NuEnergy: Rengat CBM potential significantly upgraded

By Romel S. Gurky

ASX-listed NuEnergy Gas Ltd said in a presentation material seen on Wednesday that the potential of the Rengat CMB PSC in Riau, has been significantly upgraded through geological and geophysical works.

The G&G works include logs of 146 wells, mapping of 24 fields, well status of 807 wells and 1,064 km of seismic survey, the company said.

NuEnergy is the operator of the Rengat CBM PSC, covering a concession area of 2,995 square kilometers.

PT Indon CBM, a wholly-owned subsidiary of NuEnergy, has recently completed a Migas joint study, the results of which have defined an area of 2,995 square kilometers encompassing coal seams averaging 3-5 meters thick and from 450 to 1550 meters in depth.

Preliminary studies by IndonCBM have projected gas content in the targeted areas to be approximately 118-160 scf/ton. Studies of the concession area have strongly suggested coal properties are most suitable for coal bed methane exploitation and commercial production and rank favorably with comparable global CBM producing basins. Existing oil field and gas pipeline offtake infrastructure is in place.

The infrastructure in place consists of inter-provincial roads, exploration wells infrastructure and waste water facilities for the palm industry. There is a gas pipeline across the concession area from northern Sumatra to Java Island Processing Terminal which can be accessed for both pilot project and full commercialization production gas distribution.

IndonCBM is of the view that the gas pipelines within the concession area will enhance negotiations of gas ofttake purchase agreements from the project.

Editing by Reiner Simanjuntak