NuEnergy Gas Ltd said it had completed drilling for the fourth and final well in its “Early Gas Sales” project under the initial development plan for the Tanjung Enim coalbed methane (CBM) production sharing contract (PSC) in Indonesia.
“Gas shows were observed at surface via surface logging equipment, confirming the presence of methane across multiple seams”, the Australian company said in a stock filing.
The TE-B01-003 well, drilled 451 meters (1,479.66 feet) deep, intersected five coal seams at depths ranging between 299 and 419 meters, according to NuEnergy.
“NuEnergy has installed a progressive cavity pump system for the TE-B01-003 well and preparations are now underway to commence dewatering – a key step toward establishing stable gas flow and optimizing well performance”, the company said.
“Gas will be gathered at the surface facility and delivered to the gas processing facility upon reaching target production levels”.
It added, “Pursuant to the signed heads of agreement with PT Perusahaan Gas Negara Tbk (PGN), gas produced from the drilled wells, TE-B06-001, TE-B06-002, TE-B06-003 well and the TE-B01-003 well, will be delivered via an infield pipeline to PGN’s processing and distribution facility”.
The Early Gas Sales project will sell one million standard cubic feet a day (MMscfd) to Indonesian state-owned gas distributor PGN, toward the 25-MMscfd initial plan for the Tanjung Enim license, according to NuEnergy. On September 8, it announced approval from the Energy and Mineral Resources Ministry for the one-MMscfd sale through its subsidiary Dart Energy (Tanjung Enim) Pte Ltd (DETE).
“With the gas allocation approval now secured, DETE will proceed with finalizing the Gas Sale and Purchase Agreement with PGN”, NuEnergy said then.
Meanwhile the bigger Tanjung Enim Plan of Development (POD) 1 was approved June 2021 “under a gross split scheme which will allow the PSC to proceed field development, surface facility construction and selling of the gas”, NuEnergy says on its website. “The approval also represents the first coalbed methane POD in Indonesia”.
The 30-year PSC, awarded August 2009, has proven and probable reserves of 215 billion cubic feet (Bcf) and gas in place of 484 Bcf and spans 249.1 square kilometers (96.18 square miles), according to NuEnergy.
The contract area sits about 50 kilometers (31.07 miles) and 130 km from the cities of Prabumulih and Palembang respectively and approximately 35 km from major gas trunk lines, according to NuEnergy.
It operates the license with a 45 percent stake. Indonesia’s state-owned oil and gas company PT Pertamina and state-owned coal mining company PT Bukit Asam each own 27.5 percent.
To contact the author, email jov.onsat@rigzone.com
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