Apr 5, 2011

Bukit Asam drills first CBM well

The state-controlled coal miner PT Tambang Batubara Bukit Asam Tbk has conducted the first drilling on coring well in a bid to explore coal bed methane (CBM) in Tanjung Enim.
In a press statement submitted to Indonesia Stock Exchange, to develop CBM, Bukit Asam, via its subsidiary PT Bukit Asam Metana Enim, sets strategic partnership with PT Pertamina Hulu Energi Metana Sumatera Tanjung Enim and Dart Energy (Tanjum Enim) Ptd Ltd, previously named Arrow Energy (Tanjung Enim) Ptd Ltd.  
In line with the government project dubbed Pilot to Power 2011, the CBM is expected to supply gas for power plants. The CBM full development is targeted to reach a capacity of 50 MMSCF per day by 2013.
Based on a cooperation agreement, Bukit Asam Metana owns 27.5% interest in the CBM project, while Pertamina Hulu Metana owns 27.5% interest, and Dart Energy controls 45% interest. 
Referring to Directorate of Oil and Gas at Ministry of Energy and Resources, the CBP project is indicated to provide 0.8 trillion cubic feet of gas which will be utilized to fuel power plants and other industries. Bukit Asam, PT Inti Gas Energi, and the government have entered into production sharing contract on 1 April for Sijunjung block, West Sumatra.

Disclosure: No position at the stock mentioned above.

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