NuEnergy Gas Ltd. has received firm commitments from investors to raise approximately AU$3.05 million via a share placement to fast-track its coal bed methane (CBM) commercialisation strategy in Indonesia.
The capital raising comprises 80.2 million new fully paid ordinary shares issued at 3.8 cents per share, representing a 15.5 per cent discount to the company’s closing price prior to the announcement.
Participating investors will also receive one free attaching option for every two placement shares subscribed for, exercisable at 6 cents per option with a two-year expiry ending in September 2028.
The newly raised funds will primarily support early gas production at NuEnergy’s flagship Tanjung Enim Plan of Development 1 (POD1) in South Sumatra.
Capital will be allocated to complete the Early Gas Sales Initiative (Phase 1), which targets an initial production rate of one million standard cubic feet per day (MMSCFD).
Following Phase 1, the company plans to scale up to Phase 2 operations to achieve 24 MMSCFD in tandem with engineering partner PT Beijing Energy Linking.
Under the existing field services contract, NuEnergy is tasked with funding and completing site preparation and land access works before drilling activities commence.
Additionally, proceeds will assist NuEnergy in progressing its three remaining production sharing contracts (PSCs) across South Sumatra towards formal POD submissions and upgrading resource estimates to reserves.
The placement provides NuEnergy with additional funding flexibility as it progresses the development of its Indonesian CBM portfolio.
NuEnergy remains focused on creating an integrated CBM production hub across its South Sumatra acreage to deliver sustainable domestic energy to Indonesia’s expanding industrial market while establishing long-term shareholder value.
The shares will be settled on September 10, with the allotment of the placement on September 11.
