NuEnergy satisfied with CBM project due diligence

Australian firm NuEnergy Capital Limited said on Monday that it has completed and is satisfied with the results of its due diligence on Indon CBM limited it is seeking to acquire.

Indon CBM is an Australian public company which has an interest in proposed coal bed methane (CBM) projects in Indonesia.

NuEnergy announced on November 8, 2007 that it had signed deal to purchase all shares of Indon CBM Limited, a company that has right to explore for CBM in South Sumatra and Tarakan basin in East Kalimantan.

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, NuEnergy said on Dec 24, last year.

NuEnergy will pay A$19.2 million in shares for the acquisition. (denny)