NuEnergy to commence third well drilling in Q4

Australia-listed firm NuEnergy Gas Ltd announced that drilling at the third well at its Muara Enim CBM PSC in South Sumatra is to commence later in the fourth quarter of the year.

In a presentation, the company said that pilot project is currently underway, which consists of dewatering and flaring, from the drilling of two wells earlier to lay the foundation for proven reserves.

It quoted the Netherlands Sewell & Associates Inc (NSAI) which has issued an independent resource certification of 8.1 tcf gas-in-place (GIP) with a 4.2 tcf prospective resource. The Institute of Technology Bandung (ITB) has independently also estimated a shale gas resource of 6.1 tcf GIP.

NuEnergy is on track to achieving the target of securing gas-to-power sale deal early next year. As for potential buyers, the firm said demand should be strong as major gas infrastructure connects NuEnergy?s PSC?s to the undersupplied Java, Singapore and Sumatra/Chevron Duri gas markets.

?NuEnergy has the potential to secure LNG pricing from these markets without having to build and LNG plant,? it said in the presentation.

Editing by Dadan Wijaksana