June 18, 2019 | 12:02 am
THE Philippine Department of Energy
(DoE) has rejected Gas2Grid Ltd.’s request to push back the start of drilling
operations on the Nuevo Malolos-1 Deepening to the end of July, the
Sydney-based oil and gas exploration company said on Monday.
In a disclosure to the Australian
Securities Exchange (ASX), Gas2Grid said it had requested the DoE to delay until
end of July the commencement of drilling operations due to force majeure.
“The DoE notice not approving the
extension to commence operations under Force Majeue will now impact on the
proposed capital raising,” the company said.
It also noted the DoE denied its
request in a letter dated May 17, but this was only received by the company on
June 14.
“The DoE also advised the company to
commence drilling operations in accord with the conditions of the two-year
extension which includes drilling Nuevo Malolos-1 Deepening by the 3rd
of July, 2019. Failure to comply risks termination of the service contract,”
Gas2Grid said.
The company said it will challenge
the DoE decision.
Gas2Grid said the company had to
defer the start of drilling operations after its expatriate drilling engineers
were unable to start work on the site due to the May 13 elections.
“In addition, local drilling crew
advised their preference to wait until after the election before determining
timing to commence site operations. The company therefore had no choice but to
defer commencing site work until end of July, 2019 and formally request the DoE
grant deferral of the start date under Force Majeure, provided for under
Service Contract (SC) 44,” Gas2Grid said.
Gas2Grid Ltd. is an Australian
company created in 2004 for domestic and international oil and gas exploration.
Its assets include a 750- square kilometer Petroleum SC 44, located onshore
Cebu Island in the Philippines which had been issued for a seven year period.
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