Colin Hutchinson, CEO of Ascent Resources, held a conference call with over 100 private investors yesterday to update them on progress. The majority of questions were on the strategic review and the mood was generally positive.
The Strategic Review could result in a partner joining AST to progress the development of the Petisovci gas field in Slovenia.
The review began in April and attracted considerable attention, with 20 companies expressing interest. 'A handful of companies are still in, with some more serious than others having done more due diligence. We can still see a successful outcome.' explained Colin Hutchinson.
Permitting for a gas plant next to the Petisovci gas field, a later phase of development, has been considerably delayed and ARSO, the Slovenian Environmental Agency have asked for further amendments. 'Our response will be delivered in early September and we hope to have the permit in place by the end of September. Lack of a permit has certainly put a number of players off, but others have taken a longer term perspective' said Colin.
'In terms of increasing output from PG10 and 11A, there are things to do before re-stimulation. There are ways to reduce the amount of water, and this would require a well intervention, something which a new cash partner might well take on. Its certainly possible to isolate the water, shut it off and to get dry gas flowing'.
That said, PG10 would be the first candidate for restimulation, although its not clear when the required permit will be granted by ARSO.