Extracted from NGY's latest Quarterly Report ended June 2023...

Extracted from NGY's latest Quarterly Report ended June 2023 which was released on 21 July 2023 - Update on Tanjung Enim POD1
NuEnergy continued to focus on executing its POD 1 implementation with the objective to achieve early gas sales. In relation hereto, NuEnergy has signed a Heads of Agreement (“HOA”) on 10 February 2023 with PT. Laras Ngarso Gede (“Laras Energy”) for the supply and sale commitment by NuEnergy and the purchase commitment by Laras Energy, of coal bed methane (“CBM”) produced from Tanjung Enim’s POD 1.

Subsequently, NuEnergy submitted a letter of request for gas allocation and price, to the Indonesian Special Task Force for Upstream Oil and Gas Business Activities (“SKK Migas”) on 14 February 2023. All the required documentation, including the performance guarantee from Laras Energy has already been submitted and is now pending SKK Migas’s 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.

In addition, NuEnergy has completed and submitted the necessary environmental impact studies’ application as required under the POD 1 and is now pending approval from the Ministry of Environment and Forestry of Indonesia.

NuEnergy has also finalised the location of all the proposed well sites and is in the final stage of land acquisition. NuEnergy and SKK Migas representatives have already conducted a site visit and joined in the socialization process with the local community on 6 June 2023. 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 program.