January 16, 2012
SUCCESSFUL COMPLETION OF MUARA ENIM COAL BED METHANE (CBM) WELL
Highlights
1. Successful completion of coring and logging at Muara Enim reaching a depth of 733 metres.
2. A total of 38.2 metres (net) of coal was confirmed from coring and logging operations.
3. One contiguous 19 metre coal seam identified.
4. Gas content calculation by Geoservices & Geogas is expected to be completed during next month.
Muara Enim Results & the 2012 Muara Enim PSC Drilling Plan
1. Results of the Muara Enim well are consistent with the previous estimates for prospective gas-in-place provided by PT Trias Energy Perkasa (2011) and RISC (June 2010).
2. After completion of the next well NuEnergy, together with Netherland Sewell and Associated Indorporated (NSAI), plan to generate an independent report confirming the prospective and contingent gas resources in NuEnergy’s Muara Enim CBM concession.
3. The drilling rig is currently preparing to move to the second Muara Enim drill site located 5 kilometres to the west and it is planned to drill to a depth of 1,000 metres.
4. After the completion of the second Muara Enim well, NuEnergy will consider fast-tracking the extraction process by drilling a pilot production well to be completed in 2012 in the Muara Enim Production Sharing Contract (PSC) area.
Muara Enim, Muara Enim II & Rengat PSC’s
Muara Enim PSC is located in the prolific South Sumatra coal basin and the PSC covers an area of 652.6 km2. Mura Enim PSC is adjacent to the NGY operated Muara Enim II PSC which covers an area of 1170.9 km2.
Both PSC’s and the surrounding areas have been drilled for over 100 years and the basin has been subjected to extensive seismic and drilling operations during that period. The continuity of the thick Mangus and Subam coal seams has been proven over this period. Both PSC’s have major power and gas lines running through them providing immediate market access.
Muara Enim PSC is operated by the wholly owned subsidiary of NuEnergy Gas, PT Trisula CBM Energi. NuEnergy Gas’s joint venture partner under the PSC is Indonesia’s National oil and gas corporation, PT Pertamina (60%).
Rengat PSC, 100% NuEnergy Gas controlled and operated, is located in the central Sumatra coal basin. This PSC covers an area of 3000km2 and is in the vicinity of major gas pipeline infrastructure. The company plans to seek a JV partner for this PSC in Q1/2 2012.
Location Map – Muara Enim & Muara Enim II PSC’s
