NuEnergy seeks to raise $20m to develop Tanjung Enim PSC

By Romel S. Gurky

Courtesy of NuEnergy

ASX-listed NuEnergy Gas Limited (NGY) announced Thursday a renounceable pro‐rata Entitlement Offer of one new share for every two shares held on the Record Date of April 20, 2017 will be made to Eligible Shareholders of NGY at the issue price of $0.035 (3.5 cents) per share, to raise $20 million before transaction costs.

NGY said in a statement that 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 directors of NGY reserve the right to issue New Shares under the Shortfall Share Offer to eligible applicants at their discretion.

The company 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 May 5, 2017.

As previously announced, NGY achieved a significant milestone in February 2017 when it received the first independent certification of reserves for its Tanjung Enim PSC Pilot Production Program (TEPPP), which supports the company?s belief in the future potential of its Tanjung Enim PSC asset. It is the first step to unlocking substantial value to move the asset towards commercialization.

With the results of the TEPPP 2016 work program and Reserves Certification, NGY is ready for discussion with the Government of Indonesia on the Plan of Development (POD). ?Our main focus in the next twelve months is to prepare and secure the POD that will enable the Tanjung Enim PSC to proceed to full scale development and move NGY one step closer to commercialization.

While the company works to complete the POD submission, further exploration activities to upgrade resources and reserves will be carried out in 2017 in the other South Sumatra PSCs to prepare these PSCs for POD. With the large resource size of NGY?s PSC portfolio in South Sumatra, the company said it has the potential to develop its South Sumatra PSCs to provide the scale of operations and synergies for a large scale CBM gas supply.

Editing by Reiner Simanjuntak