As part of its recapitalisation process, NuEnergy Gas has signed an investment agreement with New Century Energy Resources Ltd (NCE), a company with extensive experience in the coalbed methane (CBM) industry.
NuEnergy is looking to fund the development of Indonesian Production Sharing Contracts (PSCs).
In the CBM industry, NCE has proven experience, including subsurface, well drilling, completion and production techniques that can significantly enhance the productivity of CBM wells, according to NuEnergy.
NCE will pay a deposit of US$ 200 000 to obtain exclusivity and commence due diligence for 30 days and subject to successful completion of the due diligence will subscribe for circa 83 million NuEnergy shares at US$ 0.03 to raise US$ 2.5 million.
As part of the recapitalisation of NuEnergy, the company intends to solely focus on its three Indonesian PSCs. NuEnergy’s core PSCs in South Sumatra will be the primary focus with the company aiming to drill further pilot wells at its Muara Enim PSC and commence drilling at the Muara Enim II PSC, including a focus on the western area.
The secondary focus for NuEnergy in Indonesia will be completing a farm out transaction for the Rengat PSC, focusing on drilling wells that intersect the identified 15 m coal seam revealed after extensive geological and geophysical work completed in 2013.
Edited from various sources by Sam Dodson
Read the article online at: https://www.worldcoal.com/cbm/21072014/nuenergy-gas-looks-to-recapitalise-78/