NuEnergy: Third CBM PSC awarded

(4 April, 2011)--NuEnergy Capital Limited is pleased to report that a third PSC has been signed covering a concession in South Sumatra with an area of 1209km2. The tenement is generally contiguous with the earlier PSC Muara Enim 1 with an area of 652km2 as announced on 3 December 2009. The combined area of Muara Enim 1 and Muara Enim 2 is 1861 km2. Including the Rengat PSC, granted 30 November 2009, the Company now has a total granted area of 4,856km2 across the three PSC?s.

South Sumatra CBM Concession II Project
? Muara Enim 1 (40%) Granted 30 November 2009 (Co-operation with Pertamina) 652km2.
? Muara Enim 2 (30%) Granted 1 April 2011 (Co-operation with Pertamina and Sugico) 1209km2.

The South Sumatra concession, Muara Enim 2 comprises an area of 1209km2 containing 10-40 meter thick, low rank coal seams ranging in depth from 350-1300m with an average reported gas content of 158 scf/ton. The concession appears robust for CBM development containing the thick sections of coal at optimal depths and located close to existing oil and gas infrastructure.

Existing well sites, gas processing facilities and electrical grid, oilfield services and supply contractor facilities are expected to be re-usable. Produced gas can be delivered to market through pipelines passing across the concession area and an export gas trunk line to Java delivering gas to the national market. In addition, two further pipelines delivering gas to Sumatra power, fertilizer plants and petrochemical plants are understood to have spare capacity for CBM gas.

Rengat CBM Project (100%) - Granted 30 November 2009
The tenement has an area of 2,995km2 encompassing coal seams averaging 3-5 meters thick and from 450 to 1 550m in depth. Preliminary studies have projected gas content in the targeted areas to be approximately 118-160 scf/ton. Studies of the concession area have strongly suggested coal properties are most suitable for coal bed methane exploitation and commercial production and rank favorably with comparable global CBM producing basins. Existing oil field and pipeline off take infrastructure is in place. The infrastructure in place consist of inter-provincial roads, exploration wells infrastructure and waste water facilities for the palm industry. There is a gas pipeline across the concession area from northern Sumatra to Java Island Processing Terminal which can be accessed for both pilot project and full commercialisation production gas distribution.

Additional Applications
NuEnergy Capital has priority to two further CBM PSC applications.
? Rengat - Bukit Asam joint study area located in Central Sumatra contiguous with the already graded Rengat PSC for an area of 2012 km2. Bukit Asam is an Indonesian Government owned coal mining company.

? Bunyu - Tarakan joint study area in co-operation with Pertamina located in East Kalimantan for an area of 500km2. Pertamina is an Indonesian Government owned oil and gas company.

In the event these two applications are granted NuEnergy would have in excess of 7,000km2 of high quality coal bed methane acreage. (ends)