NGY Announcement on 28 June 202428 June 2024 HEADS OF AGREEMENT...

NGY Announcement on 28 June 2024

28 June 2024

HEADS OF AGREEMENT SIGNED FOR GAS SALES WITH PTPERUSAHAAN GAS NEGARA TBK

NuEnergyGas Limited (“NuEnergy” ASX: NGY). NuEnergy is pleased to announce that itssubsidiary, Dart Energy (Tanjung Enim) Pte Ltd (“Dart TE”), signed a Heads ofAgreement (“HOA”) with PT Perusahaan Gas Negara Tbk (“PGN”) on 27 June 2024 forthe sale and purchase of coal bed methane. Dart TE and PGN are hereinaftercollectively referred to as the “Parties”.

PGN(PGAS:IJ), listed on the Indonesia Stock Exchange, is a leading natural gasdistribution and transportation player in Indonesia with total revenue ofUSD3.65 billion for the financial year ended 31 December 2023. PGN continues tostrengthen its position in the market by gradually transforming into anintegrated energy solution company, encouraging the use of natural gas. PGN isengaged in upstream oil and gas, midstream and downstream fields across theIndonesian peninsula. PGN owns and operates natural gas pipelines of more than12,000 km in total length. PGN’s upstream portfolio consists of 10 oil and gasblocks across Indonesia and 1 shale gas project in Houston, United States ofAmerica. PGN has 2 Floating Storage Regasification Units (“FSRU”) in Lampung& West Java, Indonesia and a land-based regasification facility in Arun,Indonesia. PGN, and through its downstream entities, serves more than 3,100industrial and commercial customers. PGN has been a subsidiary of PT Pertamina(Persero) since 28 December 2018 as part of the Government of Indonesia’s Oil& Gas Holding initiatives.

TheHOA’s salient terms and conditions shall eventually progress and beincorporated into a comprehensive Gas Sale and Purchase Agreement (“GSPA”),covering the supply and sale commitment by Dart TE and the purchase commitmentby PGN, of coal bed methane (“CBM”) produced from Dart TE’s Plan of Development(“POD”) 1, in the Tanjung Enim Production Sharing Contract (“PSC”), located inSouth Sumatra Indonesia. The HOA shall be effective from 27 June 2024 up to thedate the GSPA is executed or expiration of the 12 (twelve) month periodcommencing from the effective date and can be extended based on the writtenagreement of the parties to the HOA.

Underthe HOA, Dart TE targets to commence the sale and delivery of CBM to PGNestimated no later than 1 (one) year after the GSPA is signed or a datemutually agreed by the Parties. The GSPA, which shall be for a period of 15years, can be extended mutually through written agreement.

Thesupply of the CBM/natural gas will address not only the energy needs but willalso help the industry in the vicinity to gradually migrate towards utilisingclean energy in their operations/business and this, in turn, will enableNuEnergy, PGN, Indonesia, and the world to take a step closer towards a lowercarbon future. This gas sale commencing at 1 MMSCFD represents the initial andgradual progress of gas production and this initial gas production is part ofDart TE’s development phase that will increase to a total peak gas productionof 25 MMSCFD as approved under the Tanjung Enim POD-1, by the Ministry ofEnergy and Mineral Resources Indonesia on 17 June 2021.

TheTanjung Enim POD I covers the development in two target areas, in the north andsouth of the contract area covering ~33km2 (or 13% of the total acreage of theTanjung Enim PSC) where the Indonesia Research and Development Center for Oiland Gas Technology has confirmed and certified reserves totalling ~164.89 Bscfin these areas.