Extracted from NGY's 2023 Annual Report on Muara Enim II POD which was released today -
The Muara Enim II PSC expired on 31 March 2019. Pending the extension of the PSC, the Board took the approach to impair the full carrying value of Exploration and Evaluation expenditure in the financial year ended 30 June 2019 of $6,231,964 and to record a provision for potential penalty of $2,097,169 (USD1,500,000) in relation to the unfulfilled firm commitment under the PSC. Nevertheless, NuEnergy has on 9 February 2023, obtained the letter of approval from MEMR dated 7 February 2023, for an additional exploration period of 24 months until 29 January 2025 to complete the exploration firm commitments.The additional exploration period will enable NuEnergy to gather gas production data in order to proceed with reserves certification to fulfill a POD submission requirement. This will enable the Muara Enim II PSC to migrate from exploration to development status.
NGY Price at posting:
3.7¢ Sentiment: Buy Disclosure: Held
