NuEnergy Launches $4.62M Offer to Power Indonesian Gas Sales Growth
NuEnergy Gas Limited has announced a $4.62 million entitlement offer, primarily to fund early gas sales and development of its Indonesian coal bed methane assets. The offer is partially underwritten by a major shareholder and supports key milestones in the company’s transition to commercial production.
- Non-renounceable pro-rata entitlement offer to raise up to $4.62 million
- Partially underwritten by Global Energy Resources for $3.21 million
- Funds targeted at early gas sales initiative and development of four Indonesian PSCs
- Early gas sales underway with infrastructure installed and gas flaring commenced
- Key agreements secured with Indonesia’s state-linked gas distributor PT Perusahaan Gas Negara
Entitlement Offer to Fuel Growth
NuEnergy Gas Limited (ASX, NGY) has unveiled a partially underwritten non-renounceable pro-rata entitlement offer aiming to raise up to $4.62 million at an issue price of 2.5 cents per share. The offer, opening on 12 November and closing on 21 November 2025, invites eligible shareholders to subscribe for two new shares for every nineteen held. Major shareholder Global Energy Resources Sdn Bhd has committed to underwriting $3.21 million of the raise, underscoring confidence in NuEnergy’s strategic direction.
Backing Early Gas Sales in Indonesia
The capital raised will primarily support NuEnergy’s early gas sales initiative from its Tanjung Enim Production Sharing Contract (PSC) in South Sumatra, Indonesia. This project represents a pioneering coal bed methane (CBM) development in the country, with government approvals secured for a phased commercial rollout targeting 25 million standard cubic feet per day (MMSCFD) of gas production. Early gas sales have already commenced at a modest 1 MMSCFD, marking a critical step towards full-scale production.
NuEnergy has installed progressive cavity pump systems and surface facilities at three of the four wells drilled, enabling real-time monitoring and optimization of gas extraction. Gas flaring operations have begun to establish flow rates and well performance, signaling tangible progress in operational execution.
Strategic Partnerships and Market Access
Integral to the project’s commercial prospects is the gas sales agreement with PT Perusahaan Gas Negara Tbk (PGN), Indonesia’s leading natural gas distributor and subsidiary of state-owned oil and gas giant Pertamina. The Heads of Agreement signed in mid-2024 has matured into a formal gas sales and purchase agreement, with government bodies SKK Migas and the Ministry of Energy and Mineral Resources approving gas allocations to facilitate sales.
Advancing Other Key Assets
Beyond Tanjung Enim, NuEnergy plans to deploy funds to advance three additional PSCs; Muralim, Muara Enim, and Muara Enim II; towards development. Activities include ongoing dewatering, gas flaring tests, and submission of plans of development to Indonesian regulators. These efforts aim to build a cohesive CBM hub in South Sumatra, positioning NuEnergy as a significant clean energy supplier in the region.
Outlook and Shareholder Engagement
The company encourages eligible shareholders to participate in the entitlement offer, which not only provides capital for growth but also an opportunity to maintain or increase their stake as NuEnergy transitions from exploration to commercial production. The success of this capital raise will be pivotal in sustaining momentum and delivering on the company’s vision of supplying clean, reliable energy to Indonesia’s fast-growing market.
Bottom Line?
NuEnergy’s entitlement offer marks a decisive step towards commercialising Indonesia’s first coal bed methane project, with shareholder support critical to unlocking its full potential.
Questions in the middle?
- Will shareholder uptake exceed the underwriting commitment to fully fund development plans?
- How quickly can NuEnergy scale gas production beyond the initial 1 MMSCFD phase?
- What regulatory or operational risks could impact the timelines for the other three PSCs?
