Newton Energy Tests First CBM Well at Kutai West CBM PSC

Newton Energy Capital Limited has successfully tested the first coal bed methane exploration test well at the Kutai West coalbed methane production sharing contract block, located in East Kalimantan, Indonesia, CBM Asia said in a statement. CBM Asia holds an 18% working interest in the Kutai West CBM PSC.

Well logs indicate approximately 25 meters of coal were penetrated in the target Balikpapan Formation. Preliminary gas content values range from 75 to 175 scf/t. Permeability averaged approximately 5 to 10 millidarcies. Final laboratory results are pending.

Drilling operations are now on for the second core well located north of the initial location.

CBM Asia has also said that VICO Indonesia began commercial CBM production in March 2011 from the adjoining Sanga-Sanga PSC and is exporting the gas through the Bontang LNG facility to North Asian consumers