Gas2Grid Pursues €34M French Claim While Securing $25M Philippines Contract

Philippines Contract Progress

Gas2Grid Limited has reported promising developments in its pursuit of a new Service Contract (SC) over central, onshore Cebu in the Philippines. The application is currently with the Philippine President's office, alongside several other prospective contracts. The company anticipates the award of this new SC in the near future, which would grant a seven-year initial term to continue oil and gas appraisal and exploration activities. This opportunity builds on approximately $25 million previously invested under Service Contract 44, positioning Gas2Grid to capitalise on its prior operational achievements.

In parallel, Gas2Grid is finalising documentation for a farmin agreement on an attractive onshore SC in the Philippines and is in advanced talks for a second farmin opportunity. These farmin deals would allow the company to deploy its drilling rigs to acquire equity stakes in existing contracts, potentially expanding its footprint and operational leverage in the region.

Legal Appeal in France

On the legal front, Gas2Grid has lodged an appeal in the Administrative Court of Appeal in Bordeaux against the French Government’s non-renewal of the St. Griede contract in the Aquitaine Basin. The company is pursuing a financial claim of €34.35 million following an earlier decision by the Pau Tribunal. The outcome of this appeal remains pending, and its resolution could have a material financial impact on the company’s balance sheet.

ASX Suspension and Compliance Challenges

Gas2Grid’s securities have been suspended from trading on the ASX since 1 September 2023 due to non-compliance with Listing Rule 12.1, which requires a sufficient level of operations to justify quotation. The ASX has set a compliance deadline of 1 September 2025, after which the company’s securities may be removed from the official list if the issues are not resolved. Gas2Grid is actively engaging with the ASX and believes that the imminent award of the new Service Contract or successful farmin agreements will help demonstrate compliance and support reinstatement of its securities.

The company acknowledges the tight timeline and the dependencies on external factors such as the Philippine President’s decision and counterparty negotiations for farmin deals. To safeguard shareholder interests, Gas2Grid has initiated discussions with the ASX on potential protective measures should compliance not be achieved in time.

Financial Position and Funding

Despite ongoing operational cash outflows, Gas2Grid maintains a solid funding position. The company ended the quarter with $70,000 in cash and $3.295 million in unused financing facilities, totaling approximately $3.365 million in available funding. At the current net cash outflow rate of $55,000 per quarter, this equates to an estimated 61.2 quarters of funding runway, providing a significant buffer to support ongoing activities and strategic initiatives.

The company’s loan facilities, totaling $4.859 million, are unsecured and provided primarily by related parties, with interest terms commencing on loans drawn after May 2024. No payments were made to related parties during the quarter, reflecting a deferral of service payments.

Looking Ahead

Gas2Grid’s near-term outlook hinges on the successful award of the new Service Contract in the Philippines and the completion of farmin agreements, which are critical to both operational progress and regulatory compliance. Concurrently, the resolution of the French legal appeal remains a key event to watch. Investors will be closely monitoring these developments as the company navigates the challenges of ASX suspension and seeks to re-establish its market presence.