KUALA LUMPUR (Jan 21): Globaltec Formation Bhd said its Australia-listed subsidiary NuEnergy Gas Ltd (NuEnergy) had received Indonesia’s approval to submit a plan of development (POD) for the Muara Enim production sharing contract (PSC) area within the next three years from Jan 18, 2021.

Globaltec told a bourse filing that NuEnergy had received an acknowledgement letter (AL) from Indonesia's special task force for upstream oil and gas (O&G) business activities, confirming the discovery of natural gas in the Muara Enim PSC area.

The AL also acknowledged the completion of exploration firm commitments by NuEnergy in respect of the Muara Enim PSC and allows NuEnergy to submit a POD.

“This represents a positive step in NuEnergy’s ongoing strategy to develop the company’s coal bed methane assets in South Sumatra and demonstrates a solid level of support from the Indonesian authorities keen to see the development of unconventional gas within Indonesia,” said NuEnergy in a statement.

It added that NuEnergy had a 40% working interest in the Muara Enim PSC, covering an area of 587km² located in South Sumatra, which is in the vicinity of a major gas supply pipeline servicing a significant portion of Indonesia.

NuEnergy has drilled two core hole wells, two exploration wells, and one production test and dewatering bore in the Muara Enim PSC area, Globaltec noted.

“We are extremely enthusiastic about the issuance of the AL and note it’s close proximity to NuEnergy’s other assets in South Sumatra, namely our Muralim PSC and the Tanjung Enim PSC. The company is currently awaiting the Tanjung Enim POD approval, which shall mark the first grant of a POD for unconventional gas in Indonesia.” NuEnergy chief executive officer (CEO) Dr Ian Wang said in a statement.

Globaltec's share trade was halted between 9am and 10am today in conjunction with the announcement.

After the resumption of trading, Globaltec was down 5.68% or 2.5 sen to 41.5 sen as at the time of writing.