Ascent Resources

Thursday, 20th September 2018 09:09 - by Rajan Dhall

Ascent Resources hit the market this morning with a very brief update, at first glance there is not too much to get excited about, here are the highlight:

·      Record production volumes and income generated from Phase 1 of the Petišovci project.

·      Company close to breakeven EBITDA for the period. (six months ended 30 June 2018.)

·      GMP FirstEnergy engaged to run a Strategic Review incorporating a formal sale process.

·      The board looks forward to the outcome of the strategic review now drawing to a close

·      Based on representations from the Slovenian Authorities the board continues to expect the near-term award of the permits sought to develop its Petišovci asset.

Outlook

Petišovci remains a very attractive project in the longer run.  However, to reach the longer run we need to deal with the position as it is now.  We would also benefit from successfully diversifying into other projects.

Having articulated the need for a better funded partner to achieve these objectives we look forward to the outcome on the strategic review currently drawing to a close.

Technicals

Looking at the weekly chart it looks like the bearish trend may continue. With no new news in this RNS and little to get excited about its hard to see how investors will react in a positive light. I also am inclined to consider how much of this bad news is priced into the price. Nevertheless, we may hit all-time lows. 

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.