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Nuenergy Ends Testing Program at Muara Enim PSC

Source: www.gulfoilandgas.com 12/27/2013, Location: Asia

NuEnergy Gas has completed pilot well-2 permeability tests and commenced gas flaring and dewatering at the Muara Enim production sharing contract site in South Sumatra, Indonesia.

NuEnergy has also installed fishbone completions across the J coal seam, and pre perforated casing across the H, J, K and L coal seams.

Permeability was tested across all of these seams with results ranging between 2.44 and 30.15 millidarcy.

These permeability results and gas flare provide further confidence that the project is progressing towards becoming a viable gas production site.

NuEnergy is now analysing these results with a view to identifying the most gas productive coal seam to be drilled and completed horizontally at the number 3 site, which is 300 metres from pilot well-2.

Compressed natural gas producer Dharma Pratama Sejati has agreed to offtake between 1 million and 5 million standard cubic feet of gas at US$10 per million British Thermal Units.

This represents potential gross revenue of between US$10,000 and US$50,000 per day, or between US$3.6 million to US$18.2 million per annum to the joint venture.

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