Ascent Resources Regulatory News (AST)

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

04 February 2019

Ascent Resources plc

("Ascent" or the "Company")

Operational update

The Board of Ascent would like to provide the following update to shareholders on permitting, production and business development.

Permitting

As previously announced the partners have applied for two separate permits, the IPPC which would allow the joint venture to install a processing facility to treat gas produced from the field to a standard suitable for the Slovenian national grid, and the re-stimulation permits which would allow the existing wells to be worked over in order to bring their production back to their potential.

We have been continuing to respond to all requests for further information from the Environment Agency ("ARSO") in relation to both permits. Given the level of detail already provided and the clear and significant benefits of the project to Slovenia we remain hopeful that the Agency will confirm both permits without a further unnecessary delay.

Benefits of the project to Slovenia

The further development of the Petišovci field offers material benefits to Slovenia. 

Environmental benefits

Natural gas is the most environmentally friendly fossil fuel and is recognised by nations around the world and by the Slovenian national energy strategy as having a crucial role in a transition to a low-carbon society. 

Economic benefits

Gas exploration and production has been a part of the economy in the Pomurje region for more than 70 years. Over this time hundreds of wells have been drilled and since the 1950's the vast majority of these have been hydraulically stimulated in a similar way to the procedures currently being reviewed by ARSO.

The project provides a significant amount of employment in the area both directly and indirectly as well as providing significant tax revenues to the Slovenia state from the full development of the field.

Strategic benefits

Slovenia currently imports virtually all of its natural gas requirement, as the majority of current production from the field is being exported to Croatia.

Being able to produce a material percentage of domestic natural gas consumption from national resources would provide a significant degree of energy independence for the Republic of Slovenia.

Legal recourse

We remain hopeful that the permitting procedures will be concluded in a timely fashion and the necessary permits shall be successfully obtained.

However, should this not be the case, the Board of Ascent shall seek to protect shareholders' interests through legal action for damages, with the assistance of the appointed legal experts.

Production

Total production in is estimated to be January was 412,763 cubic metres (14,577 Mcf / 2,513 boe) an average of 0.5 MMscfd / 81 boepd and revenue for the month is expected to be around €70,000.

Total production in December was 420,559 cubic metres (14,852 Mcf / 2,677 boe) an average of 0.5 MMscfd / 86 boepd and revenue for the month was €84,144.

Business development

As previously announced, the Company is progressing its strategy of expanding operations in the region.

In February our team intend to visit the data room in Zagreb with a view to assessing the opportunities presented by the current onshore licensing round in Croatia. Our initial assessment is that there are a number of blocks where the Company's experience in Slovenia would be of significant benefit.

In addition, we continue to review a number of opportunities which could be progressed with the current resources available to the Company.

Colin Hutchinson, CEO of Ascent Resources plc, commented:

"While the pace of progress in Slovenia remains frustratingly slow, as we continue to follow the process and provide those responsible for making the permitting decision with all of the information they require, based on the unarguable benefits for the country I remain hopeful the permits will be awarded in due course."