NuEnergy announces Rengat farm-out delay
Tuesday, April 8 2014 - 01:06 AM WIB
Australian CBM developer NuEnergy Gas Limited announced on Tuesday the delay of its proposed 49.9 percent farm-out of its interest in Rengat CBM PSC to an unidentified Asian investor.
Farm-in agreement is initially scheduled to be clinched on March 31, 2014 with Condition Precedent Satisfaction expected in July 2014.
?NuEnergy now expects to complete agreement in the fourth quarter of full year 2014,? the company said.
The company said in February 2014 that the proposed farm-in party has extensive experience in the CBM service industry and with drilling and completion techniques that can significantly enhance the productivity of the CBM wells. The company will pay NuEnergy US$2.7 million in cash plus provide a full carry on 3 core and 3 pilot production wells, with the full value of the carry program being estimated at US$10-12 million.
NUEnergy has 100% interest at rengat CBM PSC, which is located in Riau.
Editing by Reiner Simanjuntak