NuEnergy signs SPA to acquire Dart Indonesia

By Ruli Setiawan

ASX-listed NuEnergy Gas Limited (NGY) said it signed on Wednesday a conditional Share Purchase Agreement (SPA) with Dart Energy International Limited to acquire 100 percent of the issued share capital of Dart Energy (Indonesia) Holdings Pte Ltd (Dart Indonesia).

The company said in a statement Thursday that Dart Indonesia, through its group controlled companies has a number of CBM assets including 45 percent participating interest in Tanjung Enim CBM PSC (in South Sumatra), 50 percent participating interest in Muralim CBM PSC (South Sumatra), 100 percent participating interest in Bontang-Bengalon CBM PSC (East Kalimantan), and rights to the Joint Evaluation of Bungamas CBM (South Sumatra).

The acquisition of Dart Indonesia is for a cash consideration of US$1million to be funded from NGY?s available cash.

?NGY is expected to boost its PSC positions in Sumatra by integrating Dart Indonesia?s PSCs and NGY?s PSCs to potentially operate a large scale CBM development which is unprecedented. We believe these PSC assets are potentially world class CBM plays and can be commercialized quickly, thereby providing early benefits to our shareholders,? said NGY Chairman, Koko Keong Kong.

NGY currently has three core PSCs in South and Central Sumatra including Muara Enim (40% participating interest), Muara Enim II (30% participating interest), and Rengat (100% participating interest).

Muara Enim PSC is the highest priority with 3 wells already drilled, logged and cored to evaluate the potentiality of the gas production. These wells have been converted to pilot production wells.

NGY is expected to commence drilling in Rengat during the quarter and Muara Enim II in the next quarter.

Dart Indonesia and NGY are two of the leading CBM explorers and developers in Indonesia. The activities of exploration in the Tanjung Enim PSC and Muralim PSC have been professionally planned and executed, from which the same set of reservoir parameters with NGY?s PSC were revealed.

The addition of Dart Indonesia?s PSC assets, mainly Tanjung Enim PSC which is adjacent to the west of NGY?s Muara Enim PSC and Muara Enim II PSC, will enable them to be evaluated and developed as a whole and provide the necessary synergy to NGY to achieve commercialization in the shortest time.

Following is brief description of Dar Indonesia CBM assets.

Tanjung Enim PSC
Tanjung Enim PSC is located in Muara Enim Regency, South Sumatra Province. This PSC was awarded by upstream oil and gas regulator SKK Migas (formerly known as Badan Pelaksana Usaha Hulu Minyak dan Gas/Implementing Body of the Oil and Gas Upstream Activities) (BP Migas) on 4 August 2009 for 30 years. The exploration period under the PSC is 6 years up to August 2015.

The contract area comprises a total of 313 square kilometers containing an average of 65 meters to 70 meters net coal thickness, low rank coal seams ranging in depth from 300 meters to 700 meters with an average reported gas content of 120 standard cubic foot (?scf?)/ton. With these geological and technical parameters, Tanjung Enim PSC is among the CBM PSCs in Indonesia which have high potential for commercial CBM development and is close to existing oil and gas infrastructure and markets.

Muralim PSC
The Muralim PSC was awarded on 3 December 2010 for 30 years. The exploration period under the PSC is 6 years up to December 2016.

The Muralim PSC is located in 3 regencies, namely Musi Rawas, Lahat and Muara Enim. The contract area comprises a total 835 square kilometers. Wells drilled in mid-2012 have indicated average net coal thickness of around 29 meters to 30 meters, low rank coal seams ranging from depth of 500 meters to 700 meters with an average gas content of 105 scf/ton. Muralim PSC is located adjacent to Tanjung Enim PSC, which is also among the CBM PSCs in Indonesia which have high potential for commercial CBM development.

Bontang Bengalon PSC (BB PSC)
The BB PSC was awarded on 9 October 2012 for 30 years. The BB PSC is located in East Kutai Regency and Bontang City, East Kalimantan Province. The contract covers an area of 411 square kilometers. The exploration period under the PSC is 6 years up to October 2018. No significant works have yet commenced.

Bungamas Joint Evaluation
In 2014, Bungamas Joint Evaluation was awarded by the Indonesian Government to a consortium of Dart Indonesia, Bungamas International Company, PT Bukit Asam (Persero) Tbk and PT Mantra Energy Services for the application of a CBM PSC in the Bungamas area. The Bungamas area is located adjacent to Tanjung Enim PSC and Muralim PSC. The Bungamas Joint Evaluation covers an area of 482 square kilometers. The joint evaluation was completed on 13 February 2015 through co-operation between the consortium and the University of Trisakti representing the Indonesian Government and is currently pending a direct offer for a PSC by the Directorate General of Oil and Gas.

Editing by Reiner Simanjuntak