Ascent Resources Raise £1million

Ascent Resources has told DirectorsTalk that is has conditionally raised £703,500 (before expenses) by way of the proposed Placing of 70,350,000 New Ordinary shares at a price of 1.0 pence* per share. The Company has also agreed a drawdown of an additional £296,500 from the Henderson Facility.

The Directors believe that this £1 million should allow the Company to meet its short-term obligations and work towards its new goal of achieving first gas within 12 months.

Highlights:

·      Advanced stage of discussions with new industry partners, which, if completed, would allow the Company to produce and sell gas from the Petišovci field without the need to construct a new gas treatment facility which should significantly shorten the time to first gas and materially reduce upfront capital costs

·      The Board expects to be in a position to enter into a binding agreement with an industry partner by the end of Q1 2016, with first gas revenue by the end of Q3 2016

·      The Slovenian Environment Minister has informed the Company that she has rejected the appeals against the award in July 2015 of the IPPC permit, required to construct a gas treatment facility.  Project partners are in discussions with the objectors to find ways to address their concerns without the need for a court review of the Minister’s decision

·      An agreement reached with the holders of a majority of the principal amounts outstanding pursuant to the Loan Notes to extend the maturity date of the Loan Notes by one year and to rebase the conversion price to the Issue Price

·      A capital reorganisation to reduce the nominal value of an Ordinary Share from 0.1 pence to 0.01 pence and subsequently consolidate the Ordinary Shares by a factor of 20 to increase the nominal value to 0.2 pence per Ordinary Share

Having made a concerted effort over recent months to attract investment into the Company and having held discussions with a number of potential investors whose offers were less attractive than those put forward by the Placees, the Directors believe that they have secured the most favourable financing available to the Company at the current time.

*Following the proposed Capital Reorganisation

Circular

A Circular will be posted to shareholders today, the purpose of which is, amongst other things, is to outline the reasons for, and to explain the terms of the Proposals and to explain why the Board considers the Proposals (including the Resolutions) to be in the best interests of the Company and Shareholders as a whole and why the Directors recommend that you vote in favour of the Resolutions at the General Meeting as they intend to do in respect of the Ordinary Shares held by them. Extracts from the circular can be found below and a full copy will be made available on the Company’s website www.ascentresources.com.uk shortly.

The General Meeting of the Company is to be held at 2.00 p.m. on 30 November 2015 at the offices of finnCap, 60 New Broad Street, London, EC2M 1JJ, at which the Resolutions will be proposed.

Expected Timetable

References to time are to London time unless otherwise stated. Save for the date of dispatch of this document, each of the times and dates above are subject to change.  Any such change will be notified to Shareholders by an announcement on a Regulatory Information Service.