Ascent Resources Regulatory News (AST)

Ascent Resources plc

Final Results for the Year ended 31 December 2011

Operational Highlights

·; Petišovci ready to start production

·; Gas-in-place estimates 22% up at 504 Bcf

·; Independent report confirms Petišovci's potential

·; Total facility of 15 million Euro signed with BNP Paribas, expected to be sufficient to fund Slovenian CAPEX to production

Financial Highlights

·; Revenue £2.1 million (2010: £1.8 million)

·; Operating loss £5.7 million (2010: £5 million)

·; Basic & diluted loss per share 0.68p (2010: 1.18p)

Commenting on the results, Ascent Chairman John Kenny said:

"2011 was very much a year of solid progress for Ascent and I am pleased with the milestones achieved in bringing Petišovci nearer to production. We have much to achieve in 2012, not least the ambition for a significant upwards shift in production and resulting revenue generation which I expect once Petišovci starts producing. The recently announced signing of a €15m facility with BNP Paribas has been a huge achievement, one which we have been working towards for some time. It should provide us with enough capital in Slovenia to reach production, our key near-term milestone as a Group. We worked hard for a solution that minimised dilution on shareholders and should maximise your return. I think this is an excellent result which also provides third party validation of the potential we have with Petišovci. "

Enquiries:

Notes

Ascent Resources plc has a diversified portfolio of hydrocarbon exploration and development interests across five countries in Europe: Italy, Switzerland, Hungary, Slovenia and Netherlands. Its portfolio contains a solid base of field redevelopment projects with selected exposure to exploration upside. The portfolio is focussed on gas and, with the exception of the shallow water Netherlands project, all of its projects are located onshore where operating and development costs are substantially lower than they would be offshore.

Ascent Resources full Annual Report is available from the Company's website www.ascentresources.co.uk

Chairman's Statement

I am pleased to report that 2011 saw Ascent make progress towards achieving its targeted step change in production and revenues and I remain confident that this will deliver the strategic aim of creating value for shareholders.

Ascent's strategy is to build and progress a portfolio of principally onshore European hydrocarbon assets at various stages of the development cycle including production, development and exploration projects. The Company's focus is Europe where local gas market dynamics and prices are seen as remaining favourable for the foreseeable future. During 2011 priority was given to those assets located in proven but undeveloped plays where the application of advanced technologies has the potential to transform projects previously considered to be uncommercial into profitable enterprises. This strategy has the potential to deliver considerable returns for investors at acceptable levels of exploration and execution risk. Today, Ascent has a European-based portfolio that meets the Company's strict investment criteria including: ongoing production in Hungary, a substantially de-risked near-term production project in Slovenia and earlier stage redevelopment/exploration opportunities in Switzerland, Italy and the Netherlands.

Much of our energies and focus during the year have been centred on the Slovenian part of our late stage Petišovci/Lovászi tight gas project. Slovenia is a country dependent on imported gas with negligible domestic production. In 2010, 47% of its gas was supplied by Russia, 33% came from Algeria, 15% from Austria and 5% from Italy. Petišovci is a largely undeveloped gas field that has previously produced gas. This places the project at the lower end of the exploration risk spectrum and thereby satisfies one of our key investment requirements. Modern drilling techniques such as hydraulic fracture stimulation can be applied to enhance recovery and flow rates and help to make Petišovci commercially viable. At the time of last year's report, the project had an independently verified P50 gas-in-place estimate for the entire project of 412 Bcf. (11.7 Bm3; 68.7 MMboe). The challenge we set ourselves for 2011 was to learn more about the geology of Petišovci through drilling that, subject to satisfactory results, would lead to an increase in resources and enable us to draw up a detailed plan of action to optimise the commercial recovery of hydrocarbons from the field. In addition, whilst ambitious, we were hoping to be in a position to commence production by the end of the year.

Over the course of 2011 we worked hard and made substantial progress in the project despite technical setbacks and an asset that proved more complex than expected. We have answered many of the key questions surrounding the gas field, specifically regarding potentially recoverable gas volumes and flow rates which have proved up the commercial potential. We drilled three wells at Petišovci during the year. We also carried out hydraulic fracture stimulation treatments on two of these wells to test gas flow rates and the results from both were positive. Subject to the construction of pipeline connections to link the producing wells in the project to the national pipeline network, a carbon dioxide ('CO2') removal plant and other ancillary equipment, Petišovci is now ready to commence production. It had originally been hoped that production would come on stream by the end of 2011, but this target date had to be extended into 2012 as significantly more work was needed than had first been envisaged to achieve the required commercial flow rates.

