Over the past 18 months, this ASX company has restructured and minimised costs in a bid to ride out the oil market downturn, whilst building a portfolio that could transform the company from being a tiny Indonesian oil and gas explorer to become a prominent hydrocarbon producer in the region, in line with an anticipated industry pick up in 2017.
Energy experts predict that CBM has the potential to create a new, global energy frontier, especially following recent trends in the five coal-mining states of the northeast United States by Exxon Mobil, BP and Total, trends which look set to propel CBM exploration into the limelight. The government is finalizing a specific regulation to lower gas prices for industrial customers, to help local industries compete against imported goods. Rekotomo) The government is optimistic it can successfully auction off three unconventional oil and gas fields due to several incentives being offered this year despite continued low global oil prices.Unlike previous years in which contractors must “take it or leave it”, the government will now allow bidders to propose their own estimate of the sharing split for the government.The well should take around 15 days to complete, including testing time, so it won’t be long until results come through.Site preparation is complete, the rig has been mobilised with rig up currently ongoing and with a recent 0k capital raise complete, this company will now be finding out a whole lot more about its two well-defined prospects.But these same characteristics dictate high employment and the strong economic growth: the Marcellus Basin development is now creating 15,000 jobs a year.Studies have shown that there is as much as 5.1 trillion cubic meters of CBM in two large basins in East and South Kalimantan – areas where Ephindo are already massively invested.But we still have to prove that CBM is commercial and raise awareness of the fact that CBM is completely different to conventional gas. It is a very good market.”His confidence is based on well thought-out strategy: “The basins we have chosen represent almost 70% of the Indonesian CBM resources.14 April 2017 (to take effect 21 days from date of Order).The Energy and Mineral Resources Ministry’s upstream oil and gas business guidance director, Tunggal, expressed his optimism that the new incentives would help boost the unconventional gas fields, notoriously known for being both expensive and difficult to explore and exploit. Although I cannot measure the investors’ abilities, now is the time to invest since commodity prices are low, meaning that service costs are low,” he told reporters earlier this week.The ministry is auctioning off one shale hydrocarbon field and two coal bed methane (CBM) fields this year.