NuEnergy Gas (ASX: NGY) has taken a significant step towards commercialising its Tanjung Enim coal bed methane project in Indonesia after signing a fully funded US$88 million field service contract with PT Beijing Energy Linking (PT BEL). The agreement shifts the upfront development funding burden away from NuEnergy, with PT BEL to recover its costs from future gas sales, reducing capital requirements for shareholders while advancing the project towards production.
The contract covers drilling, construction, testing and completion of wells required to achieve a sustainable production rate of 24 million standard cubic feet of gas per day. Management said the agreement is the first major implementation milestone under its strategic partnership with PT BEL and positions NuEnergy to transition from its early gas sales phase into full-scale production, subject to final engineering work, regulatory approvals and gas sales agreements.
Click
here to view the full announcement.
