NuEnergy to Raise $2.27M Via Rights Issue to Fund Muara Enim PSC Project

Australia's gas and ancillary power generation development company NuEnergy Gas Limited announced Thursday that a partially underwritten non-renounceable Rights Issue of one (1) New Share for every four (4) shares held on the Record Date Dec. 6 will be made to Eligible Shareholders of NuEnergy at the issue price of $0.0318 (AUD 0.035) per share, to raise up to approximately $2.27 million (AUD 2.5 million) before transaction costs.

The Rights Issue will be partially underwritten by Farjoy Pty Limited (an existing shareholder of NGY). The underwriter will be paid an underwriting fee of 4 percent of the Amount Underwritten.

The Company has today released an Offer Document for the Rights Issue outlining the full details of the Offer. The closing date for acceptance of rights is intended to be Dec. 27.

An Appendix of the Rights Issue is attached.

Sources and Uses of Funds

Funds raised by the Rights Issue will predominantly be used to continue expansion of NuEnergy's pilot development program in South Sumatra, Indonesia. The table below shows the sources and uses assuming the offer is fully subscribed.

Sources of Funds

  • Cash on hand: $0.9 million (AUD 1 million)
  • Total funds raised under the offer if fully subscribed: $2.27 million (AUD 2.5 million)
  • Total funds budgeted to be available: $3.17 million (AUD 3.5 million)

Use of Funds

  • PSC Work Program & Budget / Pilot Program: $2.18 million (AUD 2.4 million)
  • Exploration Eastern Africa: $0.18 million (AUD 0.2 million)
  • Working Capital: $0.72 million (AUD 0.8 million)
  • Costs of Offer: $0.09 million (AUD 0.1 million)
  • Total funds budgeted to be available: $3.17 million (AUD 3.5 million)

The Offer Document outlining the details of the offer will be mailed to each Eligible Shareholder Nov. 29.

Each Shareholder's entitlement will be set out in the Entitlement and Acceptance Form that will accompany the Offer Document. Eligible Shareholders may also take part in a Shortfall facility. Shareholders are encouraged to read and consider the documentation sent to them carefully, and consult independent and professional financial advice.


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