KUALA LUMPUR (July 21): Globaltec Formation Bhd’s subsidiary NuEnergy Gas Ltd has finalised the location of all the proposed well sites and is in the final stage of land acquisition for the Tanjung Enim production sharing contract (PSC), South Sumatra, Indonesia.
NuEnergy, listed on the Australian Securities Exchange, said representatives from the company and the Indonesian special task force for upstream oil and gas business activities, SKK Migas, have conducted a site visit and joined in the socialisation process with the local community on June 6.
“NuEnergy has initiated the procurement process of long lead time items to the vendors, and also appointed some of the service companies necessary for the early gas sales programme,” the company wrote in its June 2023 quarterly report released on Thursday (July 20).
NuEnergy is a gas and ancillary power generation company whose primary activity is unconventional gas exploration and development in Indonesia.
On Feb 10, Dart Energy (Tanjung Enim) Pte Ltd — NuEnergy’s wholly owned subsidiary — inked a heads of agreement (HOA) with PT Laras Ngarso Gede (Laras Energy), a downstream natural gas and its derivative products provider, for the supply and sale of coal bed methane in the Tanjung Enim PSC.
The HOA is effective until the date the gas sale and purchase agreement is executed, or until Aug 9, 2023.
In the quarterly report, NuEnergy also said it has completed and submitted the necessary environmental impact studies’ application as required and is now pending approval from the Ministry of Environment and Forestry of Indonesia.
“All the required documentation, including the performance guarantee from Laras Energy, has already been submitted and is now pending SKK Migas’ recommendation of approval for gas allocation and price to the Ministry of Energy and Mineral Resources (MEMR). Concurrently NuEnergy is working on the draft gas sales agreement with Laras Energy,” it added.
Aside from that, NuEnergy has obtained approval for another additional exploration time at the Muralim gas field.
“Due to the high-water production causing a delay in the completion of the dewatering process, NuEnergy had discussions with SKK Migas to extend the exploration period beyond the deadline of July 18. SKK Migas has agreed and has made a recommendation to the MEMR for a 19 months' extension of the exploration period,” NuEnergy said.
The company said it plans to improve the dewatering rate by activating an existing well, MU-006.
Last August, NuEnergy said the additional time to July 18 was to be utilised to complete dewatering activities on the MU-005 (Twin) well to determine gas productivity for future development.
For its quarterly cash flow report for the quarter ended June 30, 2023, NuEnergy said it has cash and cash equivalents totalling A$1.44 million (RM4.45 million), while total financing facilities stood at A$3.14 million.
During Friday’s afternoon break, Globaltec settled 3.16% or 1.5 sen higher at 49 sen, valuing the group at RM130.52 million. At 49 sen, the counter was trading at its highest since May 25. Trading of Globaltec shares was halted for an hour from 9am.
On the other hand, NuEnergy was unchanged at 2.8 cents at the time of writing, bringing it a market capitalisation of A$41.5 million.