ABN 50 009 126 238 ASX ANNOUNCEMENT 20 May 2015 Conditional Agreement to acquire Coal Bed Methane PSCs from Dart NuEnergy Gas Limited (ASX:NGY) (“NGY” or “the Company”) is pleased to announce the signing of the conditional Share Purchase Agreement (“SPA”) with Dart Energy International Limited (“Dart”) on 20 May 2015 to acquire 100% of the issued share capital of Dart Energy (Indonesia) Holdings Pte Ltd (“Dart Indonesia”). Dart Indonesia, through its group controlled companies (“Dart Indonesia Group”), has a participating interest in the following Production Sharing Contracts (“PSC”) and joint evaluation (“JE”) covering 1,559 and 482 square kilometres:- a) 45% participating interest in Tanjung Enim CBM PSC, South Sumatra; b) 50% participating interest in Muralim CBM PSC, South Sumatra; c) 100% participating interest in Bontang-Bengalon CBM PSC, East Kalimantan; and d) rights to the JE of Bungamas CBM, South Sumatra The acquisition of Dart Indonesia is for a cash consideration (“Consideration”) of USD $1million to be funded from NGY’s available cash. The key terms are set out in Attachment 1. Dart Indonesia Group CBM Assets Tanjung Enim PSC Tanjung Enim PSC is located in Muara Enim Regency, South Sumatra Province. This PSC was awarded by SKK Migas (formerly known as Badan Pelaksana Usaha Hulu Minyak dan Gas/Implementing Body of the Oil and Gas Upstream Activities) (“BP Migas”) on 4 August 2009 for 30 years. The exploration period under the PSC is 6 years up to August 2015. The contract area comprises a total of 313 square kilometers containing an average of 65 meters to 70 meters net coal thickness, low rank coal seams ranging in depth from 300 meters to 700 meters with an average reported gas content of 120 standard cubic foot (“scf”)/ton. With these geological and technical parameters, Tanjung Enim PSC is among the CBM PSCs in Indonesia which have high potential for commercial CBM development and is close to existing oil and gas infrastructure and markets. For personal use only Muralim PSC The Muralim PSC was awarded on 3 December 2010 for 30 years. The exploration period under the PSC is 6 years up to December 2016. Corporate Office T: (+612) 9199 5522 Suite 2001, Level 20 Australia Square F: (+612) 9247 8966 264 George Street, SYDNEY 2000 E: [email protected] AUSTRALIA https://twitter.com/NuEnergyLtd www.nuenergygas.com ABN 50 009 126 238 The Muralim PSC is located in 3 regencies, namely Musi Rawas, Lahat and Muara Enim. The contract area comprises a total 835 square kilometers. Wells drilled in mid-2012 have indicated average net coal thickness of around 29 meters to 30 meters, low rank coal seams ranging from depth of 500 meters to 700 meters with an average gas content of 105 scf/ton. Muralim PSC is located adjacent to Tanjung Enim PSC, which is also among the CBM PSCs in Indonesia which have high potential for commercial CBM development. Bontang Bengalon PSC (“BB PSC”) The BB PSC was awarded on 9 October 2012 for 30 years. The BB PSC is located in East Kutai Regency and Bontang City, East Kalimantan Province. The contract covers an area of 411 square kilometers. The exploration period under the PSC is 6 years up to October 2018. No significant works have yet commenced. Bungamas Joint Evaluation In 2014, Bungamas Joint Evaluation was awarded by the Indonesian Government to a consortium of Dart Indonesia, Bungamas International Company, PT Bukit Asam (Persero) Tbk and PT Mantra Energy Services for the application of a CBM PSC in the Bungamas area. The Bungamas area is located adjacent to Tanjung Enim PSC and Muralim PSC. The Bungamas Joint Evaluation covers an area of 482 square kilometers. The joint evaluation was completed on 13 February 2015 through co-operation between the consortium and the University of Trisakti representing the Indonesian Government and is currently pending a direct offer for a PSC by the Directorate General of Oil and Gas. Location of Muara Enim PSC, Muara Enim II PSC, Tanjung Enim PSC and Muralim PSC For personal use only Corporate Office T: (+612) 9199 5522 Suite 2001, Level 20 Australia Square F: (+612) 9247 8966 264 George Street, SYDNEY 2000 E: [email protected] AUSTRALIA https://twitter.com/NuEnergyLtd www.nuenergygas.com ABN 50 009 126 238 The Chairman of NGY, Kok Keong Kong, commented: “NGY is expected to boost its PSC positions in Sumatra by integrating Dart Indonesia’s PSCs and NGY’s PSCs to potentially operate a large scale CBM development which is unprecedented. We believe these PSC assets are potentially world class CBM plays and can be commercialised quickly, thereby providing early benefits to our shareholders”. NGY has consulted with ASX regarding the change in nature or scale of NGY’s activities for this acquisition under ASX Listing Rule 11.1 and has been advised that ASX Listing Rule 11.1.2 and 11.1.3 do not apply whereby shareholders’ approval is not required. NGY intends to focus solely on its PSCs in Indonesia. NGY currently has three core PSCs in South and Central Sumatra, Indonesia, covering 4,819 square kilometers. NGY is the operator of all