NuEnergy to complete drilling in Muara Enim II PSC before May
Tuesday, April 4 2017 - 03:53 AM WIB
ASX-listed NuEnergy Gas Limited (NGY) said that it has received endorsement from the Indonesian upstream oil and gas authority SKK Migas to continue with the current drilling campaign in the Muara Enim II PSC in South Sumatra beyond the expiry of the Exploration Period on March 31, 2017.
?The completion of the drilling campaign will enable NGY to make application for and to secure extension of the Exploration Period. NGY expects to complete the drilling campaign before the end of May 2017,? the company said in an update statement on Monday, but did not provide further details.
NGY said on March 15 it has started drilling program at Muara Enim II PSC covering three production wells to fulfil the requirement for an application of the Exploration Period extension that will end on March 31.
?While enabling the application of the Exploration Period extension, the program will assist with reservoir characterization of the coal seams towards the western part of Muara Enim II PSC and confirm the coal continuity throughout the other NuEnergy South Sumatra PSCs for future integrated development,? the firm said in an update statement.
NuEnergy?s PSCs in South Sumatra cover a total area of 2,280 m2 (after full relinquishment under the terms of the PSC) and are situated in the most prolific Coal Bed Methane basin in Indonesia with existing gas pipelines infrastructure nearby.
Editing by Reiner Simanjuntak