MEC Resources has bolstered its stake in Advent Energy with a $1.55 million loan while navigating a pivotal Federal Court hearing on the PEP 11 Joint Venture. Meanwhile, progress on Clean Hydrogen Technology signals potential growth avenues.
- Additional $1.55 million loan advanced to Advent Energy Ltd
- PEP 11 Joint Venture faces Federal Court judicial review in February 2026
- New MMRO options issued following expiry to maintain shareholder participation
- Clean Hydrogen Technology progressing towards production facilities in India and USA
- MEC maintains compliance with Pooled Development Funds Act and holds $1.18 million cash
Corporate and Financial Highlights
MEC Resources Ltd (ASX, MMR) has released its quarterly report for the period ending 31 December 2025, detailing significant corporate and operational developments. The company successfully passed all resolutions at its 2025 Annual General Meeting held in November, reinforcing shareholder support for its strategic direction.
Financially, MEC advanced a total of $1.55 million to Advent Energy Ltd, its 37.95% owned investee, in the form of a loan bearing 5.1% interest over 24 months. This loan is part of a previously announced entitlement offer aimed at deepening MEC’s exposure to promising energy exploration ventures.
PEP 11 Joint Venture Legal Challenge
Advent Energy’s subsidiary, Asset Energy Pty Ltd, holds an 85% interest in the PEP 11 Joint Venture alongside Bounty Oil and Gas NL. The joint venture recently encountered a regulatory setback when the National Offshore Petroleum Titles Administrator refused two joint authority applications related to PEP 11. Advent has sought judicial review of this decision, with a Federal Court hearing scheduled for 20 and 23 February 2026.
This legal process is critical, as the outcome will influence the future of the PEP 11 project and, by extension, MEC’s investment. Despite the dispute, the joint venture remains compliant with contractual and regulatory obligations, maintaining operational continuity for now.
Options Expiry and Shareholder Engagement
The company also navigated the expiry of 373.5 million MMRO options exercisable at $0.03. To sustain shareholder engagement and capital flexibility, MEC issued new options on a one-for-one basis to existing holders, including directors David Breeze and Peter Richards. This move aims to preserve investor participation in the company’s ongoing development.
Progress in Clean Hydrogen Technology
On the innovation front, Clean Hydrogen Technology (CHT), a key project within MEC’s portfolio, has advanced its engineering and catalyst capabilities. Its pilot plant in India has demonstrated consistent production of turquoise hydrogen and carbon composites with zero CO2 emissions. Plans are underway to construct production facilities in Maharashtra, India, and Louisiana, USA, targeting industrial markets with growing demand for clean energy solutions.
CHT is currently finalising engineering certifications required for operations in both countries and is seeking approximately US$2.5 million in funding to commence production. This initiative aligns with global energy transition trends and could become a significant revenue stream for MEC.
Financial Position and Outlook
MEC ended the quarter with $1.18 million in cash, reflecting prudent financial management amid ongoing investments and operational costs. The company remains compliant with the Pooled Development Funds Act, maintaining its mandate to invest in early-stage exploration entities within the energy and mineral sectors.
Looking ahead, MEC’s focus will be on the outcome of the PEP 11 judicial review, securing funding for CHT’s production facilities, and exploring new opportunities within its investment mandate. The company’s board, including directors with direct involvement in Advent, continues to monitor developments closely.
Bottom Line?
With pivotal legal and funding milestones ahead, MEC Resources stands at a crossroads that could define its role in Australia’s evolving energy landscape.
Questions in the middle?
- What will be the Federal Court’s ruling on the PEP 11 Joint Venture applications, and how will it impact MEC’s investment?
- How soon can Clean Hydrogen Technology secure funding and commence commercial production in India and the USA?
- What level of shareholder uptake will the new MMRO options achieve, and how might this affect MEC’s capital structure?