Berita

PME Indonesia

JAKARTA - Ephindo CBM Holding Inc (Ephindo) announces the progress of Sangatta 1 Coalbed Methane (CBM) PSC block drilling operation in East Kalimantan is well on schedule. The block is in the resources identification phase and production and gas sales are estimated to begin as early as next year, in line with the Government of Indonesia’s intention to produce CBM gas by 2011.

The initial gas production from this block can be utilized to generate electricity for local consumers, as the government is now pushing to prepare the CBM regulation which will allow CBM to be sold before a Plan of Development, instead of flaring it. The block is located within a relatively short distance from the Bontang LNG facility where gas may also later be delivered.

Ephindo and Arrow Energy of Australia jointly operate the block through their subsidiary Sangatta West CBM Inc in partnership with Pertamina Hulu Energy. The PSC permit area contains coals of the Miocene age (Balikpapan Formation), with possible coal thicknesses of up to 80 metres.

Total net coal intersected in the first two wells ranges from 25 to 40 metres. Analyses indicates good gas saturation of the coal (80% and higher) with total gas up to 12 m³/ton (424 scf/ton) at 800 metres depth. A permeability of greater than 20 mD is also indicated.

Ephindo is Indonesia’s first and leading coalbed methane company with interests in three CBM PSC’s, two of which are presently being drilled. (PME-01/SGT)