Last checked at 22 Jul 2013 07:00
22 July 2013
Ascent Resources plc.
("Ascent" or the "Company")
Disposal of Italian Subsidiary, Ascent Resources Italia s.r.l
Ascent Resources plc., the AIM listed European oil and gas exploration and production company, today announces that it has agreed to dispose of its 100% interest in Ascent Resources Italia s.r.l. ("ARI") to Global Power Sources s.r.l. ("GPS").
ARI contains the Company's Italian exploration assets; being its interests in the exploration permits in Frosinone, Fiume Arrone and Strangolagalli.
The sale and purchase agreement provides that, at closing, (i) GPS will pay Ascent €100,000 cash; (ii) Ascent will issue ARI with new ordinary shares of 0.1 pence each ("Ordinary Shares") to the value of €300,000 at the average market price of such Ordinary Shares over the last 15 days before the closing date; (iii) GPS will assume all future work commitments (estimated to be in the region of €7,300,000) and financial liabilities (consisting of a €700,000 bank loan) relating to ARI; and (iv) Ascent has written off a capital contribution to ARI of €600,000.
Furthermore, the sale and purchase agreement provides for Ascent to be granted a call option to buy back at least 51% participation, at cost plus 5%, in any future discovery made by ARI. The option is priced at €100,000 (which will be netted off against the €100,000 receivable by Ascent from GPS) and also provides for Ascent to acquire any other assets in the energy business developed and deployed by GPS including, but not limited to, on-site gas-to-power, hydroelectric, mini-wind farms, photovoltaic and waste-to-energy plants. The call option has 48 months duration.
Len Reece, Ascent's Chief Executive Officer, commented: "This transaction is in accordance with our corporate strategy of disposing of non-core assets. It further reduces corporate overhead by a significant amount and allows Ascent to focus its efforts and resources on its core Petišovci project in Slovenia, while retaining possible future upside in the global energy sector."
Enquiries:
Ascent Resources plc.
Clive Carver
Tel: +44 (0)20 7251 4905
Ascent Resources plc.
Leonard Reece
Tel: +44 (0)20 7251 4905
finnCap (Nominated Adviser and Broker)
Matt Goode / Charlotte Stranner
Tel: +44 (0) 20 7220 0500