Highlights

  • The update comes in the company's quarterly report for the period to 30 September 2026.
  • NuEnergy holds 45% of the Tanjung Enim PSC, which is operated by Dart Energy (Tanjung Enim) Pte Ltd.
  • A compressed natural gas mother station is being built by offtake partner PT PGN and was about 23% complete.
  • The company states that first sales depend on completing both the production facilities and the mother station, together with permits.

NuEnergy Gas (ASX:NGY) has reported that construction began in August 2026 at its Tanjung Enim production sharing contract (PSC) in Indonesia, and that it is targeting first gas sales in the first quarter of calendar 2027. The update comes in the company's quarterly report for the period to 30 September 2026.

The Tanjung Enim Project

NuEnergy holds 45% of the Tanjung Enim PSC, which is operated by Dart Energy (Tanjung Enim) Pte Ltd. The company's first plan of development (POD 1) covers 33 km² of the 249.1 km² contract area and targets 25 MMSCFD in total, comprising 1 MMSCFD from an early gas sales initiative and 24 MMSCFD from full-scale development. NuEnergy says the Indonesian government designated Tanjung Enim a National Strategic Project in early September, and work on land access for the full-scale development has begun.

For the early gas phase, NuEnergy's Early Production Facilities were about 48% complete on average at 30 September, with civil works nearly finished apart from drainage, piping well advanced and statutory inspections under way. A compressed natural gas mother station is being built by offtake partner PT PGN and was about 23% complete. PGN has signed a gas sales and purchase agreement for 5.59 billion cubic feet of coal bed methane from the early gas wells. Four production wells are being dewatered, flared and optimised.

The company states that first sales depend on completing both the production facilities and the mother station, together with permits. Those conditions are not yet met, so the Q1 2027 timing remains a target rather than a confirmed date.

Full-Scale Development

An updated subsurface study is complete and a field services contract is in place. The concept has changed to multi-seam drainage intercept drilling using 13 well pairs, replacing a design of 209 vertical wells. PT Beijing Energy Linking will fund all of the development at a contract price of US$88.016 million, to be recovered from future gas sales. NuEnergy has not reported any revenue from the project to date.

Other Pscs

NuEnergy's other interests were unchanged during the quarter. The Muralim PSC (100%) and Muara Enim PSC (40%) have exploration periods extended to 12 August 2027, with consultants preparing plans of development expected before expiry. At Muara Enim II (30%), the exploration period runs to 12 February 2028 and a coring program awaits environmental permit review and spatial-use approval.

Funding And Cash

In early September NuEnergy issued 80.2 million shares at $0.038, described as raising about $3.05 million. The cash flow statement shows equity proceeds of $2.794 million, and the report does not explain the difference. Opening cash of $553,000 rose to $2.677 million at quarter end after operating outflows of $669,000, of which $404,000 was development payments and $241,000 administration and corporate costs. The company estimates 4.0 quarters of funding at its current rate of spending.

NuEnergy also has fully drawn loan facilities totalling $3.144 million from two subsidiaries of its ultimate parent, GFB: PT Indotech Metal Nusantara and AIC Corporation Sdn Bhd. Both are unsecured, bear 10% annual interest paid quarterly and are repayable on demand. The business states they will be repaid first from future capital raisings, or on demand once sufficient funds are received. Because the loans are repayable on demand, they are a liquidity consideration alongside the project's capital needs.

What To Watch

Confirmed milestones in the report are completion of the production facilities and mother station, the permits needed for first sales, land access for POD 1, and the plans of development for the Muralim and Muara Enim PSCs before their exploration periods expire. The report refers to the early gas initiative under two different acronyms, which readers should note when comparing documents.