NuEnergy to submit POD for Tanjung Enim PSC end 2017

By Romel S. Gurky

ASX-listed NuEnergy Gas Limited said it plans to submit the first Indonesia coalbed methane (CBM) plan of development (POD) proposal to the government of Indonesia by the end of the year, underscoring the major exploration advance by the company in the last 12-18 months.

The company said in a statement last week that discussions with the upstream oil and gas authority SKKMigas to review the exploration status decision (ESD) proposal for Tanjung Enim PSC, South Sumatra, as the first step to proceed with the POD.

Dewatering and production optimization for the Tanjung Enim Pilot Production Program (TEPPP) conducted throughout the quarter ending June of this year with results demonstrating production parameters in line with the simulated model for commercial delivery, the company added.

With the progress of the TEPPP and the overall exploration data, NuEnergy said it prepared the ESD report which consists of the resources estimates, POD concept and economic evaluation for submission and discussion with SKK Migas. The ESD report is required as the first step to determine the status of exploration to enable SKK Migas to review the reported CBM resources before proceeding with the POD preparation.

Upon the ESD approval from SKK Migas, NuEnergy said it will prepare the detail POD proposal to the government of Indonesia. ?The ESD approval will herald the completion of Tanjung Enim PSC exploration and signify the move to POD preparation,? it said.

NuEnergy has a 45 percent working interest in the Tanjung Enim PSC and is the operator of the PSC.

Elsewhere, NuEnergy reiterated it has completed the drilling of three production wells as part of the work to fulfil the Muara Enim II PSC commitments to allow for the extension of the Exploration Period. The Exploration Period expired on 31 March 2017 and NuEnergy received endorsement from SKK Migas to continue with the drilling beyond the expiry of the Exploration Period. All works were completed by the end of May 2017. ?NuEnergy is currently awaiting the review of the drilling results by SKK Migas to process the extension of the Exploration Period.

The drilling in Muara Enim II PSC revealed similar reservoir characteristics with the Tanjung Enim PSC which is located adjacent to the west of the Muara Enim II PSC which is comparable with the general reservoir characteristics of the South Sumatra basin. The results from logging of each well revealed coal seams ranging in total thickness of 41-53 meters and with over 12 meters thickness from single seams.

The drilling in Muara Enim II PSC confirms the coal continuity throughout all NuEnergy?s South Sumatra PSCs. NuEnergy?s PSCs in South Sumatra cover a total area of 2,280 km2 (after full relinquishment under the terms of the PSC) and are situated in one of the most prolific CBM basins in Indonesia with existing infrastructure nearby. NuEnergy said it has the potential to develop and operate a large scale CBM operation in South Sumatra with the Tanjung Enim PSC, Muara Enim PSC, Muara Enim II PSC and Muralim PSC located in close proximity to one another.

Editing by Reiner Simanjuntak