Eneabba Gas Limited (ASX: ENB) is an oil and gas exploration company based in Perth, Australia. ENB has its two energy projects located in the North Perth Basin, Australia focussing on cost-effective development of onshore gas.
The company has proposed for 168MW Centauri-1 Power Station over which it has secured all the necessary approvals to construct and operate including the power generation license and the environmental approval.
ENB also holds 100% interest in the Ocean Hill project which is under a farm-out arrangement with Finder Exploration and owns 50% interest in the Exploration Permit 447 over the project.
On 25 January 2019, ENB had announced the quarterly updates and the cash flow reports for its second quarter of FY19 ending on 31 December 2018.
During 3Q18, ENB entered into a binding heads of agreement with Domingo Lithium Pty Ltd. (Domingo), a utility company engaged in power generation, to acquire all its securities. Domingo had three permits in application status of which two permits are in Argentina and one in Western Australia whereas one granted permit in New South Wales. During 2Q19, progress was made, but the permits remained in an ungranted status.
In its Annual General Meeting (AGM) held on 19 November 2018, the boards passed the resolution for the 10% placement facility and on 10 December 2018, the company requested to suspend its securities from trading due to the proposed capital raising until it has completed the capital raising and recompiled with Chapters 1 & 2 of the listing rules.
During the quarter, ENB reported net cash used in operating activities of A$0.285 million (as compared to the guidance of A$0.075 million as per 30 October 2018 report) arising from the payments of corporate development of A$20 K, staff costs of A$97 K, and administration and corporate costs of A$168 K. For the first half of FY19, it reported net cash used in operating activities of A$0.327 million. For the next quarter, ENB estimates a net cash outflow of A$0.075 million.
ENB did not have any cash flow from its investing activities during 2Q19, but it purchased property, plant, and equipment worth A$0.325 million in 1Q19 summing to total cash used in investing activities of A$0.325 million in 1H19. ENB did not report any cash flow from its financing activities during 2Q19 as well as 1H19.
The effect of movement in exchange rates on cash held was also nil for 2Q19 and 1H19. It reported a bank balance of A$9 K and call deposits of A$163 K summing to the cash balance of A$0.172 million at the end of the period, i.e., 31 December 2018 which was A$0.457 million in the first quarter.
Eneabba Gas Limited’s stock has generated a negative return of 37.50% during the past six months. It last traded at A$0.005 (as on 6 December 2018). ENB has 524.13 million shares outstanding with a market cap of circa A$2.621 million. ENB’s 52-week high and low are marked at A$0.019 and A$0.003 respectively.
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