Coal bed methane reserves certification for NuEnergy Gas

KOTA KINABALU: Globaltec Formation Bhd’s Australia-listed subsidiary NuEnergy Gas Ltd has received the coal bed methane (CBM) reserves certification from the Indonesia Research and Development Centre for Oil and Gas Technology (Lemigas) for the Tanjung Enim Production Sharing Contract (Tepsc) initial plan of development (POD) target development areas.

In a filing with Bursa Malaysia yesterday, Globaltec stated that the CBM reserves certification has confirmed 86.05 Bscf of proven reserves (P1) and 78.84 Bscf for probable reserves (P2) giving a total gas reserves of around 165 Bscf for the target development areas covering 33 km2 (or 13% of the TE PSC acreage).

“This would enable NuEnergy to deliver 25 mmscfd to the market through the development of over 200 wells once the POD is approved,” it said.

Lemigas is the Indonesian government research and technology institution operating in the area of upstream and downstream oil and gas business and has key roles in the development of the oil and gas industry through research, engineering and development activities.

Commenting on the Indonesian CBM reserves certification by Lemigas, NuEnergy deputy executive chairman Kee Yong Wah said this certification was an endorsement and a very clear indicator of the underlying prospects of the Tanjung Enim asset and was in line with the group expectation of the coal seams in the South Sumatra region.

“The Tanjung Enim initial target development area only represents 1.4% of our total South Sumatra PSCs acreage of 2,280 km2 and we are excited about the huge potential of our other South Sumatra PSCs with the expectation that the Tanjung Enim target development area is a representation of the rest of these assets.

“We are into the final stages of the POD preparation and look forward to communicating more results,” he said in a statement yesterday.

“The group is primarily in the business of original equipment manufacturer (OEM) offering solutions and services such as design, development, precision tooling and machining, and assembly for automotive, radio frequency microwave, photonics and medical components/ products/systems.

“The Group has a 65% interest in NuEnergy Gas Limited (NuEnergy), a company listed on the Australian Securities Exchange. NuEnergy is an independent clean energy company focused on the development of Indonesian unconventional gas assets. It has a total of six onshore coal bed methane production sharing contracts in Indonesia, one of the world’s fastest growing economies and energy consuming markets.

“NuEnergy is also a pioneer of Indonesia’s clean energy industry, helping deliver reliable and robust energy supply to the people and businesses of Indonesia. Our focused strategy ensures we will soon become a significant Indonesian gas producer, maximising shareholder value and return at every opportunity.”

Globaltec is also involved in oil palm plantations in Sandakan, with a land size of 916 hectares of which 806 hectares are planted area.