Ascent Resources plc, the AIM-listed oil and gas exploration and production company focused on Slovenia and Central Europe is pleased to provide the following update on the revised strategic direction of the company, current operations in Slovenia and the signing of an extension to the INA gas sales agreement.
Extension of INA gas sales agreement
Ascent and its partner Geoenergo have signed a two-year extension to the gas sales agreement allowing gas from the Petišovci field to be transported to the INA processing facility at Molve in Croatia.
Administrative Court Appeal in Slovenia
The partners are still waiting for a ruling on the appeal against the decision of the Slovenian Environment Ministry to force the joint venture partners to carry out an unnecessary environmental impact assessment for well stimulation work at its Petišovci project in Slovenia.
This work is essential in order to address natural gas production decline, with operations of this nature having been carried out in Slovenia more than a hundred times since the 1950’s.
The appeal was submitted in July 2019 but there is no certainty over when the Administrative Court will reach its decision.
Continuing to look for value at Petišovci
Along with our joint venture partners in Slovenia, we continue to explore other opportunities to increase production from existing and potential new reserves within the Petišovci field.
Based upon recent reinterpretation of the newly reprocessed Petišovci 3D seismic survey, several shallow conventional drilling opportunities have been identified which require no stimulation. The partners look forward to progressing these opportunities in 2020.
Average monthly production from July to November 2019 for our two existing wells was 7,136 Mcf.
Claims for damages and funding
As previously announced, the Company has been progressing an arbitration claim for the significant damages incurred as a direct result of the manifestly wrong actions of the Slovenian authorities and continues to have positive discussions with parties interested in providing non-recourse litigation funding to advance this claim.
The Company continues to manage its cost base while it seeks redress and to monitor its on-going working capital needs.
Diversifying our asset base
The Company has identified several potential opportunities to diversify its asset base outside of Slovenia. We are working on due diligence on several opportunities and will update shareholders should we execute on an opportunity.
John Buggenhagen, CEO of Ascent Resources plc, commented:
“We continue to press forward on all fronts to preserve and diversify the value of Ascent. Our focus on preserving the significant value of the Company’s investment in Slovenia remains management’s top priority with a focus on new potential drilling opportunities in the coming year as well as continuing to move forward with efforts to initiate an arbitration claim for damages. I understand shareholder’s frustrations at the time this is taking, but it is important to make sure that the Company follows the process before us with a diligent and considered approach. The strategy we set out in August remains our focus and I am hopeful we can start to deliver results in the coming year.”
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