LONDON (Alliance News) - Ascent Resources PLC Friday said it agrees that its valuation has increased significantly since Cadogan Petroleum PLC made a preliminary approach about combining the two London-listed firms, stating it understands why Cadogan pulled the plug on the deal.
Cadogan revealed late Thursday it would not be making an offer for Ascent because Ascent's share price had soared since it made its approach earlier this month.
Ascent Resources shares closed at only 0.93 pence per share on March 23, the last trading day before Cadogan made its approach, and closed down 12% on Thursday to 6.20 pence per share - meaning Ascent's share price, and therefore valuation, is 6.5 times higher than it was before Cadogan made its approach.
On Friday, Ascent said it agreed that the value of the company is now "considerably in excess of that contained in the preliminary approach received from Cadogan."
As a result, Ascent is no longer under an offer period, and although it has made its intention clear, Cadogan still has the right to make an offer for Ascent within the next six months.
Ascent also said Friday that it still awaiting to be awarded the required permit for its Petisovci asset in Slovenia, but said it expects this to be secured during the scond quarter of 2016.
Ascent had previously said it was expecting production from the field to begin in the third quarter of 2016, but Friday said it now "remains confident" that first gas can be achieved "during 2016".
Ascent has also appointed Stockdale Securities Ltd as its new nominated adviser and broker with immediate effect.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Ascent Resources (AST)
Cadogan (CAD)