PETALING JAYA: Globaltec Formation Bhd’s (Globaltec) share price rose to a high of 6.5 sen yesterday before closing unchanged on news that its Australian Securities Exchange-listed subsidiary NuEnergy Gas Ltd (NGY) has received approval to prepare its plan of development for the Tanjung Enim Production Sharing Contract (PSC) in South Sumatra, Indonesia.
Globaltec’s shares, trading in which was halted pending the announcement, closed at 5.5 sen, with some 119 million changing hands. It was the most actively traded counter yesterday.
The announcement is a significant milestone for the Globaltec group’s aspirations to deliver its first coal-bed methane supply.
In a filing with the stock exchange yesterday, Globaltec said NGY received the approval from the Indonesian Special Task Force for Upstream Oil and Gas Business Activities (commonly known as SKK Migas).
NGY will work closely with SKK Migas to submit the plan of development to Indonesia’s energy and mineral resources minister, through the head of SKK Migas, before the end of the year.
Both the partners for the Tanjung Enim PSC, PT Pertamina (Indonesia’s state-owned oil and gas company) and PT Bukit Asam (Indonesia’s state-owned coal mining company), have given their commitments to the plan of development preparation and to the long-term development of the PSC.
NGY has a 45% participating interest in the Tanjung Enim coal-bed methane, while the other two parties have a 27.5% interest each.
The proposed concept for the initial plan of development, plans for the development in two target areas, in the north and north-west of the Tanjung Enim PSC where NGY has focused its exploration, drilling and pilot production activities over the last eight years.
The target buyers will be focused around the proposed plan of development areas, which are close to the existing networks and markets with gas infrastructure. During the plan of development preparation, NGY will hold discussions with the target buyers and negotiate gas sale agreements, Globaltec said.
NGY will focus its efforts on the timely execution of the plan of development preparation process and to deliver the proposal by the end of the year, it added.
Source: The Sun Daily