ASX Delisting Looms as Gas2Grid Battles for Survival with Philippine Assets
Gas2Grid Limited is on the cusp of securing three key service contracts in the Philippines, aiming to revive its exploration activities despite looming ASX delisting. Meanwhile, its legal battle in France continues to unfold.
- Near-finalisation of 100% interest in new Philippine service contract
- Two farmin agreements pending for additional Philippine contracts
- Plans to hold assets in Max-E Limited for equity raising and potential ASX listing
- Ongoing legal appeal against French government over contract non-renewal
- ASX suspension persists with delisting expected by September 2025
Philippine Expansion on the Horizon
Gas2Grid Limited is nearing a significant milestone with the anticipated award of a 100% interest in a new service contract covering much of its former exploration area in central Cebu, Philippines. This contract, awaiting presidential signature, would grant a seven-year term to continue appraisal and exploration, leveraging the company's prior $25 million investment in the region.
In addition, Gas2Grid is close to executing two farmin agreements to acquire majority stakes, 50% and 60% respectively, in two existing service contracts onshore in the Philippines. These agreements, once formalised, will enable the company to deploy its drilling rigs, currently in need of servicing, to advance planned gas and oil appraisal wells.
Strategic Structuring and Funding Plans
The company intends to consolidate these interests within a wholly owned subsidiary, Max-E Limited. This entity is envisioned as the vehicle for raising equity capital to fund exploration activities. Subject to shareholder approval, Gas2Grid plans to distribute a substantial portion of Max-E Limited shares in specie to existing shareholders, allowing direct participation in the subsidiary’s equity. While this offers a pathway to revitalise operations, the success of such equity raises and potential ASX listing for Max-E Limited remains uncertain.
Legal Proceedings in France
Parallel to its Philippine ambitions, Gas2Grid continues its legal challenge against the French government over the non-renewal of its St. Griede contract in the Aquitaine Basin. The company lodged an appeal in April 2024 seeking €34.35 million in damages. Recent court submissions have extended the timeline for a ruling to August 2025, with the outcome still pending and outside the company’s control.
ASX Suspension and Delisting Risk
Since September 2023, Gas2Grid’s securities have been suspended from ASX quotation due to insufficient operational activity, with a critical deadline looming on 1 September 2025. Despite progress towards acquiring new contracts, the company acknowledges it is unlikely to meet ASX’s requirements for reinstatement before this date. Consequently, delisting appears imminent unless significant operational milestones are achieved swiftly.
Financially, the company reported a modest net cash outflow from operations this quarter and holds unsecured loans from related parties and others. With available funding exceeding $3.3 million and low current expenditure, Gas2Grid has a runway for exploration activities, albeit contingent on successful capital raises and contract awards.
Bottom Line?
Gas2Grid’s near-term future hinges on finalising Philippine deals and navigating ASX’s delisting deadline, with Max-E Limited’s equity raise poised as a critical next step.
Questions in the middle?
- Will Gas2Grid secure presidential approval and formalise farmin agreements in the coming weeks?
- Can Max-E Limited successfully raise equity and achieve an ASX listing to sustain exploration?
- What impact will the French court’s ruling have on the company’s financial position and strategy?
