NuEnergy seeks to raise $10m

By Romel S. Gurky

ASX-listed NuEnergy Gas Limited (NGY) announced Monday a partially underwritten non-renounceable Entitlement Offer of one (1) new share for every 1.88 shares held on the record date of December 4, 2015 will be made to eligible shareholders of NGY at the issue price of $0.025 (2.5 cents) per share, to raise A$10 million before transaction costs.

The company said in a statement that the Entitlement Offer is partially underwritten (being up to 178,276 616 new shares or approximately up to 45 percent of the Entitlement Offer) by existing directors, Kee Yong Wah and Goh Tian Chuan and Darulnas (M) Sdn Bhd, a company controlled by Kong Kok Keong, Chairman of NGY.

The underwriting parties will be paid underwriting fees of 3 percent of the value of the amount underwritten, the company said. The amount underwritten excludes the entitlements of NGY?s two largest shareholders, who have each advised the company that they will be taking up their entitlements in full.

This Entitlement Offer includes a Shortfall Share Offer that enables eligible shareholders (other than related parties of the company) who take up their full Entitlement to apply for shares in-excess of their pro-rata entitlement.

The company said it has today released an Offer Document for the Entitlement Offer outlining the full details of the Entitlement Offer.The closing date for acceptance of entitlements is intended to be 5.00 pm Sydney time on December 18, 2015.

NuEnergy said funding raised will be used for exploration and appraiser activities including resources migration and reserves certification.

NuEnergy has three Production Sharing Contracts (PSCs) in South and Central Sumatra, covering 4,819 square kilometers. The company is the operator of all three, as follows: Muara Enim (40% participating share); Muara Enim 2 (30% participating share); Rengat (100% participating share).

Editing by Reiner Simanjuntak