Indonesia: Dart to obtain East Kalimantan CBM block

Dart Energy International Pte. Ltd., Singapore, plans to start work in mid to late 2013 on the 411 sq km Bontang Bengalon coalbed methane block in the central Kutei basin in East Kalimantan, Indonesia.

The exploratory work program in the first 3-year period consists of three core wells and one pilot well. A 30-year production sharing contract is expected to be signed within 1-2 months. Dart will operate Bontang Bengalon with a 100% working interest.

The southern part of the two-part block is adjacent to the Bontang LNG facility, and the northern part is 62 km north of that facility and adjacent to the Sangatta West PSC in which Dart is a net 24% participant and joint operator.

Dart considers Bontang Bengalon as highly prospective given the significant exploratory and pilot appraisal work undertaken on the neighboring Sangatta West block, where CBM reserves and commercial viability have already been established. Dart said the local market has substantial need for gas, including the Bontang LNG facility.

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