NuEnergy to relinquish Rengat PSC

By Romel S. Gurky

ASX-listed NuEnergy Gas Limited said it has completed the drilling program for two exploratory wells for the purpose of fulfilling the remaining Firm Commitment for the Rengat PSC located in Central Sumatra.

The company said in a statement issued last week that it was in the process of submitting the work completion report to the Indonesian upstream oil and gas authority SKK Migas to finalize and to confirm the completion of the Firm Commitment.

?As there have not been attractive commercial discoveries based on the drilling programs to date, the company and SKK Migas have amicably agreed for NuEnergy to relinquish the Rengat PSC after confirmation from SKK Migas of the completion of the Firm Commitment,? NuEnergy said.

NuEnergy said the Rengat PSC has a net carrying value of $10.1 million and there will be no operational impact to the company after the relinquishment. ?This is in line with the company?s key strategic focus on its four South Sumatra PSCs (namely Tanjung Enim PSC, Muara Enim PSC, Muara Enim II PSC and Muralim PSC) to develop and operate a large coal bed methane supply, and to better utilize its current resources to bring these South Sumatra PSCs to development.?

With efficient mobilization of its resources, NuEnergy said it is focused on delivering Indonesia?s first unconventional gas supply from the Tanjung Enim PSC, South Sumatra.

Editing by Reiner Simanjuntak