NuEnergy Gas Limited (ASX:NGY) announced that it has completed the drilling program for two exploratory wells for the purpose of fulfilling the remaining Firm Commitment for the Rengat Production Sharing Contract.
The Company is now in the process of submitting the work completion report to the Indonesian Special Task Force for Upstream Oil and Gas Business Activities (commonly referred to as SKK Migas) to finalise and to confirm the completion of the Firm Commitment.
As there have not been attractive commercial discoveries based on the drilling programs to date, the Company and SKK Migas have amicably agreed for NuEnergy to relinquish the Rengat PSC after confirmation from SKK Migas of the completion of the Firm Commitment. The Rengat PSC has a net carrying value of $10.1 million and there will be no operational impact to the Company after the relinquishment. This is in line with the Company’s key strategic focus on its four (4) South Sumatra PSCs (namely Tanjung Enim PSC, Muara Enim PSC, Muara Enim II PSC and Muralim PSC) to develop and operate a large coal bed methane supply, and to better utilise its current resources to bring these South Sumatra PSCs to development.
With efficient mobilisation of its resources, NuEnergy is focussed on delivering Indonesia’s first unconventional gas supply from the Tanjung Enim PSC, South Sumatra.
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