Globatec subsidiary receives CBM certification for Tanjung Enim PSC

KUALA LUMPUR: Globatec Formation Bhd’s (GFB) subsidiary, NuEnergy Gas Ltd, has received the coal bed methane (CBM) reserves certification for the Tanjung Enim Production Sharing Contract (PSC) initial plan of development (POD) target development areas.

GFB has a 65 per cent interest in NuEnergy, which is listed on the Australian Securities Exchange.

In a filing to Bursa Malaysia yesterday, GFB said the certification was received from the Indonesia Research and Development Center for Oil and Gas Technology (LEMIGAS).

It said LEMIGAS, an Indonesian government agency, would administer the Indonesian CBM reserves certification, as it is one of the required processes in the CBM POD preparation and forms the basis of the overall POD.

NuEnergy Deputy Executive Chairman, Kee Yong Wah said the certification by LEMIGAS was an endorsement and clear indicator of the underlying prospects of the Tanjung Enim asset and was in line with its expectation of coal seams in the South Sumatra region.

“The Tanjung Enim initial target development area only represents 1.4 per cent of our total South Sumatra PSCs acreage of 2,280 square kilometre and we are excited about the huge potential of our other South Sumatra PSCs.

“We are into the final stages of the POD preparation and look forward to communicating more results,” he added.

Meanwhile, trading in the shares of GFB was halted from 9 am today following the announcement and resumed from 10am. — Bernama