NuEnergy Gas has identified 36 metres of net coal seams and 13 metres of continuous coal at its second pilot production well at South Sumatra, Indonesia.
The well has been drilled to target depth of 802 metres with partner Pertamina, as part of their Muara Enim production sharing contract.
NuEnergy holds a 40% interest with Pertamina controlling the remaining 60%.
The first well, located 500 metres away, has been producing gas for over 4 months days as it progresses towards gas sales to compressed natural gas producer Dharma Pratama Sejati.
Dharma Pratama Sejati has agreed to offtake between 1 million and 5 million standard cubic feet of gas at US$10 per million British Thermal Units.