NuEnergy Gas Begins Hydraulic Fracturing at Muara Enim PSC, Indonesia

Indonesian and African focused energy company NuEnergy Gas Limited said that it has commenced hydraulic fracturing using radial jetting techniques at its Muara Enim Production Sharing Contract (PSC) pilot production site located in Sumatra, Indonesia.

The program commenced on 29 April and will hydraulically fracture five new untested coal seams covering 29 metres of coal thickness. The total lateral penetration exceeds 480 metres and the program is expected to enhance production rates at the pilot project.

The program is aimed at improving the production potential of the Suban Coal Seams, to provide information for the resource auditors to calculate reserves, and to confirm the water and gas production characteristics across the full spread of coals underlying the Muara Enim PSC.

NuEnergy can confirm that this program represents another step in advancing Muara Enim towards first gas sales by 31 December 2013.

NuEnergy’s Chairman Mr Graeme Robertson commented: “The current work program at the Muara Enim well site represents a positive step in NuEnergy booking its first gas revenue prior to year end. In the more immediate term, we are confident this program will lead to improved production rates for this pilot production well and enhance the potential from the new wells to be drilled shortly.

The gas market in Indonesia continues to grow with demand far outstripping supply in domestic and export markets. There is strong price and demand support for all CBM developers in South Sumatra and this is reinforced by the active development activity in the area with Santos, Dart, Medco, Ephindo and Pertamina all undertaking CBM drilling activities on surrounding tenements.”

NuEnergy’s Chief Executive Officer Chris Newport added: “With the pilot production site now in its final stages of development and the commitment of Dharma Pratama Sejati to purchase gas from NuEnergy, the next steps are to ensure the operations and development teams take the pilot production plant safely to production in the next two months. This will be augmented by the addition of two pilot wells over Q2 and Q3. NuEnergy’s exploration program is progressively proving and de-risking the South Sumatra CBM resource which is estimated by the Indonesian Government to be in excess of 180 Tcf.”

NuEnergy also confirms that it will shortly commence initial exploration activities at its 346 km2 CBM and shale gas EPL in Malawi, with airborne Geological & Geophysical works being undertaken in May.

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LNG World News Staff, May 1, 2013; Image: NuEnergy