Indonesia-focused upstream company, NuEnergy Gas commenced drilling at its coal bed methane (CBM) exploratory well, RE-CBM-01CE at the Rengat PSC in Central Sumatra, Indonesia.
Using the MCQ 700 fully hydraulic automated truck mounted rig, RE-CBM-01CE well located approximately 195 km south of Pekanbaru, is being drilled to a depth of 495m.
MCQ 700 was selected for this CBM operation, as it is equipped with both coring and drilling top drives, requiring less manpower and provides a smaller footprint, including the ease of inter-well mobilization, noted NuEnergy.
It will be mobilized to the second well, RE-CBM-02CE located 30 km southwest of RE-CBM-01CE, upon completion of this drilling.
NuEnergy will also conduct permeability testing on coal formations to identify and map coal continuity across the basin for further development.
The Rengat PSC in which NuEnergy holds 100% interest, covers 2395sq km of the Central Sumatra basin.
It sits in-between prolific oil and gas concessions within the area and nearby a gas pipeline routed from Jakarta to the Chevron Duri Steam Flood project and related infrastructures.
Headquartered in Sydney with an office in Jakarta, NuEnergy is also in the process of acquiring Dart Energy’s CBM assets in Indonesia, under a conditional agreement of US$1 million.
This includes Dart Indonesia’s 45% interest in Tanjung Enim and 50% interest in Muralim, both located in South Sumatra; and 100% participating interest in Bontang-Bengalon in East Kalimantan. All of these blocks have been awarded a 6-year exploration permit previously.
Exploration period on the Tanjung Enim PSC, covering an area of 313sq km expires August 2015. It contains an average of 65-70m net coal thickness and is among the CBM PSCs in Indonesia, which have high potential for commercial development.
Muralim PSC is 835sq km, located adjacent to Tanjung Enim. Exploration contract ends December 2016, and wells drilled in mid-2012 have indicated average net coal thickness of around 29-30m.
Work is yet to commence on the 411sq km Bontang Bengalon PSC ending October 2018. Furthermore, this acquisition will also see NuEnergy with rights to the joint evaluation of the Bungamas CBM, adjacent to Tanjung Enim and Muralim.
Image: MCQ 700 rig at RE-CBM-01 site/ NuEnergy
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