NuEnergy to raise $2.5m via rights issue to fund Muara Enim gas production

By Romel S. Gurky

ASX-listed NuEnergy Gas Limited (NGY) announced Thursday that a partially underwritten non-renounceable rights issue of one new share for every four shares held on the record date of 6 December 2013 will be made to eligible shareholders of NuEnergy at the issue price of $0.035 (3.5c) per share, to raise up to approximately A$2.5 million before transaction costs.

The rights issue will be partially underwritten by Farjoy Pty Limited (an existing shareholder of NGY). The underwriter will be paid an underwriting fee of 4 percent of the amount underwritten.

Funds raised by the rights Issue will predominantly be used to continue expansion of NuEnergy?s pilot gas development program at Muara Enim PSC, in South Sumatra.

Editing by Reiner Simanjuntak