Global Energy Ventures Ltd (ASX:GEV) further developed its global Compressed Natural Gas (CNG) strategy during the March quarter in parallel with its CNG Optimum ship yard selection process, finalising ship technical specifications, construction and scheduling plans.
The company also 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.
Global Energy Ventures held $3.67 million in cash at the end of quarter, excluding $210,000 to be raised from the director participation in the February placement.
GEV chairman and CEO Maurice Brand said: “The combination of our successful design, test and now full technical specification documentation for the Optimum 200 ship establishes GEV as the only ‘construction ready’ marine CNG vessel globally.
"This also provides a new marine class to service the growth in regional gas markets that include the Middle East, Central Asia, South East Asia, West Africa, Americas and Europe.
“The completion of our design, test construction cost and schedule and follow-on confirmation of our selected ship yards is already having a material impact in the discussions we are holding with either gas supply or offtake parties.
“I am also delighted with the success of our capital raising completed in early February in a challenging equity market that was supported by a number of existing institutional and sophisticated shareholders including all of the GEV directors.”
Brand added: "I also welcome the new shareholders from the capital raising.
"Finally, the new executive and board appointments now secures all the requisite resources and expertise to deliver on the workstreams to take this company to an FID ready project.”
In the Middle East, the company continued discussions with gas suppliers to deliver into the Indian west coast markert where GEV has a heads of agreement for 200MMscf/d gas offtake.
The company is also now scoping two additional markets within a shipping distance of less than 2,500 kilometres and appointed gas advisors are now reviewing gas supply options out of Oman, UAE and Qatar.
In PNG, GEV continued dialogue with Twinza Oil on the Pasca A offshore development post-delivery of a positive pre-feasibility study for a marine CNG export solution taking gas to markets such as the east coat of Australia and domestic PNG.
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, and in South East Asia presented various proposals to either acquire equity gas supply or gas supply from stranded fields in the region.