Tanjung Enim POD1, page-36

Extracted from NGY’s latest Quarterly Report ended September 2023 onTanjung Enim POD

Throughits subsidiary DETE, NuEnergy secured the environmental permit dated 26September 2023 from the Ministry of Environment and Forestry for the TanjungEnim POD 1. With the approval, NuEnergy is now in a position to work towardscompletion of the final preparations for early gas production for the projectunder the development phase of the commercialisation pathway for the TanjungEnim asset.

NuEnergyis currently awaiting the approval of gas price and gas volume allocation, akey requirement before commencing gas sales, from the Ministry of Energy andMineral Resources (“MEMR”). NuEnergy will commence with a modest initial phaseof gas sales, estimated at one million standard cubic feet per day (“mmscfd”)of Coal Bed Methane (“CBM”) to its downstream offtake partner PT. Laras NgarsoGede ("Laras Energy”). This offtake will underpin the initial phase of theproject, progressing production to 25 mmscfd of gas as approved under theTanjung Enim POD 1.

Asannounced on 10 February 2023, NuEnergy signed a Heads of Agreement with LarasEnergy, which was later extended on 10 August 2023, for the supply and salecommitment by NuEnergy and the purchase commitment by Laras Energy, of CBMproduced from Tanjung Enim’s POD 1. NuEnergy is currently working on a draftGas Sales Agreement with Laras Energy, which will include more detailed agreedterms.

NuEnergyhas now identified locations for four early gas wells, a production facilityand the subsequent flow lines for the early generation of gas at Tanjung Enim,as detailed in the figure below.

On23 May 2023 the Directorate General of Oil & Gas from MEMR announced a newsimplified gross revenue split proposal of 95% Contractor 5% Government for theunconventional gas industry, to enhance project profitability, flexibility andtechnological innovation for unconventional gas industry players. Furtherdetail on this proposed split is expected to be provided before the end of CY23and will be critical for the Indonesian CBM industry.