NuEnergy Plans to Farm Out Rengat CBM PSC

NuEnergy Gas Ltd is looking to farm-out Rengat CBM production sharing contract (PSC) in Indonesia in the current year.

"Farming-out Rengat PSC to reduce going forward capex by $3-5 million and recoup sunk PSC costs," the company said in its investor update.

NuEnergy controls 100% shares in Rengat CBM PSC, 40% in Muara Enim PSC, and 30% in Muara Enim 2 PSC.  The company also plans to secure one or two additional shale gas, shale oil and coal bed methane concessions in East Africa.

NuEnergy recently agreed to modify a joint venture agreement signed in November with Tancoal Energy, a subsidiary of Intra Energy Corp. The Unconventional Gas Joint Venture Variation Agreement (JVVA) captures all unconventional gas in Tanzania, which includes coal bed methane and shale gas.