CBM Asia Reviews Indonesia CBM Operations
CBM Asia in a review of its Indonesian operations said that to date the company and its operating partners have successfully drilled and tested a total of eight coal bed methane exploration wells at two Production Sharing Contract (PSC) areas in country.
This resulted in 981 Bcf of recoverable prospective resources net to the company, it said.
“Qualified Reserves Evaluator Netherland, Sewell and Associates, Inc. (NSAI) has independently evaluated these data and estimated 981 Bcf of recoverable prospective gas resources, net to the company. NSAI has estimated the overall probability of commerciality at 50%. Subsequently, gas flow and permeability tests have been conducted further derisking the assets. The two blocks evaluated by NSAI represent just 6% of the company’s total net acreage in Indonesia,” CBM Asia said in a statement.
The company further said that CBM gas prices in Indonesia range from $7.50/Mcf for local power generation at VICO’s Sanga-Sanga PSC to nearly $20/Mcf for gas exported from the Bontang LNG facility and if the company is successful at producing and selling its 981 Bcf at these prices, gross revenues could range from $7.5 to nearly $20 billion.
During 2013 the CBM Asia progressed towards further expanding its resource base in Indonesia.
After signing the JV umbrella agreement with ExxonMobil to farm into four PSC’s in the Barito Basin, CBM Asia and ExxonMobil have jointly developed and submitted the detailed exploration plans required by regulator SKK Migas.
On the commercial side, the company has been working towards establishing gas off take agreements with multinational companies.
“We signed an agreement with Linde Group to jointly conduct a CBM-to-LNG supply study of up to 50 MMcf/d in the Barito Basin. We also signed a CBM-to-Power agreement for up to 5 million ft3/day with Navigat Energy. The quality of our production and offtake partners significantly enhances the company’s ability to project finance future development and generate significant cash flow,” the company said.
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