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Kalimantan exports CBM as LNG, tests more wells

Newton Energy Capital Ltd. has completed its first coalbed methane exploratory test well on the Kutai West CBM PSC area in East Kalimantan, Indonesia, said CBM Asia Development Corp., Vancouver, BC, which has an 18% interest in the PSC.

Logs indicate that the CBM-KW-02 well cut 25 m of coal in the target Miocene Balikpapan formation. Preliminary gas content values are 75-175 scf/ton on an as-received basis. Permeability averaged 5-10 md. Final laboratory results are pending. The rig has spudded a second core well north of the initial location on Mar. 15, 2012.

VICO Indonesia, a combine of BP PLC and Eni SPA, began commercial CBM production March 2011 from the adjoining Sanga-Sanga PSC and is exporting the gas through the Bontang LNG facility to North Asian consumers (OGJ Online, Apr. 1, 2011).

CBM Asia said the Kutai West test results are supported by Dart Energy Ltd.’s exploration results at the Sangatta West PSC to the north and VICO’s Sanga-Sanga PSC to the east. CBM Asia plans to begin drilling its first pilot program soon on the Sekayu PSC.

Indonesia has granted 39 CBM PSCs since 2008 that represent more than $100 million in exploration commitments in the next 3 years. Other companies active in CBM in Indonesia include ExxonMobil, Medco, Santos, and Total SA.


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