Sydney-listed NuEnergy Gas’ gas discovery in the Muara Enim production sharing contract area in Indonesia has been confirmed by the country's upstream regulator, SKKMigas, the company said on January 21.  

SKKMigas has also acknowledged the completion of NuEnergy's exploration commitments at Muara Enim, and has allowed the company to submit a plan of development within the next three years.  

“This represents a positive step in NuEnergy’s ongoing strategy to develop the company’s coalbed methane assets in South Sumatra and demonstrates a solid level of support from the Indonesian authorities keen to see the development of unconventional gas within Indonesia,” it said. 

NuEnergy has a 40% working interest in the Muara Enim, covering an area of 587 km² located in South Sumatra, which is in the vicinity of a major gas supply pipeline servicing a significant portion of Indonesia. NuEnergy has drilled two core hole wells, two exploration wells, and one production test and dewatering bore in the area.