CBM Asia Development said that Indonesia-based PT Medco CBM Sekayu (MedcoEnergi), has notified the company that the third coalbed methane exploration well (CBM SE-03) in the Sekayu production sharing contract (Sekayu PSC) block located in the South Sumatra Basin, Indonesia, has been spud.

CBM-SE-03 will be a vertical well with a 3,300ft planned total depth, aimed at evaluating gas potential and reservoir properties of the two main coal groups of the Middle Palembang Formation, the upper Palembang Group and lower Pangadang Group.

As per the terms of the Sekayu PSC, the minimum work commitment requires a total of four wells to be drilled in the first three years.

CBM Asia Development is a Canadian-based unconventional gas company with significant coalbed methane exploration and development opportunities in Indonesia.