Extracted from NGY’s latest Quarterly Report ended March 2024
Gas Allocation Process is ongoing for the implementation of TanjungEnim Plan of Development (“POD 1”) and early gas sales
Duringthe quarter, NuEnergy continued the effort to secure gas price and gas volumeallocation from the Ministry of Energy and Mineral Resources (“MEMR”).
NuEnergywill commence with a modest phase of initial gas sales, estimated at onemillion standard cubic feet per day (“mmscfd”) of coal bed methane (“CBM”)which is part of the 25 mmscfd of gas production approved under the TanjungEnim POD 1.
Asannounced on 10 February 2023, NuEnergy signed a Heads of Agreement with PTLaras Ngarso Gede (“Laras Energy”) for the supply and sale commitment byNuEnergy and the purchase commitment by Laras Energy, of CBM produced fromTanjung Enim’s POD 1. As announced on 2 April 2024, the HOA has been mutuallyextended to 30 June 2024.
NuEnergycontinues to expand the business development program to other end users for itsfuture CBM production in South Sumatra. NuEnergy has also received several keeninterests for the purchase of CBM from other users and premised on this,NuEnergy will endeavour to progress towards the signing of HOA with selectedend user(s), an announcement will be made after the signing.
NuEnergyhas in the previous quarters identified locations for four early gas saleswells, a production facility and the subsequent flow lines for the earlygeneration of gas at Tanjung Enim contract areas, as detailed below. NuEnergywill complete the land acquisition process and carry out land clearing anddrilling site preparation activities on these identified locations in duecourse.
