NuEnergy, NCE sign amendment of investment agreement

By Romel S. Gurky

ASX-listed NuEnergy announced Tuesday the signing of an amendment to the binding investment agreement with New Century Energy Resources Limited (NCE) as announced on July 11, 2014.

The amendments clarified the two-stage investments in NuEnergy by NCE as follows:
1. Upon completion of the NuEnergy Share Placement (expected this week), NCE shall be entitled to appoint two of its nominees as directors of NuEnergy (of the total number of five directors). Graeme Robertson, the existing Chairman, shall remain as Chairman of the Board.
2. The Additional NuEnergy Funding (second stage) and the following changes to the composition of the NuEnergy board shall be subject to the approval of the shareholders of NuEnergy.

Upon completion of the additional NuEnergy funding of minimum A$10 million before December 31, 2014, NCE shall be entitled to appoint three directors out of the total number of four directors of the NuEnergy board, by appointing one more director to the NuEnergy board whilst two existing directors of NuEnergy (not including the directors appointed by NCE) shall resign. The chairman of the NuEnergy board shall become one of the directors appointed by NCE.

NCE has extensive experience in the coal bed methane (CBM) exploration and production industry, including subsurface (geological, geophysical & reservoir), well drilling, completion and production techniques that can significantly enhance the productivity of CBM wells. NCE is 60 percent owned by Globaltec Formation Berhad, a public company listed on the Bursa Malaysia main market.

NuEnergy first signed in July the investment agreement with NCE to recapitalize the development of its three CBM production sharing contracts in Indonesia including the Muara Enim PSC, Muara Enim II PSC (in South Sumatra), and Rengat PSC (Central Sumatra).

Editing by Reiner Simanjuntak