KUALA LUMPUR (March 18): Globaltec Formation Bhd said its Australian-listed NuEnergy Gas Ltd has secured an extension until Sept 17, 2025 to undertake exploration of its Muara Enim production sharing contract (PSC) in South Sumatera, Indonesia.

The additional exploration time for the onshore asset was granted by Indonesia’s Ministry of Energy and Mineral Resources.

“The extension will allow NuEnergy to carry out activities to determine the gas productivity of the PSC and to submit a plan of development,” it said.

NuEnergy’s unit PT Trisula CBM Energi Pte Ltd has a 40% working interest in the Muara Enim PSC, covering 587 square kilometres.

“Trisula has conducted the geology and geophysics studies, drilled three exploration wells, and performed dewatering in the Muara Enim PSC area.

“Moreover, the Muara Enim PSC is located close to the remaining three PSC assets of NuEnergy, of which the Tanjung Enim PSC is the most advanced PSC and is in the final preparations for early gas production.

“This bodes well for an effective integration and development of all NuEnergy’s PSCs as a coal bed methane hub, to supply sustainable clean energy to the local market and the country,” NuEnergy said.

Globaltec owns 65% in NuEnergy. The energy segment has yet to contribute to the group’s revenue.

The bulk of Globaltec’s earnings comes from its integrated manufacturing services for stamping, tooling and automotive components. It also undertakes harvesting and the sale of fresh fruit bunches (FFB), which was loss-making in its current financial year to-date.

In its first half ended Dec 31, 2023 (1HFY2024), Globaltec’s net profit fell 38% to RM3.71 million or 1.36 sen per share, from RM6.07 million or 2.25 sen per share, on the back of weak demand and overstocking seen by its manufacturing segment, coupled with weak FFB prices.

Revenue fell 10% to RM97.38 million, from RM108.66 million.

Shares of Globaltec fell 1.5 sen or 2.9% to close at 51 sen on Monday, giving it a market capitalisation of RM135.96 million.