NuEnergy in Tanzanian CBM agreements

Moving in: NuEnergy has expanded its operations into Tanzania following the signing of joint venture agreements with Tancoal and Tanzacoal

AFP/SCANPIX

Josh Lewis

, Josh Lewis

 21 November 2011 07:35 GMT

Australia-listed NuEnergy has signed joint venture coalbed methane (CBM) agreements with Tancoal Energy and Tazacoal East Africa Mining, covering coal tenements in Tanzania.

Under the agreements NuEnergy will hold a 70% interest in the joint ventures and full operating rights and will initially fund all the CBM development costs.

Tancoal and Tanzacoal will later repay their interest in the development costs from their share of the operating profits.

Tancoal and Tanzacoal will each earn 30% of the unconventional gas revenue plus a 5% royalty payment which was agreed on the basis the joint venture would be using all of Tancoal and Tanzacoal’s existing coal tenements.

Under the agreements NuEnergy also holds the right to participate in other…

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