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Highlights:
- NGY commences drilling TE-B06002, second well under Tanjung Enim POD 1 in Indonesia
- NuEnergy Gas targets initial output of 1 mmscfd from four-well CBM early gas sales program
- NGY shares rise 40% to AUD 0.028 following operational update on 9 July 2025
NuEnergy Gas Limited (ASX:NGY) has announced the commencement of drilling operations for the second well, TE-B06002, at its Tanjung Enim Production Sharing Contract (PSC) area in South Sumatra, Indonesia. The drilling forms part of the company's early gas sales program under the first Plan of Development (POD 1) for the Tanjung Enim coal bed methane (CBM) project.
The TE-B06002 well is the second of four planned vertical CBM wells targeting initial production of up to 1 million standard cubic feet per day (mmscfd). Drilling began on 7 July 2025, following the successful completion of the first well, TE-B06001.
The well is being drilled to a planned depth of approximately 416 metres, with operations focused on intercepting multiple coal seams between 245 and 370 metres below surface. The well will be completed using an open-hole configuration, a commonly applied method in CBM operations aimed at enhancing gas flow from the coal formations.
According to NuEnergy, the TE-B06002 location was selected to improve reservoir connectivity with the already-drilled TE-B06001, potentially enhancing overall productivity across the pilot program area. The same hydraulic top drive rig used in the first well was relocated to the TE-B06002 site to ensure continuity in operations.
This drilling activity represents a key step in progressing POD 1 of the Tanjung Enim PSC, which is situated within Indonesia's South Sumatra Basin — a region considered prospective for coal seam gas development. The company has been working with the Indonesian government and regional energy stakeholders to advance plans for near-term commercialisation of gas from CBM sources.
Upon completion of the four-well program, the company aims to begin initial gas sales from the pilot wells as part of its early production strategy. These sales are expected to serve as a precursor to wider-scale development across the PSC area.
NuEnergy Gas Limited is an Australian-listed gas exploration and development company focused on unconventional gas resources in Indonesia, with an emphasis on coal seam gas and CBM. The company’s portfolio includes several PSCs at various stages of exploration and development, with Tanjung Enim POD 1 currently being the most advanced.
The commencement of drilling at TE-B06002 follows ongoing efforts by NuEnergy to demonstrate the commercial viability of CBM in Indonesia.
On 9 July 2025, NuEnergy’s shares were trading 40.00% higher at AUD 0.028.
Further updates, including drilling progress and gas testing results from TE-B06002, are anticipated in the coming weeks as NuEnergy advances its early production and commercialisation plans in South Sumatra.






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