Three strikes: French oil and gas ban hits Gas2Grid
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Oil and gas minnow Gas2Grid has been rejected a third time by the French government.
The company (ASX:GGX) told investors a permit application covering 3172 sq km of exploration tenure in the Aquitaine Basin in southern France had been knocked back under a new law.
In December France passed a law banning all exploration and production of oil and gas by 2040. This means existing drilling permits will not be renewed and no new exploration licences will be granted.
The move is a world first. But France mostly imports its oil and gas — just 1 per cent is produced domestically.
Gas2Grid has had three permit applications in the Aquitaine Basin rejected under the new law.
The company, which has an existing permit in France that expires at the end of May this year and a permit in the Philippines, has two months to appeal the decision.
Gas2Grid had just $13,000 in cash at the end of the December quarter, but has since raised a further $500,000 from existing shareholders and new investors.
The share price was unchanged in Wednesday morning trade.
Stockhead is seeking comment from Gas2Grid.