Gas2Grid Limited (ASX:GGX) Annual General Meeting Update
Presentation Highlights
Managing Director Dennis Morton presented significant updates during the 2024 Annual General Meeting of Gas2Grid Limited. The company expressed ongoing challenges after being suspended from quoting on the ASX since September 2023 due to a lack of exploration assets. It aims to acquire active exploration assets by September 2025 and demonstrate related activities.
Philippines Developments
In the Philippines, Gas2Grid Limited has executed a new service contract offered by the Philippine Department of Energy (DOE). This contract is in its final stage before being granted by the President, covering an area similar to the previously held SC 44. It allows a new seven-year term, improving operational stability.
Additionally, the company is planning appraisal drilling at the Malolos Oil Field, aiming to convert an estimated 20 million barrels of oil in place into reserves.
French Legal Matters
Gas2Grid Limited reported on a court hearing held in France regarding a financial claim. Although the court ruled in the company’s favour in November 2023, it only awarded €60,000 of a €34.5 million claim. The company has lodged an appeal, seeking increased compensation for damages related to the unlawful refusal to renew the St. Griede permit.
Future Strategies
The company plans to utilise its owned Rig-2 for drilling equity in the Philippine regions and aims to pursue additional known oil and gas plays due to favourable fiscal terms. The strategy for the Cebu area includes completing the Nuevo Malolos-1 deepening and drilling a new well.
Dennis Morton commented, “We are committed to building our presence in the Philippines, where the potential for profitable exploration is substantial due to the region’s favourable contractor terms.”
Financial Commitments
Gas2Grid has laid out substantial financial commitments across various sub-phases of its work program related to the new service contract in Cebu, totalling US$3.05 million over seven years. This includes maintenance of drilling rigs and appraisal well activities, allowing the company to strategically advance its operational capabilities.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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