three as follows: Muara Enim (40% participating interest) Muara Enim II (30% participating interest) Rengat (100% participating interest) Muara Enim PSC is the highest priority with 3 wells already drilled, logged and cored to evaluate the potentiality of the gas production. These wells have been converted to pilot production wells. NGY is expected to commence drilling in Rengat during the quarter and Muara Enim II in the next quarter. Muara Enim Pilot Well 2014 For personal use only Dart Indonesia and NGY are two of the leading CBM explorers and developers in Indonesia. The activities of exploration in the Tanjung Enim PSC and Muralim PSC have been professionally planned and executed, from which the same set of reservoir parameters with NGY’s PSC were revealed. Corporate Office T: (+612) 9199 5522 Suite 2001, Level 20 Australia Square F: (+612) 9247 8966 264 George Street, SYDNEY 2000 E: [email protected] AUSTRALIA https://twitter.com/NuEnergyLtd www.nuenergygas.com ABN 50 009 126 238 The addition of Dart Indonesia’s PSC assets, mainly Tanjung Enim PSC which is adjacent to the west of NGY’s Muara Enim PSC and Muara Enim II PSC, will enable them to be evaluated and developed as a whole and provide the necessary synergy to NGY to achieve commercialization in the shortest time. ENDS ABOUT NUENERGY GAS NuEnergy is an emerging ASX listed gas and ancillary power generation development company with an immediate focus on establishing unconventional gas exploration & production in Indonesia. The company’s overall strategy is to rapidly prove up CBM and shale gas resources and bring these resources to production through small scale power generation, CNG and mini LNG and via connection to the local gas grid. NuEnergy has secured strategically located CBM and shale gas concessions in areas where there is a significantly undersupplied gas and power market and where possible where there is abundant energy infrastructure to take gas and/or power to market. NuEnergy has three operated PSCs in Indonesia Shareholder Enquiries NuEnergy Gas Limited Tel: (61) 2 9199 5522 www.NuEnergygas.com For personal use only Corporate Office T: (+612) 9199 5522 Suite 2001, Level 20 Australia Square F: (+612) 9247 8966 264 George Street, SYDNEY 2000 E: [email protected] AUSTRALIA https://twitter.com/NuEnergyLtd www.nuenergygas.com ABN 50 009 126 238 Attachment 1 – Key Terms of Conditional Share Purchase Agreement The key terms of the Conditional Share Purchase Agreement (“SPA”) are as follows: i) the Consideration shall be paid by a deposit (“Deposit”) of USD500,000 on the date of the SPA and the balance of USD500,000 on the completion of the SPA (“Completion Date”) subject to satisfaction of a number of conditions in accordance with the terms of the SPA; ii) Dart Indonesia will transfer its entire shareholding in Dart Energy (Sangatta West) Pte Ltd (“Dart Sangatta”) at any time after the SPA date but before the Completion Date to an entity within Dart’s group but which is not part of Dar Indonesia Group; iii) Immediately upon the execution of the SPA, NGY will take over the management and operations of the Dart Indonesia Group via an Operating Committee comprising 1 appointee nominated by Dart and 2 or more appointees nominated by NGY; iv) Prior to completion of the SPA, Dart will retain full and absolute control over all matters or decisions in relation to or in any way affecting Dart Sangatta or the Dart Sangatta Disposal (“Sangatta Disposal”; v) Upon NGY or the Operating Committee taking over control of the management and operations of the Dart Indonesia Group following the execution of the SPA, NGY shall procure the performance and discharge the Dart Indonesia Group’s obligations in respect of all overheads, operation and administrative costs arising after the date of the SPA for an aggregate amount not exceeding USD500,000 (“Initial Expenses”); vi) Completion of the SPA and the obligations of the parties to the SPA are subject to the following conditions being satisfied or waived (“Conditions Precedent”) by the day falling 1 year from the date of the SPA, or such later date as the parties may mutually agree upon (“Cut-Off Date”): a) Dart having obtained the required approval of Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (“SKK Migas”) and the Indonesian Ministry of Energy and Mineral Resources in connection with the indirect change of control of the Dart Indonesia Group that are party to the relevant PSCs or where such approval is granted subject to certain terms and conditions, such terms and conditions are acceptable by NGY; b) Dart having obtained an extension of the exploration period for the Tanjung Enim PSC from SKK Migas and the Indonesian Ministry of Energy and Mineral Resources for an additional period of at least 2 years from the expiration of the existing exploration period; c) Dart Energy (Tanjung Enim) Pte Ltd (“DETE”) having given all other parties to the Tanjung Enim Joint Operating Agreement (“JOA”) the notification required under the Tanjung Enim JOA; and d) the completion of the Sangatta Disposal.