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(Alliance News) - Ascent Resources said it is pressing forward "on all fronts" as it updated on its operations in Slovenia, and it is continuing to manage its cost base as it progresses an arbitration claim.
Ascent said it and its partner, Geoenergo, have signed a two-year extension to a gas sales agreement allowing gas from the Petisovci field to be transported to the INA processing facility at Molve in Croatia.
Along with its joint venture partners in Slovenia, the company is exploring other opportunities to increase production from existing and potential new reserves within the field.
"Based upon recent reinterpretation of the newly reprocessed Petisovci 3D seismic survey, several shallow conventional drilling opportunities have been identified which require no stimulation. The partners look forward to progressing these opportunities in 2020," said Ascent.
Average monthly production from July to November for the two existing wells was 7.1 million cubic feet.
Meanwhile, the company is still waiting on a ruling on an appeal against the decision of the Slovenian Environment Ministry to "force" the joint venture partners to carry out an "unnecessary" environmental impact assessment for well stimulation work at the Petisovci project in Slovenia.
The appeal was submitted in July, but there is no certainty over when the Administrative Court will reach its decision, Ascent said.
As previously announced, the company is progressing an arbitration claim for "the significant damages incurred as a direct result of the manifestly wrong actions" of the Slovenian authorities. Ascent said it continues to have positive discussions with parties interested in providing non-recourse litigation funding to advance this claim.
"The company continues to manage its cost base while it seeks redress and to monitor its on-going working capital needs," Ascent said.
Chief Executive John Buggenhagen said: "We continue to press forward on all fronts to preserve and diversify the value of Ascent. Our focus on preserving the significant value of the Company's investment in Slovenia remains management's top priority with a focus on new potential drilling opportunities in the coming year as well as continuing to move forward with efforts to initiate an arbitration claim for damages."
"I understand shareholder's frustrations at the time this is taking, but it is important to make sure that the company follows the process before us with a diligent and considered approach. The strategy we set out in August remains our focus and I am hopeful we can start to deliver results in the coming year," said Buggenhagen.
Shares in Ascent were down 6.3% at 0.089 pence in London on Tuesday.
By Lucy Heming; lucyheming@alliancenews.com
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