NuEnergy spuds Pilot Well #2 in Indonesia

NuEnergy Gas has commenced drilling of a second well at the Muara Enim pilot production site in South Sumatra, Indonesia.

Located around 500m from Pilot Well #1, the new well will be drilled and cased to a depth of 800m, with the primary coal seams located between 558m and 705m below surface.

To complete extended laterals across the significant upper coal seams, NuEnergy will use radial jet technology and pre-perforated slotted linear casing over the lower coal seams to get better access.

Permeability tests and radial jets will be logged over 31m of the Mangus and Suban coal seams, with the laterals extending outwards to between 30m and 50m from the well casing.

Well tubing and a pump drive unit will be installed upon completion of the second well, which will be connected to the pilot production plant at the Muara Enim Pilot Well #1 site.

NuEnergy is in discussions with the upstream oil and gas regulator in Indonesia SKKMIGAS for pre-planning development (pre-POD) approval for the pilot plant.

The company plans to sell gas from the pilot into a gas-gathering system located around 7km from the pilot production site.

NuEnergy chief executive officer Christopher Newport said that its initial discussions with SKKMIGAS will enable the company to sell gas into an existing gas-gathering system situated close to its pilot production site.

"We are on track to convert our pilot production site to a production and sales facility and with an existing MoU already in place for gas sales, and with the ongoing support of our strategic joint venture partner Pertamina, are entering an exciting period of the company’s development," Newport added.

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Image: NuEnergy Gas will drill Pilot Well #2 to a depth of 800m. Photo: NuEnergy Gas Limited.