Gas2Grid to Ask DOE to Declare Malolos in SC44 a Commercial Oil Field
Australia-listed Gas2 Grid Limited provided Thursday an update on company's non-renounceable rights issue and its operations at the Malolos oil field in Service Contract (SC 44) in Cebu, the Philippines.
Gas2Grid Non-Renounceable Rights Issue – Discontinued
On April 2, Gas2Grid Limited launched a 1 for 4 non-renounceable rights issue (Rights Issue) to raise approximately $4,723,340 or AUD 5,102,175 (before transaction costs).
Under the Rights Issue, eligible shareholders with registered addresses in Australia and New Zealand were able to apply for 1 new share for every 4 shares held at 7pm (NST) April 11. The issue price was to be $0.028 (AUD 0.03) per new share. For every new share issued, the applicant was to receive one new option for no additional consideration.
Since the launch of the Rights Issue the shares of Gas2Grid Limited have traded at or below the offer price and there are a low number of acceptances received to date.
In light of those circumstances, the Company has decided that it will not proceed with the previously announced Rights Issue with immediate effect and will return any application moneys received to date.
Alternative sources of funding are being considered by the Company including borrowings from Directors and others, farm out of interests in Service Contract 44 and equity issues at a later time in the next financial year.
Malolos Oil Field
The results and observations from the current production flow test at the Malolos Oil Field have been positive. The Malolos-1 well has again demonstrated that it can produce approximately 200 barrels of oil per day. But the oil flow during the test was impaired when the perforations within the wellbore at the sandstone reservoirs were blocked. Over the last couple of days the perforations have been subject to a cleaning process by the use of high-pressure water jets. The well will now be tested for fluid influx by swabbing. If the current remedial work does not result in improved productivity the Company will make a decision on future operations, which might include suspension of test operations whilst various alternatives are considered to exploit the proven oil reservoirs.
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