MEC Resources ended the September quarter with $1.275 million in cash and reported an estimated 11.9 quarters of funding at its current operating cash burn. But its key Advent Energy investment faces a live Federal Court appeal over PEP11, while an onshore subsidiary holding the Weaber Gas Field remains in voluntary administration.
- $1.275 million cash balance at 30 September
- $108.7k quarterly cash outflow and 11.9 quarters of estimated funding
- Advent subsidiary appeals Federal Court dismissal over PEP11 applications
- Onshore Energy remains in voluntary administration with its future uncertain
- Clean hydrogen projects remain at funding, engagement and development stages
Cash position remains stable despite limited activity
MEC Resources Ltd (ASX:MMR) finished the September quarter with $1.275 million in cash after a net cash outflow of $108.7k. Operating activities consumed $107.2k, while investing activities used a further $1.5k; the company recorded no financing inflows during the period.
On the figures reported in its Appendix 4C, MEC estimates it has 11.9 quarters of funding available at the current operating cash burn. That is a runway calculation rather than a forecast of future expenditure or income, and it does not resolve the value or timing of returns from MEC’s portfolio. Directors’ fees accounted for $39.2k of the quarter’s related-party payments.
PEP11 appeal keeps permit dispute alive
The most consequential development sits inside MEC’s 37.95% investment in Advent Energy. Advent’s wholly owned subsidiary Asset Energy, the operator of the PEP11 joint venture, lodged an appeal with the Full Court of the Federal Court on 14 July against the June dismissal of its judicial review application. The appeal follows the PEP11 appeal decision, which earlier coverage identified as being led by Asset Energy rather than MEC itself.
The original Federal Court decision left the Commonwealth-New South Wales Offshore Petroleum Joint Authority’s refusal of applications to vary, suspend and extend the permit standing. Justice Jackson found that Asset had been denied procedural fairness over undisclosed well costings, but ruled the error was not material because the public interest ground independently supported the refusal. The Court also held that parliamentary privilege prevented a challenge to the truth of statements made in the NSW Parliament.
The appeal’s hearing and determination date remains with the Full Court. Separately, Advent has an application before the National Offshore Petroleum Titles Administrator to renew a permit covering 50% of the existing PEP11 area. The filing gives no indication of when NOPTA will decide that application.
Weaber Gas Field asset remains under administration
Advent’s onshore subsidiary Onshore Energy was placed into voluntary administration on 10 April after delays and changes in government action, the regulatory framework and Aboriginal Heritage claims adversely affected its Northern Australian operations. The administrator is assessing the company’s assets and liabilities, with a deed of company arrangement or a winding-up recommendation among the possible outcomes.
Onshore’s primary asset is Retention Licence 1, which contains the Weaber Gas Field. MEC cautions that there is no assurance the licence will be developed or that Onshore will continue as a going concern. The filing does not quantify the potential financial effect on MEC or Advent, leaving the administration as a material unresolved risk around the value of the investment.
Hydrogen projects remain commercially unproven
Advent also reported progress at Clean Hydrogen Technologies Corporation, which has demonstrated pilot-plant production of turquoise hydrogen and a carbon nanotube composite in Nashik, India. CHT is now working on product applications, including battery storage and cement impregnation, but those engagements remain at the memorandum-of-understanding stage.
CHT has also signed a letter of intent with Horizon Fuel Cells concerning clean hydrogen supply for US data-centre electricity projects, while a Singapore initiative has received support from an electricity generation company. The proposed developments require project-level funding, and CHT is pursuing funding support ahead of a proposed Nasdaq SPAC transaction. None of those initiatives is presented as a completed commercial project.
Bottom Line?
MEC has cash to pursue its current course, but the investment case now turns more on legal and administration outcomes than quarterly spending.
Questions in the middle?
- Will the Full Court accept Advent’s appeal and alter the status of the refused PEP11 applications?
- What recommendation will the Onshore Energy administrator make for the Weaber Gas Field asset?
- Can CHT secure project funding and move its hydrogen and carbon nanotube engagements beyond the MOU and LOI stages?