The work programme confirmed the commercial viability of the project and the three wells drilled resulted in RPS Energy Group plc ('RPS'), an independent consultant, significantly increasing gas-in-place estimates to 504 Bcf, a 22% increase on their previous figure.

The large amount of data we have acquired has greatly added to our understanding of the geology at Petišovci which provides scope for upgrades in the future, subject to further exploratory work being carried out. We commissioned Petroleum Development Consultants ('PDC') to produce a detailed study of the expected commercial potential of the Petišovci project, which includes analysis of local supply and demand for gas, evaluation of the transport network and infrastructure, pricing, production and development expectations. PDC's report supports our belief that Petišovci will prove to be a highly profitable investment for our shareholders. So, armed with this and the results of our work programme, our immediate priority is to start producing gas at the site later in 2012.

Going forward we believe that production at the field will come in two phases. The first will be using the existing infrastructure and a new CO2 removal plant that we plan to build in 2012. This should enable us to produce up to 7 MMscfd of gas. In the second phase we plan a full scale field development with between 30 and 40 more wells being drilled over the next decade. The cash flow projections remain strong which provides me with the comfort that we have every opportunity to deliver value to shareholders.

The main task in hand is moving Petišovci into production but our earlier stage assets will play an increasingly key role in Ascent's portfolio as we look to further build the Company's reserves and production levels. These assets therefore hold considerable latent value which we intend to realise fully in the years ahead.

During 2011, activity on our earlier stage assets in Switzerland, Italy and the Netherlands was limited and centred on securing the appropriate permits and licence extensions. In Switzerland, drilling and wellsite construction permits have now been received by the operator eCORP European International Ltd ('eCORP') and in the Netherlands a licence extension has been granted.

The Swiss project is an example of how we look to take out as much risk as possible from oil and gas exploration and production. An oil and gas discovery was made on the licence area in 1982, but this was unexploited due to the low prevailing price of gas at that time as well as a lack of pipeline infrastructure. We de-risked this project following the sale of our 90% interest to eCORP in April 2010 for €8 million, whilst retaining a 45% back-in right on any success with three conventional appraisal prospects and a 22.5% back-in right for a further three secondary conventional prospects for apportioned cost.

Whilst our development and exploration assets rightly take up the lion's share of this report our 48.78% held producing asset, the Penészlek project in Hungary, continues to generate revenues, albeit on a small and declining trend. The field has been producing for over 3 years and another sidetrack well, PEN-105A, has recently been successfully drilled to provide a boost to production and bring gross revenues generated to the joint venture back up to around €300,000 per month. The initial decline in production is in line with our expectations and previous announcements. The field will, over the next couple of years, become fully depleted but the lost output will be more than offset by production at Petišovci when this comes on stream.

During 2011, we acquired an additional 48.75% interest in the Petišovci Project from EnQuest PLC ('EnQuest'), increasing our stake to 75%. As a result of the deal, EnQuest became the largest shareholder in Ascent and currently holds a 15.69% interest in the Company. Following the transaction with EnQuest in February last year, Graham Cooper was appointed as a Non-executive Director. Graham is Head of Business Development at EnQuest, having previously been a Vice President of Global Exploration at Shell. As a trained geologist he brings valuable experience to the Board and his appointment underpins EnQuest's support of Ascent's management. EnQuest have and continue to be very supportive shareholders and provide us with access to their considerable technical expertise.

Whilst not without some disappointments, 2011 was very much a year of solid progress for Ascent and I am pleased with the milestones achieved in bringing a game-changing asset nearer to production. 2011 has laid the foundations for the Company but I recognise that we have much to achieve in 2012, not least the ambition for a significant upwards shift in production and resulting revenue generation which I expect once the late stage Petišovci project starts producing. The recently announced signing of a €15 million facility with BNP Paribas (Suisse) SA ("BNPP")  has been a huge achievement, one which we have been working towards for some time. It should provide us with enough capital in Slovenia to reach production, our key near-term milestone as a Group. We worked hard for a solution that minimised dilution on shareholders and should maximise your return. I think this is an excellent result which also provides third party validation of the potential we have with Petišovci. I would like to take this opportunity to thank all our employees for their dedication and efforts and also our shareholders for the patience they have shown over the last twelve months. Hydrocarbon exploration and development is not an exact science with timetables often having to be extended. Crucially though, key targets have been met at Petišovci and as a result we remain on course to generate value for our shareholders.

