NuEnergy restarts pilot production in Muara Enim
Wednesday, May 29 2013 - 01:38 AM WIB
ASX-listed firm NuEnergy Gas Limited said on Wednesday that the pilot production operation is recommenced at the Muara Enim PSC Pilot Production Site in South Sumatra.
With completions across 5 coal seams via the use of radial jet technology, NuEnergy expected gas and water production to exceed past results. This expectation has been met with gas production recommencing at higher rates within two hours of the commencement of dewatering operations.
?We are pleased to have successfully recommenced pilot production at Muara Enim, representing another important step towards achieving our first gas sale, expected in December 2013,? NuEnergy?s Chairman Graeme Robertson said in a press statement.
He added that gas water production has exceeded expectations and his company will continue to work with an existing gas buyer and project partner Pertamina to achieve the goal.
NuEnergy is now close to awarding a drilling contract to one of a shortlist of contractors with a view to committing to a two well development program (with option to drill more) to complete the Muara Enim PSC pilot production site.
The drilling of the next two pilot wells is scheduled to commence within the next six weeks. Dewatering operations will continue in parallel with drilling operations for the next two pilot wells, which will be connected to the pilot site as they are completed.
Given the high gas prices and significant unmet demand for gas in South Sumatra and the regulatory approvals underway to approve the sale of pre-plan of development production, some conversion of contingent resources to reserves is expected in the coming months. As the pilot program gains maturity, NuEnergy will work in co-operation with off-take partner, PT DPS, to commercialize the pilot gas produced at the pilot site.
Editing by Benget Besalicto Tnb