Dart Reports First Gas at Sangatta West

Dart Energy Limited has announced the first gas flows at the Sangatta West project in East Kalimantan, which is among the first in Indonesia from a dedicated coal bed methane pilot well.

The SCBM#1 pilot well at the Sangatta West project began flowing gas in a controlled operation on March 25 after the installation of a down hole pump simultaneous with the dewatering process. Continual gas flow has been sustained since that time. Dart and its joint partners in the project understand this to be the first dedicated CBM Production Sharing Contract (PSC) well in Indonesia to successfully release gas.

Dart says that SCBM#1, the first of four pilot wells planned for Sangatta West, was drilled in February, 2011 to a depth of 830 metres.

Well testing over the next two to three months will determine production and reserves potential, once a stabilised gas flow is achieved.

Sangatta West CBM Inc., is a joint-venture company that operates the Sangatta West CBM Production Sharing Contract (PSC) in East Kalimantan. The JV partners are joint operators Ephindo Energy (with a 24 percent indirect interest in the PSC) and Dart (24 percent) and non-operating partner PT Pertamina-Hulu Energy Metana Kalimantan-A with a 52 percent participating interest.

It is intended that gas produced from SCBM#1, along with that from other planned pilot wells at Sangatta West, will initially be sold under an approved pilot-to-power scheme.

Dart’s operating partner in Sangatta West, Ephindo, has signed a memorandum of understanding with GE and local gas-fired genset supply company, Navigat, with an aim to supply gas-fired electricity to the local grid.

Source: Dart Energy