NuEnergy: Drilling commences in Muralim PSC, pre-drilling starts in Muara Enim II PSC
Thursday, January 19 2017 - 04:51 AM WIB
Courtesy of Nuenergy
ASX-listed NuEnergy Gas Ltd announced Thursday that towards the end of 2016, drilling commenced on the exploratory well MU-004 in the Muralim PSC, South Sumatra.
NuEnergy said in a statement that drilling is currently on- going to the targeted depth of 710 meters in order for permeability tests to be conducted. During the same period, permeability tests were conducted on two existing wells, MU#X01 and MU#X02, and data analysis is continuing.
The program in the Muralim PSC will 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 company said the completion of the program is expected to satisfy the requirement for the application of the Exploration Period extension. The Exploration Period ended on 2 December 2016. NuEnergy made an application and has been granted an extension to the end of February 2017 to complete the program for Exploration Period extension.
The Muralim PSC is located in 3 regencies, namely Musi Rawas, Lahat and Muara Enim. This PSC was awarded December 3, 2010 for 30 years. The exploration period under the PSC is 6 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.
Elsewhere, NuEnergy said pre-drilling operations commence in Muara Enim II PSC, South Sumatra, on land clearance and building access roads were completed towards the end of 2016. Drill pad construction is currently in progress and the program will cover the drilling of three production wells.
The program is expected to fulfil the requirement for an application ofthe Exploration Period extension that will end on March 31, 2017, the company said.
?While enabling the application of the Exploration Period extension, the program will assist with reservoir characterisation of the coal seams towards the western part of Muara Enim II PSC and confirm the coal continuity throughout the other NuEnergy South Sumatra PSCs for future integrated development,? the firm said.
Editing by Reiner Simanjuntak