John Kenny

Chairman

29 May 2012

Operations Review

Petišovci/Lovászi Project, Slovenia and Hungary

The Petišovci/Lovászi Tight Gas Project is located in a 200 km2 area that straddles the Slovenian/Hungarian border. The project targets the development of substantial tight gas reservoirs that are known to be in Miocene clastic reservoirs.

The project area is divided more or less equally between the Hungarian and Slovene parts. In the Hungarian part Ascent has a 50:50 joint venture across an Area of Mutual Interest (AMI) with MOL, Hungary's preeminent oil and gas company. In Slovenia Ascent has a 75% interest in the joint venture and Geoenergo d.o.o. ('Geoenergo'), the concessionaire of the Petišovci Exploitation Concession, has a 25% interest. Geoenergo is a company jointly owned by Nafta Lendava d.o.o., the Slovenian state oil company, and Petrol d.d., Slovenia's leading energy trading enterprise.

In the project area, over which Ascent and its joint venture partners acquired 3-D seismic in 2009 and 2010, three structural highs are present. Each of these structures, Petišovci in Slovenia and Lovászi and Újfalu in Hungary, had previously produced oil and gas from the shallow conventional Pontian reservoirs; from the deeper Middle Miocene tight gas reservoirs, small quantities of gas have been produced from Petišovci and Lovászi.

Over the course of the year under review, most of the effort has been concentrated on the Slovenian part of the project. The drilling of the Pg-11 well, which was started in 2010, continued. It was the first deep well to be drilled in the project area for 22 years and it evaluated previously unproduced reservoirs that are deeper in the Middle Miocene section. The Pg-11A sidetrack of the Pg-11 well and the Pg-10 well were next drilled, completed and successfully fracture stimulated. The Pg-11A well is proven productive from the deeper 'K' sands, the Pg-10 well from the 'F' sands. The advances in hydraulic fracturing methodology in the last twenty years contributed to flow rates of over 8 MMscfd from the Pg-10 well, productivity more than three times greater than previously achieved. The fracture stimulation in three stages of the Pg-11A well resulted in a more modest flow rate of slightly above 2 MMscfd.

The well results obtained in 2011 led to an updated gas-in-place report by RPS, independent technical auditors. The RPS report increased gas-in-place with a P50 estimate of 464 Bcf and a mean of 552 Bcf for the Slovenian part of the project. The well results also confirmed the gas productivity, through an open-hole test, of the shallowest 'A' sands. The evaluation work included extensive coring and state-of-the-art electric-line log acquisition, the analysis of which has provided important new data that has been invaluable in planning the redevelopment of the reservoirs.

Leading on from the well results, a two phase redevelopment has been designed. This redevelopment plan takes into consideration the existing infrastructure as well as the expected productivity of gas in the longer term.

Phase 1: After the recompletion of Pg-10 and Pg-11A with custom designed production strings, it is planned that gas from these wells will be brought on-stream via dedicated well-site facilities, through the modified, existing, gas central processing plant ('CPP') and, from there, to the national gas pipeline terminal. Previously, gas produced from the Petišovci wells was processed at a local methanol plant but this is temporarily shut down. The modifications to the CPP are therefore required to upgrade the gas to the national pipeline specifications; these will reduce the CO2 content from approximately 3% to less than 1.5%, to remove the condensate in the gas for sale separately and to ensure dew point control by dehydration. The Phase 1 maximum production rate is set at 8,000 m3 per hour, approximately equal to 7 MMscfd. The recently announced €15 million facility provided by BNPP should enable Phase 1 to move ahead quickly and for production to commence later this year.

Phase 2: Once the medium term performance of the wells is established, a new 'greenfield' processing facility will be designed. It will perform the same function as the modified existing facility but will be of substantially higher capacity. Initial indications anticipate a 40,000 m3 per hour facility (34 MMscfd) which will then necessitate enlarged gas export capacity and modifications to the national grid connection. Over 30 new wells are expected to be required to maintain these flow rates for a period of over 10 years and to be able to maximise the recovery from the reservoirs. The Phase 2 facility is expected to take at least 30 months to design, permit, construct and commission and during this time, the first of the new wells will be drilled.

