Gulf Oil and Gas accountACCOUNT

Nuenergy Will Invest and Farm-In to its Rengat PSC

Source: 2/12/2014, Location: Asia

Share |
NuEnergy has signed a Letter of Intent (LOI) with a strategic Asian investor. Under the terms of the proposed Farm-In transaction the Farm-inParty will:
Invest in NuEnergy via a 10% share placement at a price equal to the higher of a 15% discount to the 14 day Volume Weighted Average Price (VWAP) or 4 cents per share, raising a minimum of AU$1.3 million; and
Pay NuEnergy US$2.7 million in cash plus provide a full carry on 3 core and 3 pilot production wells, with the full value of the carry program being estimated at US$10-12 million,

in return for being assigned a 49.9% participating interest in Rengat PSC located in central Sumatra, Indonesia. The proposed Farm-in Party has extensive experience in the Coal Bed Methane (CBM) service industry and with drilling and completion techniques that can significantly enhance the productivity of the CBM wells.

Other key terms of the agreement include the following rights for the Farm-In party:
- a first right of refusal to subscribe for a further 5% of the issued capital of NuEnergy upon the company achieving a minimum specified 2C resource upgrade; and
- the right to nominate one director to the Board of NuEnergy Gas Limited.

Key deliverables and time frames for completion of the agreement, as set out in the LOI, are as follows:
- Due diligence completion 15 March 2014
- Share placement agreement Finalised by 31 March 2014
- Farm-in agreement Subject to conditions precedent, finalised by 31 March 2014
- Conditions Precedent Satisfaction 31 July 2014 (subject to necessary regulatory approvals)
The total cash contribution under the proposed transaction of $4 million (minimum) will fund the drilling of additional pilot wells in NuEnergy’s South Sumatran PSCs to assist the ongoing work program to achieve commercial production.

Acquisitions and Divestitures News in Indonesia >>

Nigeria >>  11/12/2018 - Eland Oil & Gas PLC, an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, has announced, through...
United Arab Emirates >>  11/11/2018 - On behalf of the Abu Dhabi government, the Abu Dhabi National Oil Company (ADNOC) has signed an agreement with French oil and gas major Total, grantin...

Canada >>  11/8/2018 - the Canada Newfoundland and Labrador Offshore Petroleum Board announced that BHP has been successful in its bids to acquire a 100% participating inter...
Canada >>  11/7/2018 - Equinor and its partners were the successful bidders for new exploration parcels in the prolific Jeanne d’Arc basin, offshore Newfoundland. ...

Namibia >>  11/7/2018 - Tower Resources plc, the AIM listed oil and gas company with its focus on Africa, is pleased to announce that Tower Resources (Namibia) Limited, a who...
United States >>  11/7/2018 - QEP Resources, Inc. (QEP) announced that its wholly owned subsidiary, QEP Energy Company, entered into a definitive agreement to sell its assets in th...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Indonesia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |

Oil & Gas Projects in Indonesia >>

More News


Oil & Gas Companies in Indonesia >>

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.