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NuEnergy Gas has signed an exclusive agreement with a Mozambican company to explore and develop coal bed methane (CBM) in the East African country

Exploration activities will be undertaken in the Tete Province, the Australia-based company added.

According to NuEnergy Gas, the unnamed local player already has an exclusive prospecting licence in Malawi and two operating agreements with a Tanzanian coal producer, as well as two exploration applications in Tanzania along the southern border area with Mozambique.

NuEnergy Gas will have the option to evaluate other prospective regions in Mozambique for unconventional gas, it added.