Ascent Resources LON:AST is pleased to report that, further to its announcement of 5 July 2016, the Company, together with its partners in Slovenia, have signed the conditional agreements necessary to allow commercial gas production to commence as early as January 2017.
The new route to market uses an existing production pipeline from the Petišovci field in Slovenia to the Croatian border where the raw gas will be sold.
This route is independent of the IPPC Permit. No further regulatory approvals are required for gas production to commence using this route to market. Additionally, the funding required to commence production is materially lower than would be the case if we were required to construct a new treatment facility in Slovenia.
Furthermore, the Company has entered an agreement to acquire a Company which owns access to a key section of pipeline in Slovenia in return for the issue of up to 75 million new Ascent shares plus options over a further up to 7.5 million shares at a price of 2 pence per share. As such an allotment is beyond the current authority of the Board and a General Meeting has been convened for 22 August 2016 to consider and if thought fit approve the necessary authorities to allow the agreements to become unconditional.
Highlights:
· The Company has confirmed a route to market which does not rely on the IPPC Permit with first gas expected as early as January 2017.
· This route to market is significantly quicker and cheaper than constructing its own gas processing facility.
· The Company has entered an agreement# to acquire a Slovenian Company which holds assets of strategic value to the project; without this acquisition this route to market would be impossible or significantly delayed.
Commenting on today’s announcement, Colin Hutchinson, Ascent’s CEO, said: “These agreements mark a major step forward for the Company. For the first time we have a direct route to sell our gas without relying on further Slovenian permitting.
Additionally, given the materially lower investment required now to achieve first gas, the short term economics of the Petišovci project are much more attractive.
We look forward to first commercial gas as early as January 2017.”
Circular
A Circular will be posted to shareholders on Thursday 4 August. The purpose of which, is amongst other things, to outline the reasons for The Proposals, to explain the terms of the Proposals and why the Board considers the Proposals (including the Resolutions) to be in the best interests of the Company and Shareholders as a whole. The Circular will also set out the reasons 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 at www.ascentresources.co.uk shortly.
The General Meeting of the Company is to be held at 11.00 a.m. on 22 August 2016 at the offices of Taylor Wessing, 5 New Street Square, London, EC4A 3TW, at which the Resolutions will be proposed.
