NuEnergy signs first JOA with Pertamina Hulu Energi

ASX-listed NuEnergy Capital Ltd on Thursday (Aug 4) signed a Joint Operating Agreement (JOA) with its Indonesian partner PT Pertamina Hulu Energi Metana Sumatera, a subsidiary of PT Pertamina, an Indonesian state owned oil company.

The company plans to commence drilling on the existing tenements this quarter. The drilling of the first well is expected to commence in September on the highly prospective Muara Enim PSC.

The Muara Enim PSC is located in South Sumatra. It comprises of a combined area of 1,861 km2, containing 10-40 meter thick, low rank coal seams ranging in depth from 350-1300 meters.

NuEnergy said the concessions appear robust for CBM development containing thick sections of coal at optimal depths and located close to existing oil and gas infrastructure.

?As the first JOA between NGY and Pertamina, this is an important milestone in strengthening the relationship and capabilities between the two organizations,? the company chairman, Roberstson, said. (romel)