The Sangatta I CBM PSC is located in eastern Kalimantan and was signed on 13 November 2008. Ephindo has an effective economic interest of 24% in the PSC and is joint-operator, via its holding in Sangatta West CBM Inc. (SWCI), which is jointly owned by Dart Energy Ltd. Our other partner in this block is Indonesian national oil company, Pertamina, with a 52% working interest. The block originally covered an area of 1,301 km2, but has since been reduced to 1,168 km2 following a 10% mandatory relinquishment.
The three year work commitment is: G&G studies; eight core holes; and five exploration wells. To date three core holes and four pilot holes have been completed in the south-east portion of the block, with gas flows being established from March 2011. For further details read our Press Release – Successful completion of Sangatta I drilling program.
Sangatta I is the first CBM PSC in Indonesia to have publicly certified reserves and resources. Partner Dart Energy has disclosed recoverable reserves of 38 bcf (proven, probable and possible) and contingent resources of 273 bcf (2C recoverable), located in the 78 km2 south eastern sub-block. In addition, the larger western sub-block is assessed to have prospective resources of 192 bcf (best estimate, recoverable).
In the nearer term, the joint venture plans to sell gas from its pilot wells for use by PLN in a 1MW gas-fired power generation unit. This unit will supply electricity for the project itself, as well as the power-starved city of Sangatta, which currently relies on costly diesel-fired power for a large part of its needs.
The markets for a potential full-field development could include power generation, local industry or export markets. The latter markets would entail the gas being converted to liquefied natural gas (LNG) at the nearby Bontang facility, which is located approximately 60 km south of the SE portion of the block where drilling activity to date has been focused.
|Total Area||1,168 sq. km²|
|Typical Seam Thickness*||2-7m|
|Coal Quality||Sub-bit./Hi vol bit.|
|Effective Participating Interests|
|*Held via Sangatta West CBM Inc.|
Note: Ephindo and Dart hold their interests via a jointly owned (50/50) special purpose vehicle, Sangatta West CBM Inc.
Catch up on all the latest Ephindo Energy News, Press Releases and Presentations.
Contact Ephindo Energy
Need to get in touch? Use our convenient online contact form to send us your message.