NuEnergy gets green light to extend CBM PSC exploration period

By Alexander Ginting

ASX-listed firm NuEnergy Gas Limited reported Tuesday that it has received endorsement from upstream authority SKK Migas to continue with the drilling campaign in Muara Enim II coal-bed methane (CBM) PSC onshore South Sumatra.

The company?s exploration period in the block was initially granted for a period of six years commencing 1 April 2011 to 31 March 2017.

The completion of the drilling campaign will enable NuEnergy to make application for and to secure extension of the Exploration Period.

NGY has now completed the required work program and has submitted the work completion report to SKK Migas to finalise the process for the extension of the Exploration Period, the company said.

NuEnergy's PSCs in South Sumatra cover a total area of 2,280 km2 (after full relinquishment under the terms of the PSC) and are situated in the CBM basin in Indonesia with existing gas pipeline infrastructure nearby. NuEnergy has the potential to develop and operate a large scale CBM operation in South Sumatra with the Tanjung Enim PSC, Muara Enim PSC, Muara Enim II PSC and Muralim PSC located in close proximity to one another.