NuEnergy strengthens relationship with Indonesian partner

Melbourne-based NuEnergy Capital on Friday reported that it had signed a joint operating agreement with Indonesian partner PT Petramina Hulu Energi Metana Sumatera, in an effort to strengthen the relationship and capabilities between the two organisations.

NuEnergy would start drilling on its existing coal-bed methane tenements during the current quarter, with the first drilling well expected to start in September, on the Maura Enim PSC.

The tenement is located in South Sumatra, and comprises a combined area of 1 861 km² containing between 10 m and 40 m thick, low rank coal seams ranging in depth from 350 m to 1300 m.

The concessions appear robust for coal-bed methane development, said NuEnergy, adding that it contained thick sections of coal at optimal depths, and located close to existing oil and gas infrastructure.

NuEnergy was aiming to become a meaningful coal-bed methane producer in Indonesia, and plans to subject its acreage to a pilot hole exploration and appraisal drilling, as well as a pressurized coring programme to assess the reservoir characteristics of the coal beds, and the gas production attributes.

Should the pilot programme prove successful, NuEnergy was hoping to become one of the top-tier producers of coal-bed methane in Indonesia, within the next five years. Source: Miningweekly