Sangatta West produces coalbed gas in Indonesia

By OGJ editors
-- Dart Energy Ltd. said the coalbed methane pilot well in the Sangatta West project in East Kalimantan started to flow gas on Mar. 25 after the installation of a dewatering pump.

Dart said this is the first gas in Indonesia from a dedicated CBM pilot well.

The well, SCBM No. 1, is the first of four pilot wells planned for Sangatta West. It was drilled in February to an 830-m depth and the plans are to test the well for 2-3 months to determine the production and reserves potential.

Sangatta West CBM Inc. is the joint-venture company that operates the Sangatta West CBM production-sharing contract in East Kalimantan. The joint operators are Ephindo Energy, with a 24% indirect interest in the PSC, and Dart 24%. PT Pertamina-Hulu Energy Metana Kalimantan-A is a nonoperating partner with 52% interest.

The venture intends to sell the gas from SCBM No. 1 along with gas from the other pilots to a pilot-to-power scheme. Dart's operating partner Ephindo has signed a memorandum with GE and local gas-fired genset supply company, Navigat, for supplying gas-fired electricity to the local grid.

Also in Indonesia, Dart has signed a joint operating agreement for the Tanjung Enim PSC in Sumatra and has spudded the first exploration well. This year Dart plans to drill three core wells and three pilot wells in the block. The company also has submitted a preplan of development for government approval to facilitate early-stage pilot-to-power sales similar to those in Sangatta West.

Dart holds a 45% interest in the Tanjung Enim PSC. Its partners are a local coal mine owner and operator PT Bukit Asam 27.5%, and Pertamina 27.5%.

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