NuEnergy Capital Limited ABN 50 009 126 238 REPORT ON ACTIVITIES FOR THE QUARTER ENDED 30 September 2011 Highlights Signing of First Joint Operating Agreement Appointment of new CEO On the 4 th of August 2011, the Company signed a Joint Operating Agreement with PT Pertamina Hulu Energi Metana Sumatera, an affiliate company of PT PERTAMINA. The execution of this agreement represents a further important milestone in the development of the relationship between NuEnergy Capital Limited and PT PERTAMINA. On the 19 th of September 2011, the Company appointed Christopher Newport as Chief Executive Officer. CBM OPERATIONS IN INDONESIA Drilling and Resource Estimate As previously advised the Company plans to commence drilling on the existing tenements during the next of this year (December 2011). The drilling of the first well is expected to commence in late October on the highly prospective Muara Enim PSC. The Muara Enim PSCs are located in South Sumatra. Together they comprise a combined area of 1,861 km2. A preliminary resource estimate prepared by PT Trias Energy Perkasa for the Muara Enim PSC estimated Gas in Place in that concession of between 4.1 and 4.6 Tcf. Gas in place estimates for the Muara Enim and Rengat PSCs are in the process of being matured and these will be further updated upon the completion of the current coal coring program and laboratory analysis of coal samples. After final inspection during August 2011 in China the HCR-8 Coring Rig and ancillary drilling equipment departed China for Indonesia on 30 September 2011. Level 20 Australia Square, 264 George Street, Sydney NSW 2000 Tel: +61 2 9252 5766 Fax: +61 2 9247 8966 Email: info@nuenergycorp.net
Mixer Unit Accumulator unit before containerising Pump and Engine Unit Drilling pads and land access agreements have been completed enabling drilling to commence immediately upon the arrival of the rig on site in Sumatra in late October. Work Programme on Existing PSCs On Muara Enim PSC in South Sumatra a G&G study was completed in September. Two wells are committed to be drilled on block from October to December 2011 and this work will be completed together with the testing of cores and lab analysis in that period. MIGAS SKPI (approval) has been issued to the drilling contractor, landowner compensation for the drill pads finalised, rig access roads completed and the camp site area cleared ready to accept the drilling camp. All of these planned pre-drilling works have enabled drilling to commence immediately upon arrival of the rig. A laboratory testing tender was issued during the September Quarter. NuEnergy is reviewing the working environment in the Muara Enim area in order to find ways to enhance the lives of the local community. Level 20 Australia Square, 264 George Street, Sydney NSW 2000 Tel: +61 2 9252 5766 Fax: +61 2 9247 8966 Email: info@nuenergycorp.net
On Rengat PSC in Central Sumatra a G&G study was also completed during the. Land owner compensation negotiations for two drill pads are progressing. During the detailed work was completed with respect to the 2012 work program for both the Muara Enim and Rengat PSCs. Planning meetings were held with the Government upstream regulator, BPMIGAS. These work programs (and associated budgets) are expected to be finalised in December 2011. For the Muara Enim and Rengat PSCs environmental monitoring is ongoing and an Environmental Assessment Plan was completed. This plan is scheduled to be presented to BPMIGAS in November 2011. On Muara Enim PSC an Environmental Management Plan was approved by the local Regency during the. RELOCATION OF OFFICE The Company advises that during the it relocated its office to Sydney: Suite 2001, Level 20 Australia Square 264 George Street SYDNEY NSW 2000 Ph: (02) 9252 5766 COMPANY SECRETARY During the as a consequence of the relocation of the office to Sydney, Mr Adrien Wing resigned as Company Secretary of NuEnergy Capital Limited. The Company appointed Ms Monika Kwiatkowski and Ms Rozanna Lee as Co-Company Secretaries of the Company. Ms Monika Kwiatkowski subsequently resigned as Co-Company Secretary on 10 October 2011 as only one Company Secretary was considered necessary for NuEnergy s corporate secretarial obligations. ABOUT NUENERGY CAPITAL LIMITED ( NGY ) NuEnergy Capital Limited is an Australian emerging energy company with an immediate focus on unconventional gas production in Indonesia. It has acquired an Indonesian company which owns a number of unconventional gas interests in Indonesia. The Company s overall strategy is to explore, establish and produce commercial gas over its project areas. The Company is actively looking to expand its unconventional gas areas from Indonesia to Indo China and particularly into East Africa. The Company s Australian listing code in Australia is NGY. Further details are available on the Company s website at www.nuenergycorp.net Should you wish to discuss any of these matters further please contact Alan Fraser on (03) 9614 0600. Graeme Robertson Chairman Level 20 Australia Square, 264 George Street, Sydney NSW 2000 Tel: +61 2 9252 5766 Fax: +61 2 9247 8966 Email: info@nuenergycorp.net
