NuEnergy Gas Inks Investment Agreement for Indonesia CBM Projects

Australia listed NuEnergy Gas announced Friday signing of investment agreement with New Century Energy Resources Limited (NCE) to recapitalises the company and fund the development of the Indonesian Production Sharing Contracts (PSCs).

NCE has extensive experience in the CBM E&P industry, including subsurface, well drilling, completion and production techniques that can significantly enhance the productivity of CBM wells, according to NuEnergy.

NCE will pay a deposit of $200,000 to obtain exclusivity and commence due diligence for 30 days and subject to successful completion of the due diligence will subscribe for circa 83 million NGY shares at $0.03  to raise $2.5 million.

Subsequent to the share placement, Graeme Robertson will resign as Non-Executive Chairman and remain as a non-executive director of NuEnergy, the company said. NCE will appoint three directors to replace the remaining three directors of the company.

As part of the recapitalisation of NuEnergy the company intends to solely focus on its three Indonesian PSCs. NuEnergy’s core PSCs in South Sumatra will be the primary focus with the company aiming to drill further pilot wells  at its Muara Enim  PSC and commence drilling at the Muara Enim II PSC, including a focus on the western area.

The secondary focus in Indonesia will be completing a farm out transaction for the Rengat PSC focusing on drilling wells that intersect the identified 15 metre coal seam revealed after extensive geological and geophysical work completed in 2013.