NuEnergy Gas Spuds RE-CBM-01CE Exploratory Well in Central Sumatra

NuEnergy Gas Limited, Australia's gas and ancillary power generation development firm focused on unconventional gas exploration and production in Indonesia, reported Monday the commencement of drilling for the first exploratory well RE-CBM-01CE at the Rengat Production Sharing Contract (PSC) tenement in Central Sumatra, Indonesia.

Mobilization of the rig commenced in early June for well RE-CBM-01CE which is located approximately 121 miles (195 kilometers) South of Pekanbaru, Indonesia. The MCQ 700 fully hydraulic automated truck mounted rig is currently being used to drill to a depth of 1,624 feet (495 meters). The hydraulic rig was selected as it is ideally suited to Coal Bed Methane (CBM) operations. It is equipped with both coring and drilling top drives, requiring less manpower on site and provides a smaller footprint including the ease of inter-well mobilization. The hydraulic rig will be mobilized to the second well, RE-CBM-02CE located 18.6 miles (30 kilometers) southwest of RE-CBM-01CE upon completion of drilling.

NGY will core, log and conduct permeability testing on coal formations to identify and map coal continuity across the basin and to understand the reservoir characteristics for further development.

NuEnergy’s CEO Dr. Ian Wang commented: “Being the first prospect well to be drilled this year, we are extremely enthusiastic given the preliminary data results we have received thus far especially its close proximity to other oil and gas discoveries.”

Rengat PSC covers 925 square miles (2,395 square kilometers) of Central Sumatra Basin and lies in between prolific oil and gas concessions located in the Central Sumatra Basin in the vicinity of a major gas pipeline from Jakarta to the Chevron Duri Steam Flood project and related infrastructure. NGY has a 100 percent working interest in Rengat PSC and is the operator of the PSC.

The Rengat Drilling Program is spearheaded by a team from New Century Energy Resources Limited who have vast experience in drilling CBM wells in Asia.


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