Global Energy Ventures Ltd (ASX:GEV) has a number of upcoming catalysts this month and in the second half of the year as it pursues a global Compressed Natural Gas (CNG) strategy.
Significantly, this month the company will finalise two shipyard construction contracts for the CNG Optimum 200 Ship, a key component of its natural gas marine transport solution.
GEV’s executive director, corporate & finance Martin Carolan outlined the strategy and catalysts to investors at this week’s Proactive CEO Sessions in Sydney and Melbourne.
The transport solution is one of four CNG projects the company’s development team is pursuing, with others being stranded gas fields, oil fields with associated gas and remote small-scale power generation.
Carolan told the gatherings that the Optimum 200 ship was the only ‘construction ready’ marine CNG vessel globally.
Selection of the two construction contracts was a significant step, he said, which would provide the company with capital costs and a construction schedule.
This would enable GEV to articulate project capital cost assumptions and determine targeted equity IRR returns.
Second half catalysts
In the second half of 2019 the company is planning to:
- Articulate project economics that support 15 to 20-year bankable free cash flows for a CNG project;
- Target a maiden heads of agreement (HOA) for gas supply agreement to match the HOA in place for CNG gas offtake;
- Progress discussions on commercialisation of stranded gas assets in South East Asia using CNG;
- Identify maiden offshore associated gas CNG project in regions including PNG, Brazil and Africa; and
- Progress priority projects towards a FID-ready decision.
During the March quarter GEV raised additional working capital through a placement of new shares and appointed two new executives to the group to round out its board and management team with expertise in corporate finance as well as the identification of gas assets globally.
At March 31 the company held $3.67 million in cash at the end of quarter, excluding $210,000 to be raised from director participation in the February placement.
In the Middle East, the company continues discussions with gas suppliers to deliver into the Indian west coast market where GEV has a HOA for 200MMscf/d gas offtake.
The company is also scoping additional markets within a shipping distance of less than 2,500 kilometres.
In PNG, GEV continues dialogue with Twinza Oil on the Pasca A offshore development post-delivery of a positive PFS for a marine CNG export solution taking gas to markets such as the east coast of Australia and domestic PNG.
Also, in the UK, GEV continues to fund ongoing activities and resources for Meridian as consideration for an extension of GEV’s agreements with Meridian to February 21, 2020.
The company has also presented various proposals to either acquire equity gas supply or gas supply from stranded fields in the South East Asian region.