SYDNEY (Yosefardi) – NuEnergy has signed letter of intent (LoI) with a strategic Asian investors including share placement and farm-in to the Rengat production sharing contract (PSC) located in Central Sumatra, Indonesia.
The strategic Asian investor will invest in NuEnergy via a 10% share placement valuing of minimum AU$1.3 million, and pay NuEnergy US$2.7 million in cash.
In return, the strategic investor will be assigned a 49.9% participating interest in Rengat PSC.
The total cash contribution under the proposed transaction of $4 million (minimum) will fund the drilling of additional pilot wells in NuEnergy’s South Sumatra PSCs to assist the ongoing work program to achieve commercial production.