NuEnergy signed a joint venture deal with Tancoal and Tazacoal East Africa Mining in 2011 that gave it CBM exploration rights over their tenements on the Songwe-Kiwira and Ngaka coalfields, surrounding Lake Malawi in Tanzania’s south.
Tancoal and Tazacoal would earn 30% of the unconventional gas revenue plus a 5% royalty payment from gas produced from the project, while NuEnergy would hold 70% of the joint venture.