Rule 5.3 Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10 Name of entity NuEnergy Capital Limited ABN Quarter ended ( current ) 50 009 126 238 September 2011 Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from product sales and related debtors Current - Year to date (3 months) 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration (1,116) (1,116) (324) (324) 1.3 Dividends received 1.4 Interest and other items of a similar nature 60 60 received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) (16) (16) Net Operating Cash Flows (1,396) (1,396) Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward) (1,396) (1,396) 17/12/2010 Page 1
1.13 Total operating and investing cash flows (brought forward) (1,396) (1,396) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows Net increase (decrease) in cash held (1,396) (1,396) 1.20 Cash at beginning of /year to date 7,806 7,806 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of 6,410 6,410 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 135 1.24 Aggregate amount of loans to the parties included in item 1.10-1.25 Explanation necessary for an understanding of the transactions Directors fees, salaries, consulting fees, management fees and superannuation payments Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Financing facilities available Add notes as necessary for an understanding of the position. Page 2 17/12/2010
3.1 Loan facilities 3.2 Credit standby arrangements Amount available Amount used - - - - Estimated cash outflows for next 4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration Total 3,111 370 3,481 Reconciliation of cash Reconciliation of cash at the end of the (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current Previous 5.1 Cash on hand and at bank 647 796 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) 5,763 7,010 Total: cash at end of (item 1.22) 6,410 7,806 Changes in interests in mining tenements 6.1 Interests in mining tenements relinquished, reduced or lapsed Tenement reference Nature of interest (note (2)) Interest at beginning of Interest at end of - - - - 6.2 Interests in mining tenements acquired or increased 17/12/2010 Page 3
Issued and quoted securities at end of current Description includes rate of interest and any redemption or conversion rights together with prices and dates. 7.1 Preference + securities (description) 7.2 Changes during (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions 7.3 + Ordinary securities Total number Number quoted Issue price per security (see note 3) (cents) 124,804,751 124,804,751 Amount paid up per security (see note 3) (cents) 7.4 Changes during (a) Increases through issues (b) Decreases through returns of capital, buybacks 7.5 + Convertible debt securities (description) 7.6 Changes during (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and conversion factor) Exercise price Expiry date 1,500,000 $0.40 31-Dec-2012 12,500,000 $0.40 14-Jan-2013 1,250,000 $0.48 08-Feb-2014 1,250,000 $0.60 01-Jun-2014 1,250,000 $0.80 01-Dec-2014 500,000 $0.80 28-Feb-2014 7.8 Issued during - - Exercise price Expiry date Page 4 17/12/2010
7.9 Exercised during Exercise price Expiry date 7.10 Expired during Exercise price Expiry date 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only) - - - - Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5). 2 This statement does give a true and fair view of the matters disclosed. Sign here:... Date: 27 October 2011 Chairman Print name: Graeme Robertson Notes 1 The ly report provides a basis for informing the market how the entity s activities have been financed for the past and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 17/12/2010 Page 5
3 Issued and quoted securities. The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. == == == == == Page 6 17/12/2010