NUENERGY CAPITAL LIMITED - ASX: NGY

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Description

NuEnergy Capital Limited is an energy company listed on the Australian Securities Exchange ("NGY") with offices in Perth, Australia and in Jakarta, Indonesia. It is also listed on the Frankfurt market ("NUB").

The Company aims to become a meaningful Coal Bed Methane (“CBM”) producer in Indonesia. It is currently building a portfolio of targeted acreage in Indonesia that has excellent potential for CBM production.

This acreage was specifically targeted commencing around three years ago. The area has been mapped for its coal bed potential based on previously drilled oil/gas wells and seismic data. The acreage will firstly be subject to a pilot hole exploration/appraisal drilling and pressurized coring programme to assess the reservoir characteristics of the coal beds and hence their gas production attributes.

Should this pilot programme be successful, the company aspires to becoming one of the top tier producers of coal bed methane in Indonesia within the next 5 years. It is anticipated that any gas discovered will quickly find a market given the undersupply of domestic gas throughout Indonesia.

The company will continue to seek out and acquire other CBM acreage and possibly conventional gas opportunities in Indonesia and in the SE Asian region with the goal of establishing a production base as soon as possible.

South Sumatra CBM Concession II Project (In joint venture with Pertamina) – NuEnergy as Operator, 45% Revenue share

This PSC was awarded in November 2009. The NuEnergy acreage is surrounded by acreage held by Arrow Energy and BP in this highly prospective coal basin. The PSC comprises an area of 650 square kilometres containing 10-40 meter thick, low rank coal seams ranging in depth from 350 -1300m with an average reported gas content of 158 scf/ton. The Concession appears robust for CBM development containing the thick sections of coal of an appropriate rank at optimal depths and located close to existing oil and gas infrastructure. Existing Pertamina well sites, gas processing facilities and electrical grid, oilfield services and supply contractor facilities are proximate and expected to be usable for CBM production. Produced gas can be delivered to market through pipelines passing across the concession area and an export gas trunk line to Java delivering gas to the national market. In addition, two further pipelines delivering gas to Sumatra power, fertilizer plants and petrochemical plants are understood to have spare capacity for CBM gas.

Rengat CBM Project (100% IndonCBM) – NuEnergy as Operator - 45% Revenue share

This PSC was also awarded on 9 November 2009. Leading up to this award, the company completed a joint study with MiGas, an Indonesian Government owned energy regulator entity. The results of this study have defined an area of 2,995 square kilometres encompassing coal seams averaging 3-5 meters thick and from 450 to 1550m in depth in the Central Sumatra, known as the Rengat area. Preliminary studies by IndonCBM of the concession area have suggested that coal properties are suitable for coal bed methane exploitation and commercial production and rank favourably with comparable global CBM producing basins. There is considerable existing oil field and gas pipeline off-take infrastructure in the area and this should facilitate any future developments.

Tarakan Basin Project (Joint study area application in Cooperation with Pertamina) - NuEnergy preposed as operator, 45% revenue share

IndonCBM has lodged an application for a joint study and evaluation area covering Bunyu island and three smaller areas on Tarakan island in the Tarakan basin of Kalimantan. The Tarakan Basin is amongst the oldest oil producing centres in Indonesia with a proposed PSC area of 500 square kilometres. A preliminary study indicates 4-5 major continuous coal seams averaging 3-5 meters thick. Existing off-take infrastructure comprising oilfield and gas pipelines is also in place in this area. There are numerous oil and gas fields in this application area along with proximate reticulation infrastructure. The Pertamina methanol plant is a likely customer for any CBM produced from this area.

Mine For

coal, coal bed methane

Location of operation(s)

Indonesia

Address

311-313 Hay Street
SUBIACO, WA, AUSTRALIA

Phone

+61 8 9381 5819

Email

Website

http://www.nuenergycorp.net

Last Updated

3/3/2011