Hermrigen and Linden, Switzerland

The exploration permits cover undeveloped discoveries made by Elf Aquitaine in 1972 and 1982 with a combined estimated gas resource base of over 360 Bcf. As the original Hermrigen well was drilled before gas pipeline infrastructure was built in the area, the discovery has remained unappraised. eCORP is the operator of the project and, despite selling its interest in 2010, Ascent retains various back-in rights on any successful outcome of six conventional appraisal prospects, provided relevant apportioned costs are covered.

Slow progress on permitting has delayed the planned drilling operations but drilling and well site construction permits have now been received. Ascent looks forward to working with eCORP to ensure the appraisal well on this prospect is drilled as soon as possible.

Latina Valley Exploration and Redevelopment, Italy

The Strangolagalli concession lies in a proven oil producing area. The project involves the redevelopment of the Ripi field, originally developed in the late 1960s without the benefit of any seismic data. The oil is of good quality from shallow reservoirs less than 1,000 m deep. New seismic was acquired in 2010 and drilling based on the interpretation of the acquired data is planned. The drilling permit has yet to be issued.

As with Strangolagalli, the Frosinone exploration licence targets shallow oil lying at less than 1,000 m. New 2D seismic acquisition is planned to follow up on satellite reconnaissance that confirmed existing targets and identified new ones.

North Sea Block M10/M11, Netherlands

The M10/M11 blocks are located in the shallow waters off the north coast of the Netherlands in the southern North Sea. The licence area includes three structures, all of which contain gas discovery wells with gas present in the Slochteren unit of the Rotligendes sandstones.

A conceptual development plan has been prepared and a final appraisal well for the Terschelling Noord discovery, a structure that lies partly within the M10/M11 licence area and partly in the area to the south, is planned to confirm reservoir parameters for the detailed project design.

Ascent holds a 54% interest in the project along with its partners EBN B.V. with 40% and GTO Ltd with the remaining 6%. In September 2011, the Company received confirmation of an extension to the licence until 30 June 2013.

Producing Asset

Penészlek Gas Production Project, Hungary

Gas production continues from the PEN-101 well and the newly drilled PEN-105A sidetrack. Both the original PEN-105 and PEN-101 produced throughout 2011 with a cumulative production of 551 MMscf and 814 tonnes of condensate (15.6 Mm3; 97,500 boe) generating gross sales of €4,512,000. After Royalty payments, Ascent's net share was €1,463,000 or an average of €122,000 per month.

The production at Penészlek creates good cash flows as the operating costs are relatively low because of the automated production facilities. The produced hydrocarbons are sold via the Penészlek-Álmosd-Hosszúpályi pipeline. The PEN-105A sidetrack, drilled in March and April 2012, is the only well planned for the exploitation of the field in 2012. Results of the sidetrack, that was designed to drain gas reserves from the northern half of the PEN-105 structure that is bisected by a sealing fault, were better than expected and consequently production should continue into 2014. The original PEN-105 completion in the southern part of the structure has been abandoned. The commencement of production from PEN-105A and the subsequent increase in overall production will result in improved revenues over the coming months.

Summary of Group Net Oil and Gas Reserves

Net Gas Reserves and Gas Resources by country

(1) These figures are based upon Management evaluations of the Penészlek Mining Plot

(2) These figures are based on the RPS gas-in-place estimates with a management assumption of a 50% recovery factor

(3) These figures are based upon independent evaluations provided by:

(a) Tracs International

(b) ECL

(4) These figures are based upon Management evaluations of the gas-in-place in the M11-1 structure in the M11 licence area, the Terschelling Noord structure, both in the M10 licence area and the open acreage to the south of that area, and assuming a 50% recovery factor

Proven Reserves are those quantities of petroleum which can be estimated with reasonable certainty to be commercially recoverable, from known reservoirs and under current economic conditions, operating methods and government regulations. There is at least a 90% probability that the quantities actually recovered will equal or exceed the estimate.

Probable Reserves are those unproven reserves which are more likely than not to be recoverable. There is at least a 50% probability that the quantities actually recovered will equal or exceed the sum of estimated proven plus probable reserves.

Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. Contingent resources may include, for example, projects for which there are currently no viable markets or where commercial recovery is dependent on technology under development or where evaluation of the accumulation is insufficient to clearly assess commerciality.

Prospective Resources are those quantities of petroleum which are estimated to be potentially recoverable from undiscovered accumulations.

Consolidated Income Statement

for the year ended 31 December 2011

Consolidated Statement of Comprehensive Income

for the year ended 31 December 2011

Consolidated Statement of Changes in Equity

for the year ended 31 December 2011

Consolidated Statement of Financial Position

As at 31 December 2011

Consolidated Cash Flow Statement

for the year ended 31 December 2011

The financial statements were approved and authorised for issue by the Board of Directors on 29 May 2012 and were signed on its behalf by:

Scott Richardson Brown

Finance Director

29 May 2012

Notes

1. Basis of preparation

In publishing the Parent Company financial statements here together with the Group financial statements, the Company is taking advantage of the exemption in section 408 of the Companies Act 2006 not to present its individual income statement and related notes that form a part of these approved financial statements.

2. Going Concern

The financial statements of the Group are prepared on a going concern basis.

On 29 May 2012 the Group secured a €15 million facility from BNPP which is being made available to finance the primary capital expenditure requirements of the Group, being the Petišovci project in Slovenia, which should ensure first production in the next twelve months. 

Existing cash resources are sufficient to meet overheads for the next 3 months. In order to fund the work programmes for non-core assets and overheads for the required 12 month period further funds will be required. The Group has a SEDA facility in place which could bridge this gap; drawdowns on this facility are dependent upon both liquidity and the prevailing share price, however the Directors have no present intention to issue equity either directly or through the SEDA while the prevailing market price significantly undervalues the business.

Although it is not immediately pressing, the Directors are considering a number of non-equity financing options including but not limited to, further loans, farm-in agreements or asset sales. These options are currently under negotiation with various counterparties and on this basis the Directors are confident of the Group's ability to continue as a going concern.

However there can be no guarantee over the outcome of these negotiations and as a consequence there is a material uncertainty of the Group's ability to raise additional finance, which casts significant doubt on the Group's ability to continue as a going concern. Further, the Group may be unable to realise its assets and discharge its liabilities in the normal course of business.

The Directors however remain confident of the Group's ability to operate as a going concern given the funding discussions that have and continue to take place and in light of the significant recent support from BNPP.

3. Segmental Analysis

The Group has five reportable segments, as described below, which are based on the geographical area that the Group activities are carried out. Each area is then subdivided into a number of different sites based on the locations of the wells. The operations and day to day running of the business is carried out on a local level and therefore managed separately. In addition, each site has different technological requirements based on their stage of development which are coordinated based on their geographical location. Each operating segment reports to the UK head office who evaluate the segments performance, decide how to allocate resources and make other operating decisions such as the purchase of material capital assets and services. Internal reports are generated and submitted to the Group's MD for review on a monthly basis.

The operations of the Group as a whole are the exploration for, development and production of oil and gas reserves.

The five geographic reporting segments are made up as follows:

Italy - exploration and development

Hungary - production and exploration

Slovenia - exploration and development

Other Europe - exploration and development

(2011 the Netherlands, 2010 the Netherlands and Switzerland)

UK - head office

The costs of exploration and development works are carried out under shared licences with joint ventures and associated companies which are co-ordinated by the UK head office. Transfer prices between segments are set on an arm's length basis in a manner similar to transactions with third parties. Segment revenue, segment expense and segment results include transfers between segments. Those transfers are eliminated on consolidation.

Information regarding the results of each reportable segment is included below. Initial performance is measured by the results that arise from the exploration and development works carried out. Once producing, other production performance measures are based on the production revenues achieved. This is reported to the Group's MD by the level of capitalised exploration costs and the results from studies carried out at the individual locations of the wells. The MD uses these measures to evaluate project viability within each operating segment.

All revenue in the year derives from one customer.

4. Loss per share

The calculation of diluted earnings per share assumes conversion of all potentially dilutive ordinary shares. Dilutive shares arise from share options and the convertible loan notes held by the Company. A calculation is done to determine the number of shares that could have been acquired at fair value, based upon the monetary value of the subscription rights attached to outstanding share options, warrants and convertible bonds. Further details of the dilutive effect of potentially issuable shares are in Notes 5 and 30.

