ABN 50 009 126 238

25th June 2015

DRILLING COMMENCES AT TANJUNG ENIM PSC, INDONESIA

 Core Well "Spudded" - Well to be drilled to target coal seams.

 NGY to log and conduct Lab Core Analysis on coal formations in South Sumatra Basin

NuEnergy Gas Limited ("NuEnergy" ASX: NGY) is pleased to announce that drilling has commenced for the core well - TE-008C, at the Tanjung Enim Production Sharing Contract (PSC) tenement in South Sumatra, Indonesia.

Mobilisation of the rig started in mid-June for well TE-008C which is located approximately 185 km west of Palembang, Indonesia. The track mounted rig is currently being used to drill to a depth of 300 meters targeting known coal seams. TE-008C is the first of the three core wells to be drilled this quarter with a view of further development in the PSC and the establishment of a gas reserve prior to commercialisation.
NGY will core, log and conduct core lab analysis to identify coal characteristics including gas content and saturation in addition to mapping coal continuity across the basin.

Rig Site at TE-008C

NuEnergy's Chief Executive Officer Dr Ian Wang commented: "With the proposed acquisition of Dart Indonesia, NGY is ensuring the delivery of its work commitments and continues to be at the forefront of the CBM industry in Indonesia. In conjunction with Rengat's PSC Drilling Program, the Tanjung Enim drilling campaign reinforces NGY's drive towards an early appraisal of resource certification."

Corporate Office

Suite 2001, Level 20 Australia Square

264 George Street, SYDNEY 2000

AUSTRALIA

T: (+612) 9199 5522

F: (+612) 9247 8966

E: [email protected] www.nuenergygas.com

ABN 50 009 126 238

ABOUT NUENERGY GAS

NuEnergy Gas Limited (NuEnergy) is an emerging ASX listed gas and ancillary power generation development company with an immediate focus on establishing unconventional gas production in Indonesia.
NuEnergy has a strategy to acquire, explore, appraise and develop Coal Bed Methane ("CBM") acreage in this region. It is listed on the Australian Securities Exchange (ASX: NGY) with offices in Sydney (Australia) and Jakarta (Indonesia).
The Company's overall strategy is to explore and establish commercial resources/reserves over its CBM
projects, construct production facilities and commence production as soon as possible.
The Company is led by a team of experienced executives with a track record of successfully identifying and
developing projects around the world. This team is complemented by the skills of our Indonesian partners to maximise the value of the company's coal bed methane opportunities.

Corporate Office

Suite 2001, Level 20 Australia Square

264 George Street, SYDNEY 2000

AUSTRALIA

T: (+612) 9199 5522

F: (+612) 9247 8966

E: [email protected] www.nuenergygas.com