VANCOUVER (Yosefardi) – CBM Asia Development Corp. has high confidence in commercial viability for coalbed methane (CBM) in Kalimantan, Indonesia.
CBM Asia and ExxonMobil have agreed to extend the Umbrella Agreement signed on December 19, 2012. Both companies are engaged in amending certain terms of the agreement and the Company with approval from ExxonMobil will announce details in the near future.
“Our confidence in the commercial viability for CBM in Kalimantan is high and we look forward to success in the coming drilling season,” states Alan Charuk, President and CEO of CBM Asia Development Corp. “We expect to be able to release full details of the contract amendment in the near future.”
For Sekayu PSC., on May 23, 2013 Medco Energi, the operator of Sekayu PSC, resumed production testing at the CBM-02 well, installing a new high-capacity submersible pump. The well is producing a steady 3,000 bbl/day of potable-quality formation water from the Miocene-age Palembang coal seams. Gas production was initiated almost immediately and is increasing as the well dewaters. Gas produced from the well is being consumed on site to drive the downhole pump.
Coring operations have been completed at the CBM-01 well. The Company is awaiting final gas content and coal analysis reports. 4 1/2″ casing has been run, cemented and perforated adjacent to the Palembang C coal seam at a depth of 1,380 – 1,404 feet.
Meanwhile, for Kutai West PSC., Newton Energy, the operator of the Kutai West PSC, plans to begin completion and stimulation operations on four coal seams in the KW-CBM-01 well in September 2013. Dewatering at this location will follow pending the results of the stimulation program.