5. Exploration and decommissioning costs - Group

'Other Europe' includes the Netherlands (2009-2011) and Switzerland (until mid-2010).

For the purposes of impairment testing the intangible oil and gas assets are allocated to the Group's cash-generating units, which represent the lowest level within the Group at which the intangible oil and gas assets are measured for internal management purposes, which is not higher than the Group's operating segments as reported in Note 2.

The amounts for intangible exploration assets represent costs incurred on active exploration projects. These amounts are written off to the income statement as an impairment expense unless commercial reserves are established or the determination process is not completed and there are no indications of impairment. The outcome of ongoing exploration, and therefore whether the carrying value of intangible exploration assets will ultimately be recovered, is inherently uncertain.

During the year, Ascent entered into an agreement with EnQuest PLC ('EnQuest') to acquire their 48.75% interest in the Petišovci project in Slovenia. As per the terms of the Agreement, Ascent issued 150,903,958 new Ordinary Shares of 0.1p each in the Company to EnQuest. Additionally, at completion, Ascent granted a nil cost option over 29,686,000 new Ordinary Shares of 0.1p each in the Company to EnQuest. The cost of both the share issue and the grant of the nil cost option (£14,243,000 combined) have been treated as additions to Slovenian exploration costs in the period at Group level.

The impairment charge for the year in Hungary of £1,599,000 relates to the plugging of the PEN-104AA well at the Penészlek development, the write off of balances held in respect to the Pelsolaj exploration permit and an internal assessment as to the estimated financing risks and therefore the associated carrying value of other Hungarian projects.

The impairment charge for the prior year in Hungary of £1,231,000 related to the abandonment of the Bajcsa Gasfield redevelopment (£342,000) and the plugging and abandonment of the PEN-106 well at the Penészlek development (£889,000). Both impairments were due to no recoverable oil and gas reserves being found.

The impairment charge for the year for both Italy (£1,750,000) and other Europe (£122,000) relates to an internal assessment of the estimated carrying value of the Company's assets held in those countries.

The impairment charge in the prior year in Slovenia of £1,853,000 related to the abandonment of the Company's East Slovenian exploration project. No recoverable and oil gas reserves were found, so the carrying value of the asset was written off in full.

The impairment charge in the prior year in Italy of £14,000 related to the impairment of historic costs related to general seismic projects in Italy. These costs related to interests on which work is no longer being undertaken and were therefore written off.

The transfer in the prior year to tangible assets related to the PEN-101 and PEN-105 wells in Hungary. Both wells went on production in 2010 and were therefore transferred in accordance with Ascent's accounting policies.

6. Post balance sheet events

Penészlek Project

On 18 April 2012, PetroHungaria kft in which Ascent has a 48.78% interest completed the drilling of the PEN-105A sidetrack in the Penészlek Project in Eastern Hungary. The results of the well exceeded management expectations and were better than the original PEN - 105 well with approximately 20 m of gas-bearing formations drilled in the targeted Miocene volcaniclastic reservoirs.

The PEN-105A well was sidetracked from the existing PEN-105 well to a measured depth of 1,640 m and a location some 460 m northeast of the original well. It was designed to drain gas reserves from the northern half of the structure which is bisected by a sealing fault. The original well has recovered some 0.85 Bcf (24 Mm3) of gas from the smaller southern part of the structure since production started from it in March 2010.

Preliminary testing of a 7 m perforated section of PEN-105A produced gas at a rate of 0.928 MMscfd (26,300 m3/d; 154 boepd) and work is progressing to reconnect the well to the production facilities. In the future, it is intended to add additional perforation and to stimulate the well with an acid wash. An acid wash on the original PEN-105 well was very effective resulting in a doubling of the production rate after treatment.

Italian Loan Note

On 4 April 2012 the Group secured a three year, €1 million loan with Cassa Di Risparmio de Cento Bank. The interest is calculated by reference to the three month Euribor rate plus a margin of 7.5%.

BNPP Term Loan Facility

On 29 May 2012 the Group signed a credit agreement with BNPP for a term loan facility totalling up to €15 million. The agreement provides Ascent with the ability to draw down up to €10m immediately to fund the Petišovci field to production. Ascent will then be able to draw down up to a further €5m, subject to certain performance criteria being met, to fund further developments on the field.