NuEnergy completes required program for extension of Muralim PSC

ASX-listed NuEnergy Gas Limited (NGY) announced Thursday it has completed programs required to obtain extension of exploration period for the Muralim PSC in South Sumatra.

?NGY has now completed the required work program and has submitted the work completion report to SKK Migas to finalize the process for the extension of Exploration Period,? the company said in an update statement of the PSC.

The Exploration Period expired on December 2, 2016, prompting the company to apply for extension of the Exploration Period to the upstream oil and gas authority SKK Migas. The latter then gave NGY until end of February 2017 to complete the required work program for extension of the Exploration Period.

In a quarterly report published January 19, 2017, the company said the program in the Muralim PSC would cover activities to drill a well to conduct permeability tests and to re-enter two existing wells to conduct permeability tests. The program will enable NuEnergy to improve the understanding of the coal characterisation to the eastern part of the Muralim PSC.

The Muralim PSC is located in three regencies in South Sumatra namely Musi Rawas, Lahat and Muara Enim.

This PSC was awarded December 3, 2010 for 30 years. The exploration period under the PSC is six years up to December 2016.

The contract area comprises a total of 835 square kilometers (322 square miles). Wells drilled in mid-2012 have indicated average net coal thickness of around 95 feet (29 meters) to 98 feet (30 meters), low rank coal seams ranging from depth of 1,640 feet (500 meters) to 2,297 feet (700 meters) with an average gas content of 105 scf/ton.

Editing by Reiner Simanjuntak