What the A$3.05 Million Placement and Tanjung Enim Early Gas Sales Initiative Mean for NuEnergy Gas

Sonal Goyal

29 September 2026 11:49 PM AEST

What the A$3.05 Million Placement and Tanjung Enim Early Gas Sales Initiative Mean for NuEnergy Gas

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NuEnergy Gas Limited (ASX:NUE) announced on 7 September 2026 that it has received firm commitments to raise approximately A$3.05 million through a Placement of approximately 80.2 million new ordinary shares at A$0.038 per share, managed by Sequoia Corporate Finance and SP Corporate Advisory. The placement was made to sophisticated and professional investors, with participants receiving one free attaching option for every two placement shares (approximately 40.1 million Options at A$0.06 exercise price, expiring September 2028). Proceeds will primarily fund the Tanjung Enim POD1 Early Gas Sales Initiative targeting 1 million standard cubic feet per day, followed by Phase 2 targeting 24 MMSCFD, and advancing three remaining Production Sharing Contract areas toward POD status.

Placement Terms

NuEnergy raised approximately A$3.05 million through a placement of approximately 80.2 million fully paid ordinary shares at A$0.038 per share. The issue price represents a discount of approximately 15.5% to the closing share price of A$0.045 on 2 September 2026 (the day before the announcement). For every 2 placement shares, participants receive 1 free attaching option with an exercise price of A$0.06, expiring 10 September 2028. Approximately 40.1 million options will be issued. The placement was managed by Sequoia Corporate Finance as Lead Manager with assistance from SP Corporate Advisory.

Use of Funds — Tanjung Enim POD1 EGSI

The primary use of funds is the completion of the Tanjung Enim POD1 Early Gas Sales Initiative (EGSI or Phase 1), targeting sustainable production of 1 MMSCFD (million standard cubic feet per day). This will be followed by Phase 2 production of 24 MMSCFD of gas from Tanjung Enim POD1, in conjunction with EPCC partner PT Beijing Energy Linking (PT BEL). Under the executed Field Services Contract between NuEnergy and PT BEL, NuEnergy is responsible for land access and site preparation works, which must be completed before drilling activities can commence. Additional proceeds will advance NuEnergy's three remaining PSC areas — including upgrading resource estimates into reserves and formal POD submissions.

About the Company

NuEnergy Gas Limited is an ASX-listed coal bed methane company with PSC (Production Sharing Contract) interests in South Sumatra, Indonesia. The company's primary asset is the Tanjung Enim PSC (POD1 approved), which targets coal seam gas in one of Indonesia's most significant coal districts. NuEnergy's strategy is to commercialise its Indonesian CBM resources through staged gas sales to domestic Indonesian markets, leveraging the country's growing domestic gas demand.

Risks

The A$3.05 million placement is modest relative to the Capital required to complete the 24 MMSCFD Phase 2 development — additional significant funding will be required to execute the full programme.

NuEnergy is responsible for land access and site preparation works before PT BEL can commence drilling. In Indonesia, land access negotiations can be complex and time-consuming.

The Phase 1 EGSI target of 1 MMSCFD is a significant step before Phase 2's 24 MMSCFD — the company must demonstrate commercial gas flow at Phase 1 scale before Phase 2 Economics can be confirmed.

PT BEL (PT Beijing Energy Linking) as the EPCC partner introduces partner execution risk. Any issues with PT BEL's capacity, financing, or technical execution could delay the programme.

Indonesia's regulatory environment for PSC coal bed methane development involves multiple agencies and can be complex, particularly for foreign-operated extraction in South Sumatra.

What to Watch Ahead

Completion of land access and site preparation works — the prerequisite before PT BEL can commence drilling activities at Tanjung Enim POD1.

Commencement of drilling under the Field Services Contract with PT BEL, signalling transition from preparation to active development.

First gas sales from the EGSI Phase 1, achieving the 1 MMSCFD milestone — the first commercial Revenue event for NuEnergy.

Progress on the three remaining PSC areas' resource estimate upgrades and formal POD submissions, which would expand the company's commercial pipeline.

Additional financing announcements for Phase 2 — the path from 1 MMSCFD (Phase 1) to 24 MMSCFD (Phase 2) requires substantially more capital than the A$3.05 million currently raised.

FAQs

Q: What is a Production Sharing Contract and what does 'POD' mean?

A: A Production Sharing Contract (PSC) is an agreement between Indonesia's government (through SKK Migas, the upstream oil and gas regulator) and a foreign company to explore and produce hydrocarbons. Under a PSC, the contractor funds exploration and development and recovers costs from production before splitting remaining revenues with the government. A Plan of Development (POD) is the formal development plan submitted to and approved by SKK Migas for a specific field — it is required before commercial production can begin. NuEnergy has obtained POD1 approval for Tanjung Enim and is working to progress the remaining three PSC areas to POD status.

Q: What is MMSCFD and why is 24 MMSCFD significant?

A: MMSCFD stands for Million Standard Cubic Feet per Day, a standard gas volume measurement. The Phase 1 EGSI target of 1 MMSCFD is a small initial commercial production demonstration. Phase 2's target of 24 MMSCFD represents a scale-up to approximately 24 times Phase 1 volume, which would place Tanjung Enim into the range of a commercially meaningful gas production operation capable of supplying significant volumes to Indonesian domestic gas markets. At 24 MMSCFD and Indonesian gas prices, the revenue potential becomes materially significant relative to NuEnergy's current market capitalisation.

Q: What role does PT Beijing Energy Linking (PT BEL) play and what is the Field Services Contract?

A: PT BEL is a Chinese energy company with technical and operational capabilities in CBM development in Indonesia. The Field Services Contract executed between NuEnergy and PT BEL means PT BEL will act as the Engineering, Procurement, Construction and Commissioning (EPCC) contractor for the Tanjung Enim development — essentially building and commissioning the production infrastructure under contract to NuEnergy. NuEnergy retains ownership and operatorship rights under the PSC but leverages PT BEL's execution capability. NuEnergy's responsibility is land access and site preparation — PT BEL then commences drilling and facilities construction.

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