NuEnergy extends CBM projects due diligence completion date

Australian firm NuEnergy Capital Limited announced on Monday it had agreed to extend due diligence deadline on Indon CBM acquisition to January 25, 2008.

The company announced on November 8, 2008 that it had signed deal to purchase all shares of Indon CBM Limited, a company that has right to explore for coal-bed methane (CBM) in South Sumatra and Tarakan basin in East Kalimantan. The company said it expected the deal to be completed by January 2008.

Under the deal Indon CBM will be entitled to up to 45 percent of the net production from both projects. Indon CBM is also in the process of acquiring another acreage in South East Kalimantan.

The company will pay the vendor A$19.2 million, payable by shares. (alex)