NuEnergy Gas Limited announced that the Indonesian Ministry of Energy and Mineral Resources has on 17 June 2021, approved the Company's first Plan of Development for the Tanjung Enim Production Sharing Contract under a gross split scheme in South Sumatra which will allow the project to proceed to field development and surface facility construction. NuEnergy shall carry out the operations and commercial development of the Tanjung Enim POD 1 singly and exclusively. The approval of the Tanjung Enim POD I also represents the first Coal Bed Methane POD in Indonesia. In addition, NuEnergy together with its partners, PT Pertamina Hulu Energi Metra Enim and PT Bukit Asam Metana Enim has also on 17 June 2021, executed the Amended and Restated Tanjung Enim Production Sharing Contract under a gross split scheme in respect of the Tanjung Enim PSC with the Indonesian Special Task Force for Upstream Oil and Gas Business Activities. The Tanjung Enim POD I approval covers the development in two target areas, in the north and south of the contract area covering ~33km2 where the Indonesia Research and Development Center for Oil and Gas Technology has confirmed and certified reserves totalling ~164.89 Bscf in these areas. The development will consist of drilling 209 wells for the gas production and delivery to a plateau up to 25 MMSCFD over 10 years. The gas will be transported and sold through a new 24 km pipeline to be built to the north of the contract area linking the nearby existing infrastructures including PT Pertamina Gas's transmission pipeline situated in the north of the contract area, which has greater market access and flexibility within the South Sumatra region. With the Tanjung Enim POD I approval, NuEnergy can negotiate commercial terms for gas sales with interested parties. NuEnergy, alongside PT Pertamina and PT Bukit Assam as its partners to the Tanjung Enim PSC, and the Indonesian Government, have agreed to amend and restate the Tanjung Enim PSC to the Gross Split PSC scheme. The Gross Split PSC scheme will provide flexibility to the business and the regulatory processes as well as operational execution in order to achieve the highest level of efficiency which is required by the low cost and fast-moving CBM industries in Indonesia. In 2017, the Indonesian Ministry of Energy and Mineral Resources issued new regulations, introducing a new PSC scheme based on a "Gross Split" scheme. The Gross Split PSC represents an alternative to the existing cost recovery scheme. The Gross Split scheme streamlines the operational approval processes and facilitates better flexibility for vendors/sub-contractor selection to ensure cost effective and value-added products/services to the project. The conversion of the Tanjung Enim PSC to the Gross Split PSC is a step in the right direction that will provide the opportunity to strengthen the project economics while at the same time increasing the efficiency of the project execution.