Globaltec to acquire RI CBM assets

Malaysia-listed Globaltec Formation Bhd, the merged entity of AutoV Corp Bhd, AIC Corp Bhd and Jotech Holdings Bhd, is about to become a full-fledged oil and gas exploration and production company with a focus on unconventional resources, The Star reported on Saturday.

The company is acquiring a 60 percent stake in New Century Energy Resources Ltd (NCE) for US$100,000 (RM320,000), which will soon be asset owner and operator of three coal bed methane (CBM) concessions in the south and central of Sumatra.

Globaltec told Bursa Malaysia it is also acquiring a 60 percent stake in New Century Energy Services Ltd (NCES) for US$100,000 in cash.

NCE is an investment holding company involved in the exploration and production of oil and gas with a primary focus in unconventional oil and gas assets. Meanwhile NCES provides services for the unconventional oil and gas market.

The concession owner for the Indonesian fields is NuEnergy Gas Ltd (NGY), an Australian listed gas and ancillary power generation development company, which focuses on unconventional gas in Indonesia.

NGY has 3 production sharing contracts in South and Central Sumatra, covering 3,978 square kilometers. NGY is the operator of all 3 PSCs which are Muara Enim (40% share), Muara Enim II (30% share) and Rengat (100% share).

Globaltec will take control of NGY?s concessions because NCE will subscribe for 83.3 million shares in NGY for 3 Australian cents (8.91sen) to raise A$2.5mil (RM7.4mil), thus owning 19.9 percent of NGY.

NCE will then appoint three of its own directors to replace the existing three directors in NGY.

NCE will further subscribe to shares of NGY and participate in its rights issue for a total commitment of A$10mil (RM29.7mil), to be completed by Dec 31, 2014 for a minimum price of 3 cents.

Globaltec executive chairman Goh Tian Chuan told The Star that this is one of the best opportunities of growth for the company, as for a relatively low cost, it will immediately become operator and asset owner in the hydrocarbon-rich area of Sumatra.

For the PSCs in Muara Enim and Muara Enim II, NGY had in September 2012 received a Netherland Sewell and Associates Inc independent resource estimate of 4.2 trillion cu ft of prospective gas resources in these fields.

Goh said the plan is for NCE to drill three wells in the first quarter of 2015. ?As NCE has conducted seismic studies over the last one year and secured all required approvals, drilling can start almost immediately,? said Goh.

The concession fields have well-established pipeline infrastructure that connects the fields to Sumatra, Singapore, East Kalimantan and the Jawa markets.

These pipes have capability of handling 1.2 billion cu ft of gas per day. (*)