Muralim PSC Update, page-2

Extracted from NGY's Half Year ended December 2022 which was released yesterday -

In financial year 2021, NuEnergy has successfully completed permeability tests and drilled to the targeted depth of 724 meters in vertical depth, at the MU-005 (Twin) well. Four coal seam formations were confirmed between the depth of 547 meters to 669 meters. NuEnergy then proceeded with dewatering activities but the dewatering process was temporarily suspended during the quarter ended 30 September 2021, pending the necessary permit being issued by Ministry of Environment of Indonesia. Based on the latest revised environmental regulation issued in September 2021, NuEnergy obtained the environmental permit in January 2022. With the approval, NuEnergy was able to continue the dewatering process to determine the gas productivity for future development, to be followed by the submission of an Exploration Status Decision proposal and a POD proposal. The results from the gas production will be submitted to SKK Migas for their further recommendation for NuENergy to submit the future POD proposal for this PSC. However, due to COVID-19 lockdowns imposed in the supplier’s country, NuEnergy has only in end June 2022 received the necessary equipment to recommence the dewatering process. On 1 August 2022, MEMR via SKK Migas has approved an additional exploration period until 18 July 2023. NuEnergy is currently continuing the dewatering process. However, the water production from the dewatering, is higher than earlier expected and this has slowed the progress to complete the dewatering process. To date, there are a total of six wells that have
been previously drilled in the Muralim PSC.