NuEnergy to raise $6m via rights issue to fund S. Sumatra PSC
Monday, March 4 2013 - 03:01 AM WIB
ASX-listed NuEnergy Gas Limited said that its planned rights issue program to raise A$6 million in proceeds has been fully underwritten by existing shareholders RBS Morgans Ltd, and Republic Investment Management Pte Ltd which is a Singapore based investment group.
The underwriting parties will be paid underwriting fees of 4 percent of the proceeds from the Rights Issue, the company said in a statement received Monday.
NuEnergy said that the proceeds from the rights issue will provide funding to further advance gas production at the Muara Enim production sharing contract (PSC) in South Sumatra, Indonesia, targeting gas sales by end 2013 and to continue exploration in Eastern Africa.
?The Rights Issue provides the opportunity for all shareholders to take part in the funding of our expanding pilot program in South Sumatra, where the company expects to achieve gas sales by the end of this year,? said NuEnergy?s Chairman, Graeme Robertson in the statement. (*)
The statement further provides the following details:
In the past month we have delivered a number of key milestones with a Memorandum of Understanding signed at a $10 per mmbtu gas sales price and our maiden Contingent Gas resource pertaining to this. The Company is at an exciting stage as we are now approaching the commercialization of coal bed methane gas in Indonesia.
The funding will also help with commencement of shale gas exploration in Malawi where promising coal shale formations exist in and around our Exclusive Prospecting Licence.
Editing by Reiner Simanjuntak