CBM Asia Development Corp. announces an update on coalbed methane production operations at the block, where the Company holds 705 Bcf of net prospective recoverable resources.(1) The Company also announces the resignation of board member Adam Clarke and the return of Keith Potter to his former position as General Manager, Indonesia.
During the past few weeks the KW-CBM01 well at Kutai West has been undergoing initial production testing. Operator Newton Energy has installed a progressive cavity pump in the well and is adjusting pump rates and position to optimize dewatering and gas production. Although the well is an isolated CBM test and at a very early stage of dewatering, already gas rates of 16 Mcfd have been measured. This confirms earlier testing which indicated a high degree of gas saturation. The longer term plan is to drill four new wells surrounding the KW-CBM01 well for improved dewatering and higher gas production.
Our plan at Kutai West is similar to what VICO Indonesia has already accomplished at two CBM pilots in the adjacent Sanga-Sanga PSC, where commercial production has been underway for three years. VICO, the joint-venture between BP and ENI, recently announced plans to drill 20 additional CBM wells at Sanga-Sanga to provide more gas supply for the Bontang LNG export facility.
Separately, consistent with the Company's ongoing cost cutting measures, director Adam Clarke has resigned from all management and board positions. However, Mr. Clarke remains available to the Company on a consulting basis during the ongoing capital raise. The Company gratefully recognizes the many contributions Mr. Clarke has made during his past three years of service. In Jakarta, Mr. Keith Potter stepped down as the company's VP Operations, but continues in his duties as General Manager Indonesia.
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