NuEnergy finalizes investment agreement with NCE
Thursday, January 29 2015 - 06:49 AM WIB
ASX-listed NuEnergy Gas Limited announced on Thursday that it had finalized the second stage share placement for AS10 million under the binding Investment Agreement with a strategic Asian investor, New Century Energy Resources Limited (NCE).
The company stated in a press release on Thursday that by concluding the the agreement, the Company is now looking forward to an extensive drilling campaign in 2015 under its new look Board and management.
The NCE continues to provide impressively strong technical capabilities and service skills for Coal Bed Methane drilling and well completion. NCE believes the Production Sharing Contracts (PSCs) held by NuEnergy are potentially world class assets and can be commercialised quickly to provide early benefits to shareholders.
The tender process for drilling and completion has begun with a view to commencing drilling in the next quarter. The new CEO and his team have identified drilling sites for both the Rengat and Muara Enim II PSCs and will settle on a drilling contractor in the current quarter.
The new senior management team together with NCE and partner, PERTAMINA, provide an exciting formula as NuEnergy progresses to successfully develop CBM in South Sumatra.
As part of the recapitalisation of NuEnergy, the Company intends to solely focus on its three Indonesian Production Sharing Contracts (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.
Drilling is set to commence at the Muara Enim II PSC during the next quarter with the tendering process currently underway.
The Muara Enim and Muara Enim II PSC?s are located in South Sumatra. Together they comprise an area of 1,861 km2. NuEnergy has a 40 percent interest in Muara Enim and 30 percent in Muara Enim II.
NuEnergy is also focussing on drilling wells at the Rengat PSC that intersect the identified 15 metre coal seam revealed after extensive geological and geophysical work completed in 2013. The Company also expects to commence drilling at Rengat during the next quarter. NuEnergy has a 100 percent interest in Rengat PSC located in the Central Sumatra.
Editing by Benget Besalicto ST