NuEnergy Completes Four Wells, Signs $3.5m Capital Raise and Key Gas Sales Deal
NuEnergy Gas Limited has completed drilling four wells at its Tanjung Enim project, gearing up for initial gas sales in the first half of FY26. The company also inked key agreements to finance and expand its coal bed methane operations in Indonesia.
- Four wells completed under Early Gas Sales Initiative at Tanjung Enim PSC
- Binding Gas Sales and Purchase Agreement signed with Indonesia’s PGN
- Collaboration deal with PT Beijing Energy Linking to finance full-scale development
- Raised approximately AUD 3.5 million via partially underwritten entitlement offer
- Pending government approvals for development plans on other PSCs in South Sumatra
Early Gas Sales Initiative Reaches Milestone
NuEnergy Gas Limited (ASX – NGY) has marked a significant operational milestone with the completion of drilling four wells under its Early Gas Sales Initiative (EGSI) at the Tanjung Enim Production Sharing Contract (PSC) in South Sumatra, Indonesia. This initiative targets initial gas sales of 1 million standard cubic feet per day (MMSCFD), setting the stage for first gas sales expected in the first half of fiscal year 2026.
Gas shows observed during drilling confirmed the presence of coal bed methane (CBM) across multiple seams, and dewatering operations have commenced alongside gas flaring to establish flow rates and well performance. This progress represents the first phase of a broader 25 MMSCFD production plan under the approved Plan of Development 1 (POD 1) at Tanjung Enim.
Commercial Agreements Pave Way for Growth
In a key commercial development, NuEnergy signed a binding Gas Sales and Purchase Agreement (GSPA) with PT Perusahaan Gas Negara (PGN), Indonesia’s leading natural gas distributor and a subsidiary of state energy giant PT Pertamina. This agreement secures a buyer for the initial 1 MMSCFD of CBM, underpinning the company’s early revenue stream and market entry.
Further strengthening its development pathway, NuEnergy entered into a collaboration agreement with PT Beijing Energy Linking (PT BJEL) in January 2026. Under this deal, PT BJEL will act as the lead contractor for engineering, procurement, construction, and commissioning (EPCC) of the Tanjung Enim and Muralim PSCs. Notably, PT BJEL will finance 100% of the field development costs at a capped price, with repayment structured through future gas sales. This arrangement significantly de-risks NuEnergy’s capital expenditure and accelerates project execution.
Capital Raising and Broader Portfolio Progress
To support the EGSI and advance other PSCs, NuEnergy completed a partially underwritten entitlement offer, raising approximately AUD 3.5 million. This capital injection will fund ongoing development activities and help transition the company’s high-value CBM assets from exploration to production.
Beyond Tanjung Enim, NuEnergy is progressing development plans for its Muralim and Muara Enim PSCs, with applications for plan extensions and approvals currently pending from Indonesia’s Ministry of Energy and Mineral Resources. These approvals will be critical to unlocking further production potential and consolidating NuEnergy’s position as a pioneer in Indonesia’s clean energy sector.
Strategic Outlook
NuEnergy’s focused strategy to develop its South Sumatra CBM assets into a regional clean energy hub aligns with Indonesia’s growing demand for domestically sourced, lower-emission gas supplies. The company’s ability to secure binding sales agreements, innovative financing partnerships, and capital support positions it well to deliver shareholder value while contributing to Indonesia’s energy transition.
As NuEnergy moves toward first gas production and commercialisation, market participants will be watching closely for operational ramp-up, regulatory milestones, and the unfolding terms of its collaboration with PT BJEL.
Bottom Line?
NuEnergy’s imminent first gas sales and strategic partnerships set the stage for a transformative year in Indonesian clean energy production.
Questions in the middle?
- How quickly will gas flow rates ramp up to meet the 1 MMSCFD target and beyond?
- What are the detailed repayment terms and risks associated with PT BJEL’s financing arrangement?
- When will government approvals for the Muralim and Muara Enim PSCs be finalised, and how might delays impact timelines?
