CBM Asia Development Corp. (TSX:TCF) has successfully completed the drilling phase of its Sekayu coalbed methane (CBM) project in South Sumatra, Indonesia.
Jakarta-based PT Medco CBM Sekayu (MedcoEnergi), a wholly owned subsidiary of PT Medco Energi CBM Indonesia, is the operating partner of the Sekayu production sharing contract, in which CBM Asia holds the right to earn an initial 12% interest. MedcoEnergi has notified the company that it has successfully drilled the upper portion and set 7-inch casing in all three new CBM test wells (CBM-SE-01, -03, and -04).
Currently, MedcoEnergi is in the process of procuring the services of a wireline-coring tool that will sample the coal section of the three wells for gas content and permeability testing, planned for February 2011. Core Laboratories N.V. has been contracted to conduct the gas content sampling and analysis on site, Weatherford International Ltd. has been contracted to perform the coreless critical desorption pressure testing, while the permeability testing will be conducted by Medco. Production testing and dewatering on the previously drilled CBM SE-02 will be scheduled in February 2011.
Once the new CBM reservoir data becomes available, most likely during the second quarter of 2011, the company plans to engage the services of a reserves evaluator to audit the CBM resources at the block.The reservoir data and the dewatering well will also help guide the design of the CBM production pilot which, contingent upon positive results, is planned for 2H-2011.
"Indonesia's CBM industry is progressing, with over 20 production sharing contracts awarded thus far to Major oil and coal companies and their partners,” said Scott H. Stevens, chairman of CBM Asia. “The 4-well reservoir testing operation at Sekayu is an important milestone for demonstrating gas resources and producibility at this highly prospective PSC, the first CBM license to be awarded in Indonesia."
About CBM Asia Development Corp.
CBM Asia Development Corp. is a Canadian-based unconventional gas company with significant coalbed methane exploration and development opportunities in Indonesia.
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