Rig mobilized for S. Sumatra CBM drilling
Wednesday, August 18 2010 - 05:58 PM WIB
The main target for CBM exploration in the Sekayu PSC block is the coal-bearing Middle Palembang Formation which is characterized by continuous and thick coal from multiple coal seams present in two main coal groups, the upper Palembang Group and the lower Pangadang Group, it said.
Three main coal seams have been identified as the most promising for CBM development based on their thickness. The Palembang B Seam with gross thickness of 48 feet, Palembang C Seam with gross thickness of 114 feet and Pangadang A Seam with gross thickness of 109 feet. This information is supported by extensive well geochemical data from PT Medco Energi International's multiple oils wells located across the Sekayu PSC contract area, it added.
Medco Energi is planning to sequentially drill three exploration wells in the Sekayu block - CBM-SE-04, CBM-SE-03, CBM-SE-01 and set intermediate casing above the Palembang coal groups. The first of these wells is expected to spud on August 18, 2010. A second rig will core the Palembang and Pangadang coal groups. These three exploration wells are estimated to expose approximately 184, 184 and 156 net feet of coal to total depths of 3350 feet, 3300 feet and 2500 feet, respectively. Depending upon initial results, further work on CBM-SE-01 would test the individual seam groups for permeability, verify gas content and begin production testing.
Due to well control regulations, the wells will be drilled in sequence and coring will commence on the third well first, once it has been cased. Subsequent initial results from these operations are not expected to be available until the fourth quarter of 2010. These results will complete and verify data already gathered from CBM SE-02, the first exploration well which was drilled in September 2009, and are expected to provide the Company with a refined gas-in-place estimate over the block, gas content and permeability ranges for the same area, and gas and water production rate estimates, either for the CBM-SE-01 or CBM SE-02 location.
Medco is the block?s operator with 50 percent interest. The remaining balance is held by South Sumatra Energy Inc, in which CBM Asia has 13 percent stake. (alex)