CBM Asia: Excellent Gas Quality at Kutai West PSC

CBM Asia reported excellent gas quality has been measured at the Kutai West Coalbed Methane Production Sharing Contract, located in East Kalimantan, Indonesia. Newton Energy Capital Limited operates the Kutai West CBM PSC, in which CBM Asia holds an 18% working interest.

Contractor PT GeoServices measured the composition of coalbed methane gas desorbed from eleven (11) coal samples cored from a depth of 317 to 842 meters in the CBM-KW-01 exploration well. All gas samples tested high in methane and very low in carbon dioxide. The methane content averaged 91.1%, while the CO2 content averaged 0.14%. Combustible ethane and propane also were present (average 0.5% each), while inert gas such as nitrogen accounted for the balance. The gas compositional testing indicates that the CBM gas in the CBM-KW-01 well is of high quality, suitable for transport via pipeline or conversion to LNG.

CBM Asia also reported that the fourth and final well, CBM-KW-03, reached a target depth at 1,000 meters. The exploration well, designed to delineate the coal extent at the south-eastern edge of the syncline in the C ‘sweet spot’ encountered 11.5 meters of net coal as expected.

With the aerial extent, coal thickness, gas content and gas quality of the C sweet spot confirmed the Kutai West partners are now planning development activities for the next exploration phase which will likely include a production pilot. The Kutai West block is adjacent to the Sanga-Sanga PSC, where BP, ENI, and partners (VICO) have been commercially producing coalbed methane and exporting it as LNG to north Asia since March 2011.

“With gas content levels exceeding 200 scf/ton and net coal thickness within sweet spot C of 25-32 meters we are excited to be moving toward the second exploration phase and begin the planning process for the production pilot program,” comments CBM Asia President and CEO Alan T. Charuk. “BP’s success in delivering CBM gas to the Bontang LNG and securing local gas sales contracts in the range of USD7.50/Mcf underscores the potential of the Kutai West PSC.”

[mappress]
LNG World News Staff, August 03, 2012