NuEnergy Ends Permeability Testing Program at Muara Enim PSC in Sumatra

Australia's gas and ancillary power generation development company NuEnergy Gas Limited (NuEnergy) reported Friday the successful completion of its Muara Enim Pilot Well #2 permeability testing program and the commencement of gas flaring and dewatering at the Muara Enim Production Sharing Contract (PSC) Pilot Production Site in South Sumatra, Indonesia.

NuEnergy has successfully installed fishbone completions across the J coal seam and installed pre-perforated casing across the H, J, K and L coal seams. Permeability was tested across all of these seams and the results, determined by the official Indonesian certifier PT Lemigas, demonstrated permeability ranging between 2.44 and 30.15 millidarcy (Md). The upper end of the permeability range recorded in this well is 275 percent greater than the permeability test result recorded in the Muara Enim PSC Pilot Well #2.

NuEnergy's CEO Christopher Newport commented: "These permeability results and gas flare provide further confidence that the project is progressing towards becoming a viable gas production site. NuEnergy is now analyzing these results with a view to identifying the most gas productive coal seam to be drilled and completed horizontally at the Muara Enim PSC Pilot #3 site, which is 984 feet (300 meters) from Pilot Well #2."

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