Dart Energy to Enhance CBM Operations in Indonesia, India

Dart Energy expects to get more coal-bed methane (CBM) licenses and enhance operations in countries like Indonesia and India this year, the company said in its quarterly report Monday. 

In Indonesia, the company has continued due diligence work on two CBM blocks in Tanjung, South Kalimantan with a view to securing new licenses through both direct award and farm-in. Award of new PSCs is targeted for first half of this year.

The company is also in a joint study with government of Indonesia for the Bontang Bengalon block. The PSC bid for this block will be subject to the results of this joint study and will likely take place in early second quarter of 2012. The block consists of two areas, one is located adjacent to the Sangatta West northern boundary and the other one is located in proximity of the Bontang LNG plant.

In Prabhatpur, India, data obtained from two core wells was analysed to plan and design eight proposed pilot wells.  Drilling of pilot wells is expected to commence in first quarter of 2012 upon incorporation of a joint venture company.  Dart Energy is in discussions to connect these wells to a local CNG producer and commence initial gas sales during 2012.

Dart Energy and Electrosteel continued discussions for the use of gas extracted from the degassing of Electrosteel’s coal mine in Prabhatpur,  including potential off-take by domestic compressed natural gas operators.

Dart Energy and Tata Steel, subject to commercial negotiations, will explore opportunities to degas coal mine methane from other coal mines owned by Tata Steel in Jharkhand, India aimed at making mining safer, environmentally beneficial and at the same time, realising economic  value from the gas so produced.