NuEnergy to drill three CBM pilot wells

By Ruli Setiawan

ASX-listed NuEnergy Gas Limited will further drill the remaining three pilot wells, TE-11, TE-13 and TE-14 in Tanjung Enim coal bed methane (CBM) PSC, South Sumatera in the next quarter to complete the Tanjung Enim Pilot Production Program and commence dewatering and production testing for data package compilation for reserves booking, the firm said in a statement on Wednesday.

NuEnergy has completed drilling the first two pilot wells, TE-10 and TE-12 as part of the Tanjung Enim Pilot Production Program to the targeted depth of 399 meters and 384 meters, respectively. Results revealed from logging that coal seams with total thickness of up to 47 meters with over 13 meters from a single seam.

These results were very encouraging and confirmed the consistency of the reservoir parameters from the other Tanjung Enim PSC wells, i.e. TE-007C, TE-008C and TE-009C in 2015 and shows geological parameter similarities with other proven successful CBM basins.

Tanjung Enim PSC covers 249.10 km2 of the South Sumatera basin and is situated in the most prolific CBM basin in Indonesia with existing gas pipelines infrastructure nearby. NuEnergy has a 45 percent working interest in the PSC and is the operator of the PSC. NuEnergy has the potential to develop and operate a large scale CBM in South Sumatera as the Tanjung Enim PSC is situated closely to other NuEnergy?s PSC, the Muara Enim PSC, Muara Enim II PSC and Muralim PSC.

Editing by Johannes Simbolon