KUALA LUMPUR (Sept 7): Globaltec Formation Bhd’s (KL:GLOTEC) 70%-owned subsidiary NuEnergy Gas Ltd is raising A$3.05 million (about RM8.8 million) to advance the commercialisation of its gas assets in Indonesia.

The proceeds will mainly be used to support development of the Tanjung Enim production sharing contract (PSC), beginning with an early gas sales initiative targeting one million standard cubic feet per day (MMSCFD), followed by a second phase of 24 MMSCFD.

NuEnergy said the placement, priced at A$0.038 per share, would also support the development of its remaining three PSCs and provide working capital as it moves its Indonesian coal-bed methane assets closer to commercial production.

Following completion of the placement, Globaltec’s stake in NuEnergy will be diluted to 68% from 70%, while NuEnergy will remain a subsidiary of the group.

The placement is not expected to have any material effect on Globaltec’s earnings and net assets for the financial year ending June 30, 2027.

NuEnergy holds four onshore coal-bed methane PSCs in South Sumatra.

Separately, in another filing, NuEnergy said it had been formally notified by Indonesia’s Ministry of National Development Planning that President Prabowo Subianto had approved the development of the Tanjung Enim PSC as one of the country’s national strategic projects.

The designation is expected to facilitate coordination with government authorities on areas including land access, permitting and supporting infrastructure as NuEnergy advances the project, potentially reducing execution risks and improving schedule visibility.