Ascent Updates on Exports to Croatia
Having started exports from its Petisovci field in Slovenia to neighbouring Croatia on November 3, UK-listed Ascent provided an update November 15 on current gas exports.
For the first full week of activity from November 6 to 12, it said an average of 60,390 m3 per day (2.1mn ft3/d) along with 110 barrels of condensate during the week were produced.
It expects to produce around this level for the rest of this month. Production at this level, based on average pricing for the month to date, would yield targeted revenue to the joint venture of close to €300,000. The maximum the company will produce during November was set prior to production commencing at 60,483 m3/day (2.1mn ft3/d).
Ascent started export production from well Pg-10 on November 2 and production from well Pg-11A was added the next day.
The terms of the contract with Croatian importer INA set an upper and lower limit on production of 58,182 to 77,577 m3/d (2.1mn to 2.7mn ft3/d) in the first two months, said Ascent, rising to 63,031 to 82,425 m3/d (2.2mn to 2.9mn ft3/d) in the subsequent ten months. Ascent said it will decide on increasing production for December once it has assessed well performance in November.
Assuming average rates remaining reasonably stable, Ascent said it will be profitable at a pre-tax earnings (Ebitda) level and generate positive operating cashflow, once payments for gas sales begin to be received in early January 2018. CEO Colin Hutchinson said: "Now that we have commenced production, our focus has shifted to the planning for the re-entry and recompletion of suitable existing wells to further increase production."
Mark Smedley