NuEnergy on target to produce CBM
Monday, September 10 2012 - 03:06 AM WIB
Australia-listed firm NuEnergy Gas Limited has announced results of the independent resource certification by Netherland Sewell & Associates Inc. (NSAI) for its Muara Enim and Muara Enim II PSCs in South Sumatra, which based on recent drilling results, support the commercial potential of the two blocks.
Chairman Graeme Robertson said in a statement that the certification results are pleasing and provide the foundation for future growth.
?The feasibility plan and the current pilot well evaluation justify a plan of development in 2013 for the first sale of coal bed methane (CBM) in Indonesia to major domestic and international gas buyers,? said Robertson.
The two blocks are located adjacent to major gas pipeline infrastructure which connects to the following critical markets:
? Singapore gas pipeline (+1.1 billion cubic feet (BCF) per day),
? Chevron Dun Steam Flood, and
? Jakarta gas markets.
The company is planning to install small scale power generation units at the ME Well#2 site for self-generation and the sale of power into the local power grid.
Gas sales from the CBM pilot plant are expected to increase in 2013 by the expanding the pilot production well drilling and up-scaling of the on-site power plant.
Editing by Dadan Wijaksana