By Romel S. Gurky
Australia-listed coal-bed methane (CBM) developer NuEnergy Gas Limited announced on Tuesday that the Ministry of Energy and Mineral Resources (MEMR) has granted gas allocation approval for Dart Energy (Tanjung Enim) Pte Ltd (DETE), a wholly owned subsidiary. The approval is for the sale of 1 MMSCFD of CBM under the Tanjung Enim Production Sharing Contract (PSC) in South Sumatra.
This approval marks a major milestone in NuEnergy’s Early Gas Sales Initiative, which is part of the company’s plan to gradually ramp up production. The 1 MMSCFD allocation is part of an eventual 25 MMSCFD production plan approved under the Tanjung Enim Plan of Development 1, the company said in a filing with the ASX.
Read also : NuEnergy begins drilling final CBM well at Tanjung Enim for early gas sales
With the gas allocation in place, DETE will now move forward with finalizing the Gas Sale and Purchase Agreement with gas distribution firm PT Perusahaan Gas Negara Tbk (PGN) (IDX: PGAS).
NuEnergy has completed drilling on three of the four wells planned under the Early Gas Sales Initiative, with controlled gas production progressing as expected. Drilling on the fourth well is still underway.
Editing by Alexander Ginting
