NuEnergy Released Investment Agreement Update; Saujana To Pay US$250,000 Extension Fees

NuEnergy Gas Limited (ASX: NGY) is an Australia registered company, involved in various gas exploration activities. On 3rd June 2019, the company updated the market about the investment agreement with Saujana E&P Sdn Bhd related to Saujana E&P’s strategic investment in NuEnergy through share placement of 1,540,832,050 new NuEnergy shares. It is equivalent to 51% of the enlarged share capital of the NGY in consideration of $0.025 per share along with total subscription value amounting to $38,520,801 upon the terms and subject to the conditions of the investment agreement.

The Saujana E&P requested a further extension till 7th June 2019 for the deposit payment, which was due to be paid on 31st May 2019. NGY extended the deposit payment date to 7th June 2019, in consideration of extension fee totaling to US$250,000, which is to be paid to NGY by 4th June 2019. Additionally, the company communicated that this extension fee will be deemed as part payment of the deposit, if Saujana E&P fails to pay deposit by the deadline, the extension fee might be forfeited by NuEnergy.

Moving to Quarterly Report for March 2019. The company’s operations were primarily focused on extending the Muralim Production Sharing Contract to continue with appraisal activities and to ramp up the Plan of Development proposal. NGY is the operator of the Muralim PSC and holds a 50% participating interest along with Medco holding the remaining 50% participating interest.

Separately, looking at the half-yearly results. The group reported a net loss of $806,964 for the half year to 31 December 2018, when compared to a net loss of $11,419,526 for the prior corresponding half year. The decrease in net loss was attributed to the full impairment of the exploration and evaluation of asset amounting to $11,397,870 in the corresponding half year, which was recognised for the Rengat PSC. The Group had cash and cash equivalents of $228,100 as on 31st December 2018, with net assets amounting to $39,867,676. This compares to cash and cash equivalents of $1,369,743, with a net asset position of $38,649,357 at 30th June 2018. The net cash used in the operating activities stood at $0.647 million, including $0.567 million of exploration and evaluation expenses.

Subsequent to the half-year end, NGY inked a loan agreement with AIC Corporation Sdn Bhd, which is a related party to the company’s directors, namely Goh Tian Chuan and Chen Heng Mun. In addition, Globaltec Formation Berhad, the group’s ultimate parent will raise US$300,000 to fund part of the CBM planned exploration activities. NGY communicated that this loan is unsecured and repayable on demand along with financing cost of 10% per-annum charged on the outstanding loan computed.

The stock of NGY last traded on 3rd June 2019 at a price of $0.014 per share, no shares were traded on 4th June 2019 (as at AEST: 2:23 PM). The market capitalisation of the company is $26.66 million. The stock has provided an annual return of -65.00% and delivered returns of -48.15% and 16.00% for the three months and one-month period, respectively.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.


Disclaimer
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK