NuEnergy continues drilling campaign in Tanjung Enim PSC
Friday, July 22 2016 - 03:00 PM WIB
ASX-listed NuEnergy Gas Limited announced on Friday it continued to focus its operations on the drilling campaign in the Tanjung Enim PSC, South Sumatra with the aim of upgrading resources and proving reserves.
NuEnergy completed drilling another three pilot wells, TE-11, TE-13 and TE-14 to the targeted depth of between 408 meters to 460 meters. Results from logging revealed coal seams with total thickness of up to 45 meters with over 12 meters from a single seam.
The results were expected and confirmed the consistency of the reservoir parameters from the two pilot wells drilled in the previous quarter and the other Tanjung Enim PSC wells, TE-007C, TE-008C and TE-009C drilled in 2015 that shows geological parameter similarities with other proven successful CBM basins.
Upon the completion of drilling, the campaign moved to the next phase of dewatering and production testing. The initial production performances were encouraging and NuEnergy will continue to monitor the production performance in preparation to upgrade the asset through reserves booking.
?The progress of our first Pilot Production Program at the Tanjung Enim PSC where we have completed drilling during the quarter and commenced dewatering and production test. Though we are still at the initial stages of dewatering and production testing, we are encouraged by the early indicators. With the prospect of this underlying asset, we would expect a favorable outcome when we upgrade this asset through reserves booking,? Chairman Kong Kok Keong said.
Tanjung Enim PSC covers 249.10 km2 of the South Sumatra basin and is situated in the most prolific CBM basin in Indonesia with existing gas pipelines infrastructure nearby. NuEnergy has a 45% working interest in the PSC and is the operator of the PSC. NuEnergy has the potential to develop and operate a large scale CBM in South Sumatra as the Tanjung Enim PSC is situated close to other NuEnergy PSC?s, the Muara Enim PSC, Muara Enim II PSC and Muralim PSC.
Editing by Johannes Simbolon