NuEnergy: Study confirms coal seams up to 150 meters thick at Muara Enim PSC

By Ruli Setiawan

ASX-listed NuEnergy Gas Limited announced Friday that it has completed a geological and geophysical evaluation of the South Sumatra Coal Basin. Data from 49 well logs and over 146 seismic lines representing 2,376 kilometers of seismic were assessed. Underlying structural elements, such as anticlines and faults, have been identified.

The objectives of this work were to:
1. Map all of the South Sumatra coal formations across the concession areas;
2. Identify ?sweet spots? for future appraisal drilling and pilot projects;
3. Identify existing infrastructure such as gas gathering pipelines, major trunklines and compressor stations; and
4. Upgrade gas-in-place and contingent resource estimates using the results of the evaluation.

The company said that the study among others confirmed coal seams up to 150 meters in total thickness at the Muara Enim PSC, and identified single continuous seams of 38 meters. Other highlights include excellent targets for in seam horizontal wells and ?sweet spots? in 20 locations above anticlinal structures.

NuEnergy said that it continues to focus on completing the current first Pilot Project and developing its 2014/15 program to appraise the productivity of gas resources in the Muara Enim and Muara Enim II PSC?s.

The 2014/15 pilot projects will be targeted at:
- confirming ?sweet spot? areas;
- generating further proof of concept to investors;
- providing water and gas production curves for reservoir engineering and gas recovery estimates;
- generating early cash flows and booking reserves; and
- optimizing completion and drilling techniques in coal seams which are up to 40 meters thick, all with a view to support a significant gas project in the order of 50 to 100 mmscfd in 2016.

Editing by Reiner Simanjuntak