NuEnergy reports successful well-1, 2 drilling results

By Peni Pedriawan

Results of drilling and testing program from Well-1 and 2 in Muara Enim CBM PSC in South Sumatra, have proved successful, ASX-listed NuEnergy Gas Limited announced on Wednesday.

From well-1 for instance, laboratory results confirm high methane content & gas in place estimates, the company said in a filing, with detailed results showing gas content at 115 scf/t, gas composition at 92.7 percent to 98.3 percent for CH4, with minor CO2 and an 88 percent gas saturation.

?Given Muara Enim PSC covers an area of 652.6 square km, this result generates an estimated gross gas-in-place net to NuEnergy of 1.89 Tcf,? it said, adding that these gross gas-in-place estimates are generated and supported by the thick continuous coal seams in South Sumatra, high gas saturation and high methane content.

Successful results were also indicated from the well-2, which was drilled to a total depth of 840 meters. This well will be used as a future pilot production well that will test permeability, water and gas productivity from the Suban coal seam.

Detailed results are as follows:

Net thickness of coal seams encountered:
- 43 meters (for the Suban and Mangus formations)
- Suban coal seam intersected over the interval 669 to 713 meters with a total of 24 net meters of coal seam thickness.

Suban Coal Quality ? Black:
- Sub ? Bituminous.
- Conchoidal Fractures.
- Face & Rare Butt Cleats regularly distributed with no fill.
- Ash content: 6 percent.
- Moisture content: 14 percent.
- Relative density: 1.33 g/cc.

NuEnergy said that the well-2 coal cores from the Suban and Mangus seams are currently being analyzed by Geoservices for gas content and quality.

Up next on the company?s 2012 program is to prove the permeability and productivity of the Suban and Mangus coal seams in both Muara Enim PSC and Muara Enim II PSC where the total net coal seams are up to 88 meters or 288 feet thick.

A pilot production project is currently underway in Muara Enim PSC with a view to generating first water and gas production for small scale power generation by the end of Q4 2012.

NuEnergy holds a 40 percent interest and is operator of Muara Enim PSC through its subsidiary PT Trisulsa CBM Energi.

Editing by Dadan Wijaksana