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NuEnergy Gas Limited (“NuEnergy”) is pleased to update on the drilling progress for Pilot Well #2 at the Muara Enim Production Sharing Contract (PSC) area in South Sumatra, Indonesia.
o Pilot Well # 2 has been cased and cemented to 594 metres
o The drill is down to the final section at circa 800 metres with a target depth of 880 metres
o When target depth is reached the first round of IFO testing will begin to determine the permeability of each of the 6 coal seams already identified at this location
o Subsequent to IFO testing the Pilot Well # 2 completion stage will commence using three techniques:
? Radial jetting of the upper coal seams to extend laterals outwards of between 30 and 50 metres;
? “Fishbone” completion technology; and
? Slotted liner casing,
to maximize the water and gas productivity of all coal seams.
Upon completion of Pilot Well # 2 NuEnergy will connect the pilot well to the pilot production plant and commence dewatering the coals whilst monitoring gas production levels. Work has commenced to connect Pilot Well # 2 to the pilot plant with a view to increasing dewatering and gas production rates in Q4 2013.
With Santos drilling CBM prospects in acreage directly to the North and East of Muara Enim PSC and Dart Energy and Sugico drilling to the West, the South Sumatra coal basin is maturing and entering the next phase of appraisal and development. The focus in late 2013 is turning towards the sweet spots in the basin where gas content and permeability are high and there is immediate proximity to existing open-access gas infrastructure that is connected to heavily under-supplied energy markets.
An official from the Directorate General of Oil and Gas visited the pilot well site on the 12th of November 2013 ahead of finalisation of pre plan of development approval, which will facilitate an early sale of gas.