NuEnergy to drill pilot well #2 at Muara Enim PSC

Thursday, August 29 2013 - 02:36 AM WIB

By Puspita Maylana Devi

ASX-listed NuEnergy Gas Limited said that the CBM drilling rig for NuEnergy?s second pilot well (pilot well #2) is being mobilised to the Muara Enim Production Sharing Contract (PSC) pilot production site in South Sumatra.

The company said in a statement obtained Thursday that mobilisation of the rig commenced on 26 August 2013 for pilot well #2, which is located approximately 500 meters from pilot well #1. The second pilot well will be drilled and cased to a depth of 800 meters, with the primary coal seams located between 558 and 705 meters below the surface.

NuEnergy will again use radial jet technology to complete extended laterals across the most significant of the upper coal seams, and utilise pre-perforated slotted linear casing over the lower coal seams to maximise access to the productivity of those seams, the company explained.

NuEnergy will log, permeability test and radial jet over 31 meters of Mangus and Suban coat seams, with the laterals extending outwards to between 30 and 50 meters from the well easing.

Upon completion of pilot well #2, well tubing and a pump drive unit will be installed and the well connected to the pilot production plant located at the Muara Enim pilot well #1 site. This will precede the commencement of dewatering operations and the build-up of gas production.

Dewatering operations at the pilot well #1 production site have been under way and producing gas for three months, with gas production steadily increasing. Aurecon is currently completing engineering work for the conversion of the pilot production site to a production and sales facility.

?We are encouraged by the progress at our first pilot well, with dewatering operations demonstrating a steady increase in gas production. With a MOU already in place for the sale of our gas, the company remains focussed on converting our pilot production site to a production and sales facility. This is a priority for NuEnergy,? said NuEnergy?s CEO, Christopher Newport.

Editing by Reiner Simanjuntak

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