. This positive result follows the success of the first well, TE-B06-001, and supports the company’s move toward the first commercial CBM development in Indonesia, NuEnergy said.

Read also : NuEnergy commences drilling of 2nd CBM production well

As part of the project’s progression, NuEnergy has installed a Progressive Cavity Pump (PCP) system on the TE-B06-002 well. This system incorporates real-time remote monitoring and control technology, allowing for efficient management of production parameters and minimizing downtime. The PCP system is a crucial step in optimizing well performance and ensuring stable gas production.

Gas from the TE-B06-002 well will be collected at the surface facility and directed to the gas processing facility once target production levels are achieved. The drilling rig is now being moved to the third well site as part of the continued development of the Tanjung Enim PSC area.

Under a signed Heads of Agreement with PT Perusahaan Gas Negara Tbk (PGN)(IDX: PGAS), gas produced from the TE-B06-001 and TE-B06-002 wells, as well as future wells, will be delivered through an infield pipeline to PGN’s processing and distribution facility within the Tanjung Enim PSC area.

Editing by Alexander Ginting