Globaltec’s NuEnergy gets Indonesia cert for methane reserves

PETALING JAYA: Globaltec Formation Bhd’s Australian exchange-listed subsidiary, NuEnergy Gas Ltd, has made a significant step to developing gas reserves for the Tanjung Enim Production Sharing Contract in Indonesia, having secured the requisite coalbed methane (CBM) reserves certification from the Indonesia Research and Development Center for Oil and Gas Technology (Lemigas).

The certification is one of the required processes in the CBM plan of development (POD) preparation and forms the basis of the overall POD. Once the POD is approved, CBM commercial development may commence for that specified resource.

The CBM reserves certification has concluded with findings of 86.05 Bscf (billion of standard cubic feet) of proved 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 Tanjung Enim PSC acreage) that would enable NuEnergy to deliver 25 MMSCFD (million standard cubic feet per day) to the market through the development of over 200 wells once the POD is approved.

“This certification is an endorsement and a very clear indicator of the underlying prospects of the Tanjung Enim asset and is in line with our 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,” NuEnergy deputy executive chairman Kee Yong Wah said in Globaltec Formation’s filing with Bursa Malaysia.

On Bursa Malaysia yesterday, Globaltec Formation’s share price was up half a sen or 10% to close at 5.5 sen with 61.9 million shares done.