CBM Asia Development Corp. (Toronto Venture: TCF) has provided an operational update on its coalbed methane (CBM) properties in Indonesia.
• CBM Asia and ExxonMobil have agreed to extend the umbrella agreement signed on December 19, 2012. Both companies are engaged in amending certain terms of the agreement and the company with approval from ExxonMobil will announce details in the near future.
• On May 23, 2013 Medco Energi, the operator of Sekayu PSC, resumed production testing at the CBM-02 well, installing a new high-capacity submersible pump. The well is producing a steady 3,000 barrels (bbl.) per day of potable-quality formation water from the Miocene-age Palembang coal seams. Gas production was initiated almost immediately and is increasing as the well dewaters. Gas produced from the well is being consumed on site to drive the downhole pump.
Coring operations have been completed at the CBM-01 well. CBM Asia is awaiting final gas content and coal analysis reports. 4 1/2" casing has been run, cemented and perforated adjacent to the Palembang C coal seam at a depth of 1,380 - 1,404 feet.
"The rapid gas production to surface exhibited by the CBM-02 well confirms the high gas saturation previously measured on the Sekayu block and is consistent with results achieved by other CBM operators in the South Sumatra Basin", said CBM Asia's chairman Scott H. Stevens. "These well tests provide information needed to optimize the multi-well pilot design, which is expected to more effectively dewater the coal seams and achieve higher gas flow rates along with commercial production.”
• Newton Energy, the operator of the Kutai West PSC, plans to begin completion and stimulation operations on four coal seams in the KW-CBM-01 well in September 2013. Dewatering at this location will follow pending the results of the stimulation program.
CBM Asia, based in Vancouver, British Columbia, holds various participating interests in five production sharing contracts (PSCs) for CBM in Indonesia. Indonesia has one of the largest CBM resources in the world with a potential 453 trillion cubic feet in-place, more than double the country's natural gas reserves. Since 2008, a total of 54 CBM PSCs have been granted by the government of Indonesia, representing exploration commitments of well over US$100 million during the next 3 years.
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