Ascent Puts Up 'For Sale' Sign
AIM-listed junior gas producer Ascent Resources is up for sale.
A range of strategic options, including either a partnership or outright takeover, were being explored, it said April 17. It acknowledged “several expressions of interest” received from industry players interested in working with it on development of Petisovci, the small Slovenian gas field where it started production. “Discussions are all at an early stage and there can be no assurance that any of them will result in a transaction acceptable to the company,” said Ascent, adding that it is not in talks with any potential takeover suitor, and has engaged advisory firm GMP FirstEnergy to explore options.
In the 12 months since Petisovci production began in mid-April 14 2017, Ascent said that a total of 11.4mn m3 gas and 2,200 b/d condensate (gross) had been sold – more from its Pg-10 well than its recent and problematic Pg-11A well which remains de-pressurised. Ascent holds a 75% interest in Petisovci while local partner Geoenergo holds the other 25% and the concession is due for renewal in 2022. Since early November, the gas has been delivered to Ina, the Croatian producer across the border. Sales were planned to start in July of last year.
Ascent says there is 456bn ft3 gas in place (gross). Up to seven of the existing Pg wells and well D14 are seen as suitable candidates for development, said Ascent, adding that it has begun the process required to re-enter these.
Ascent reported a post-tax 2017 loss of £2mn ($2.9mn), compared with its 2016 loss of £2.7mn.