SYDNEY (Yosefardi) – NuEnergy Gas Limited has commenced drilling for the second pilot well at the Muara Enim Production Sharing Contract (PSC) Pilot Production Site in South Sumatra, Indonesia.
Pilot Well 2 is located approximately 500 metres from Pilot Well 1 which has been producing gas for over 120 days.
The well will be drilled and cased to a depth of 800 metres, with the primary coal seams located between 558 and 705 metres below surface.
Discussion are underway with SKKMIGAS, the upstream oil and gas regulator in Indonesia, for pre-Plan of Development (PoD) approval for the pilot plant so NuEnergy may sell gas from the pilot into a gas gathering system located approximately 7km from the pilot production site.
NuEnergy has three operated PSCs in Indonesia, two operated CBM & shale gas joint ventures in Tanzania and Exclusive Prospecting License in Malawi for CBM and shale gas.