NuEnergy raises $10m from second share placement
Thursday, December 18 2014 - 01:42 AM WIB
ASX-listed NuEnergy Gas Limited said it has on Wednesday completed the second share subscription agreement (SSA) with New Century Energy Resources Limited (NCE) and its nominee, Globaltec Energy Resources Sdn Bhd (GER).
The company said in a statement Thursday that the second share placement raised A$10 million for NuEnergy to help finance the development of its coal bed methane production sharing contracts in Indonesia.
?NuEnergy?s focus will be on well drilling and completion at its Indonesian Production Sharing Contracts (PSCs) with a view to flowing gas and subsequently booking reserves,? the statement said.
?NuEnergy has entered into commercialization undertakings for the supply of Coal Bed Methane (CBM) to a local peaking power station at a price of $US10 per mmbtu and is evaluating early pilot production potential for Compressed Natural Gas (CNG) operations,? it added.
The SSA implements the second stage of funding under the amended and restated investment agreement signed NCE on July 10, 2014, as amended August 18, for the placement of shares to NCE or its nominee.
NuEnergy made 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).
Elsewhere, NuEnergy announced that Kok Keong Kong (Non-Executive Director) will replace Graeme Robertson as Non-Executive Chairman. Robertson will remain as a Non-Executive Director of NuEnergy.
Under the terms of the agreement NCE has the right to appoint one additional director to the Board of NuEnergy on completion of the second share placement. The company welcomes Datuk Seri Panglima (Dr.) Goh Tian Chuan as Director of NuEnergy.
Goh is the Group Executive Chairman of Malaysia-listed Globaltec Formation Berhad, which owns 60 percent of NCE. He graduated from the Royal Malaysia Police College in 1982 and was a Senior Police Officer attached to the Royal Malaysia Police Contingent Sabah in Kota Kinabalu, Sabah for thirteen (13) years. Since leaving the police force in 1994, he has run his own businesses, which apart from his investments in several public listed companies, cover a multitude of industries from investment holding to plantation and property development.
NuEnergy also announced the resignation of Jonathan Warrand from the Board of NuEnergy effective from the date of this announcement.
Editing by Reiner Simanjuntak