NuEnergy reports S. Sumatra CBM project progress

The following is an edited excerpt taken from Australian firm NuEnergy Capital Limited?s quarterly report ended 31 March 2010 released on Friday.

During the quarter the Company has continued to progress its acquisition of Indon CBM Limited (Indon CBM) (Acquisition).

On 16 June 2009, the Company advised that Indon CBM, through its 95% owned Indonesian domestic entity PT Trisula CBM Energi (Trisula) had entered into a formal Cooperation Agreement with PT Pertamina Hulu Energi (Pertamina), a company within the Pertamina group (the Indonesian state owned oil and gas enterprise), in respect- to the establishment of a consortium to evaluate the South Sumatra II Project.

On 30th November 2009, two significant CBM Production Sharing Contracts (PSC) were awarded for South Sumatra CBM Concession II Project and Rengat CBM Project. During the quarter signature bonuses of USD$2m were paid to the Indonesian authority BPMIGAS and Indon submitted the required performance bonds for both projects. Planning for work programs has commenced and contractor selection is under consideration. During the quarter lndon completed a study on the infil areas of South Sumatra and the third application area presently under consideration, the Banyu Tarakan Block, in East Kalimantan.

The Company is required to obtain shareholder approval for the Acquisition to satisfy various regulatory and statutory requirements. The shareholder meeting materials are presently under preparation and it is anticipated a General Meeting will be called soon.

Appointment of Chief Executive officer
During the quarter the Company advised that Paul Underwood had been appointed as CEO of the Company. (end of edited excerpt)