NuEnergy Gas (ASX:NGY) Limited, which focuses on unconventional gas in Indonesia, has used its quarterly report for the period ended 30 September 2026 to reaffirm that first gas sales from its Tanjung Enim coal bed methane project remain targeted for the first quarter of calendar 2027. The company also reported that its cash rose to A$2.677m after a placement, while noting that it carries related-party loans repayable on demand.

Early gas at Tanjung Enim

NuEnergy holds a 45 per cent interest in the Tanjung Enim production sharing contract, which covers 249.1 square kilometres and is operated by Dart Energy. The first Plan of Development covers 33 square kilometres. Construction began in August 2026, and the company said early production facilities were about 48 per cent complete, while a compressed natural gas mother station being built for PGN was about 23 per cent complete.

The early gas phase involves four production wells producing about one million standard cubic feet a day. NuEnergy said a Gas Sales and Purchase Agreement with PGN covers 5.59 billion cubic feet of coal bed methane. Tanjung Enim was also designated a National Strategic Project in early September 2026.

Full-scale development and funding partner

The full-scale first Plan of Development targets 24 million standard cubic feet a day, giving total production of 25 million standard cubic feet a day when combined with the early phase. The company said the revised plan uses 13 pairs of multi-seam drainage wells rather than 209 vertical wells.

PT Beijing Energy Linking will finance all of the field development under a Field Services Contract priced at US$88.016m, which is to be recovered from future gas sales.

Other licences

NuEnergy reported extensions to three other production sharing contracts. Exploration at Muralim, where it holds 100 per cent, and Muara Enim, where it holds 40 per cent, was extended to 12 August 2027. Muara Enim II, in which it holds 30 per cent, was extended to 12 February 2028, although a coring programme there is awaiting permits.

Cash, placement and loans

Cash at quarter end was A$2.677m, compared with A$0.553m the previous quarter. Operating outflow was A$0.669m, including development spending of A$0.404m and administration and corporate costs of A$0.241m, while financing inflows were A$2.794m. The company estimated about four quarters of funding at current spending.

In early September 2026 NuEnergy placed 80.2 million ordinary shares at A$0.038 each, raising about A$3.05m. It also reported total drawn related-party loans of A$3.144m, made up of about A$0.839m from PT Indotech Metal Nusantara and A$2.305m from AIC Corporation Sdn Bhd. Both bear interest at 10 per cent, are unsecured and are repayable on demand. The company said they would be repaid first from future capital raisings.

The structure matters for a small company. Development spending in the quarter was only about A$0.4m, and the report recorded no material exploration spending, so the balance sheet is currently supporting corporate costs and modest development outlays rather than a large capital programme. The placement more than covered the quarter's operating outflow. However, the company's own runway estimate shows that further funding, or revenue from first gas, may be needed beyond that period.

Milestones and risks

The immediate milestones are completion of the early production facilities and the CNG mother station, followed by first gas sales, which the company still targets for the first quarter of calendar 2027. Beyond that, full-scale development depends on securing land access, which the company said was still in progress.

NuEnergy identified several risks. Its cash runway is about four quarters, and the related-party loans are callable at any time. First gas depends on finishing construction and obtaining permits, land access for the larger programme is incomplete, and the Muara Enim II coring work awaits environmental and spatial-use approvals.