Ascent Resources Regulatory News (AST)

12 Oct 2009 10:00



Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas

12 October 2009

Ascent Resources plc ('Ascent' or 'the Company')

Issue of Equity and Facility Limit Increase

Ascent Resources plc, the AIM traded oil and gas exploration and production company, further to its announcement of 14 May 2009, has issued 20,000,000 new ordinary shares of 0.1 pence each ('Ordinary Shares') to GEM Global Yield Fund Limited ('GEM') as part of a draw-down on the equity line of credit provided by GEM. The price of the subscription is 7.19 pence per Ordinary Share, a discount of 9% to the average closing price of Ascent shares over the past 15 trading days.

The funds raised will be utilised to support the ongoing development of Ascent's European focussed portfolio, details of which were announced in the Company's pre AGM trading statement on 23 July 2009. Ascent's schedule for near term development work on its assets includes: 

The Company has also agreed with GEM to increase the limit on the existing facility from £5 million to £10 million; this facility can be called upon at any time until May 2012.

Ascent Managing Director Jeremy Eng said, "The Company's high activity level is set to continue over the coming months, across our European portfolio. The extension of our equity line of credit with GEM is one additional funding option that can be utilised, if required, to maintain our high levels of activity.

"Drilling is underway at our PEN-104AA well in Hungary, and work is due to commence shortly at the Anagni geological appraisal well in Italy. With favourable weather, excellent progress has also been made on the Petisovci 3-D seismic acquisition in Slovenia, and the Filovci 3-D acquisition is ahead of schedule and expected to commence this week. We already have a significant amount of activity planned for 2010 with further 3-D seismic to be acquired in the Lovaszi region of Hungary and more drilling expected in Peneszlek, Petisovci and Filovci." 

Application has been made for the Ordinary Shares to be admitted to trading on AIM on 15 October 2009. Following the issue of the Ordinary Shares, the Company's issued share capital will consist of 380,132,042 Ordinary Shares with voting rights.

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For further information visit www.ascentresources.co.uk or contact:

Notes

Ascent Resources plc has a diversified portfolio of hydrocarbon exploration and development projects across five countries in Europe: Italy, Switzerland, Hungary, Slovenia and the Netherlands. Ascent's portfolio contains a solid base of field redevelopment projects with selected exposure to exploration upside. The portfolio is focused primarily 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 are offshore. Ascent also has an oil and gas asset management joint venture with San Severina Holdings SA, a Swiss based investment company, which is focused on acquiring minority interests and providing investment funding for producing and appraisal or development stage oil and gas projects.

Global Emerging Markets Limited was founded in 1991. The firm is a US$2.7 billion alternative investment group that manages a diverse set of investments vehicles across the world. GEM's funds include: CITIC/GEM Fund; VC Bank/GEM Mena Fund; Kinderhook; GEM India and Banco Pine/GEM Funds. For further information please visit www.gemny.com.