The Nuenergy Gas Ltd (ASX: NGY) share price is on fire today. And that's an understatement. Nuenergy shares are up an extraordinary 151.72% today (at the time of writing) to 7.3 cents a share. That's after opening at just 3.3 cents a share this morning.

As recently as January this year, Nuenergy was a 1 cent share.

So what on earth is causing this share price explosion for Nuenergy today?

Indonesian approval lights a rocket

Nuenergy's explosive opening this morning can be put down to an ASX release the company made today. It came out just before market open. In this announcement, Nuenergy stated that it had received an "advance notice" of a virtual ceremony that will take place on 17 June.

The company states that it "has been proposed" that the Indonesian government's Special Task Force for Upstream Oil and Gas Business Activities will grant approval for Nuenergy's Plan of Development 1 at its Tanjung Enim Block in South Sumatra.

The Tanjung Enim Block houses a deposit of coal bed methane, which Nuenergy is planning on developing. The company tells us that this will "mark the first grant of a plan of development for CBM in Indonesia. Nuenergy states that this announcement represents "an evolution from an exploration to a development phase" for the Tanjung Enim Block.

Nuenergy's chief executive officer, Dr Ian Wang stated that: "This development represents a major step for the company and Indonesia's CBM industry to transition from exploratory into a commercial phase."

Nuenergy has promised to make a further "detailed announcement" on 17 June. Depending on a final grant of approval, that is.

About the Nuenergy Gas share price

Nuenergy Gas is an ASX mining and exploration company that focuses on gas and ancillary power generation. It has a primary focus on Indonesia.

Even after today's explosive pricing developments, Nuenergy has struggled as a long-term investment. It's still around 77% below its share price peak of 33 cents a share that we saw all the way back in early 2006.

On current pricing, Nuenergy shares have a market capitalisation of $133.1 million and a price-to-earnings (P/E) ratio of 17.7.

The post The Nuenergy Gas (ASX:NGY) share price has rocketed 151% today appeared first on The Motley Fool Australia.

The NuEnergy Gas Ltd (ASX: NGY) share price has started the week with a bang.

In afternoon trade the Indonesia-based independent clean energy company's shares are up an astonishing 230% to 9.9 cents.

This means the NuEnergy share price is up a massive 800% since the start of the year.

What is NuEnergy?

NuEnergy is a clean energy company focused on developing Indonesian unconventional gas assets.

The company explains that it was formed with the goal of reliably and sustainably supplying clean energy to meet the growing energy demands of Indonesia. It is one of the world's fastest growing economies and energy consuming markets.

The company holds four onshore Production Sharing Contracts (PSCs) across South Sumatr and is fully focused on quickly moving its high value unconventional gas assets from exploration to development stage.

Why did the NuEnergy share price rocket higher today?

Today's impressive gain by the NuEnergy share price not only caught the eye of investors but also the Australian share market operator. This morning it hit the company with a price query request.

In response to the request, management said: "The Directors are unaware of any other explanation for the recent trading in its securities. The Directors confirm that with respect to the Tanjung Enim PSC, the approval of Tanjung Enim POD 1 is still in progress. The Muralim PSC is still being prepared for submission."

What has been happening recently?

During the last quarter, NuEnergy's attention was principally focused on efforts to secure approval for the Tanjung Enim PSC Plan of Development 1 (POD 1) and continuing to amend the Tanjung Enim PSC contract.

Since the end of the quarter, the company has made further developments.

According to a recent release, the company received an acknowledgement letter from Indonesian authorities in connection with its 40% working interest in the 587 km2 Muara Enim PSC.

This letter confirmed the discovery of natural gas in the Muara Enim PSC area, acknowledged the completion of the exploration firm commitments by NuEnergy, and allows NuEnergy to submit a plan of development (POD) within the next 3 years.

This news appears to have got investors excited and has helped drive the NuEnergy share price materially higher since the start of the year.

The post Why the NuEnergy (ASX:NGY) share price is rocketing 230% higher today appeared first on The Motley Fool Australia.