Oz NuEnergy Ropes in Investor

Australia-listed coalbed methane (CBM) explorer NuEnergy Gas has signed a binding investment agreement with Malaysia’s Saujana E&P to fund the development for its Indonesian CBM production sharing contract (PSC) programmes and the Tanjung Enim PSC plan of development, it said April 2.

Saujana E&P has agreed to take up a strategic investment in NuEnergy via a share placement of 1.5bn new NuEnergy shares equivalent to a controlling 51% of the enlarged share capital of NuEnergy with a total subscription value of $38mn.

The Malaysian company will deposit $7mn within 14 business days from the execution of the agreement.

“The signing of this binding Investment Agreement is a major step forward for NuEnergy. Saujana E&P will provide the strong capabilities to build on NuEnergy’s existing expertise in the Coal Bed Methane industry. The proceeds from this raise will strengthen the operational and financial position of NuEnergy,” NuENergy’s deputy vice president Kee Yong Wah said.

Malaysia-listed Globaltec Formation is the major shareholder in NuEnergy. Upon completion of the proposed NuEnergy placement, Globaltec's direct and effective interest in NuEnergy will be diluted from 64.7% and 51.7% to 31.7% and 25.4% respectively, it said in a separate statement. 

In Indonesia, NuENergy holds six onshore PSCs, across South Sumatra, Central Sumatra and East Kalimantan.