- Gas2Grid (GGX) has seen its share price rally after revealing the French Government is yet to submit its defence against the company’s claim for €34.35 million (about A$54 million) in compensation
- The oil and gas explorer is seeking damages in relation to a saga that dates back to 2013, when the government refused to renew the St Griede conventional hydrocarbon exploration permit
- The Pau Tribunal had allowed until January 2, 2021, for a defence submission but on Monday decided to set the date for February 15, 2021
- The timeline for any determination on the claim is still uncertain but GGX shares still rallied once the news became public
- Gas2Grid finished Tuesday’s session 66.7 per cent higher at 0.5 cents
Gas2Grid (GGX) has seen its share price rally after investors were told the French Government is yet to submit its defence against the company’s claim for €34.35 million (A$54 million) in compensation.
The oil and gas explorer is seeking damages in relation to refusal of the government to renew the St Griede conventional hydrocarbon exploration permit.
In 2013, after completing all conditions during an initial 5-year term, Gas2Grid applied for a 5-year renewal of the permit in the Aquitaine Basin.
However, in September 2015, the French government decided not to grant the renewal but this decision was later overturned by the Pau Tribunal in November 2016.
The tribunal ruled that the renewal should be granted and ordered the government to pay €414,400 (A$626,550) in costs and penalties.
In January 2017, the government lodged its own appeal in the Appeal Court of Bordeaux. However, before the appeal court had made a decision, the government granted a 5-month renewal to the St Griede permit.
The appeal court finally handed down its decision later in March 2019, annulling the Pau Tribunal’s November 2016 ruling that instructed Gas2Grid be granted a 5-year renewal.
In January 2020, Gas2Grid went back to the Pau Tribunal with its claim for damages against the French government for its refusal to renew the permit.
The Pau Tribunal had allowed until January 2, 2021 for a defence submission but no defence claim was submitted before the deadline.
On Monday, the tribunal decided to set the date for the closing for the instruction of the tribunal to February 15, 2021.
Despite the additional time granted, the timeline for any determination on the claim is still uncertain.
GGX shares finished Tueday’s session 66.7 per cent higher at 0.5 cents.