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Ascent Resources “delighted” as it reports first gas sale in Slovenia

The company is an oil and gas explorer no more after commercial gas production commenced from its Pg-10 well in Slovenia
gas flare
Ascent and its partners have spent almost €45mln on operations in Slovenia

Oil and gas producer Ascent Resources plc (LON:AST) has told investors it is “delighted” to report that has started commercial production from its Pg-10 well in Slovenia.

Ascent has been involved in Slovenia for almost a decade and, along with its partners, has ploughed the best part of €45mln into its operations there.

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As such, it said the first sale of gas from the joint venture well “marks a significant milestone in the life of the project”.

“Today marks the company's official shift from explorer to producer,” said chief executive Colin Hutchinson.

“The board is extremely pleased that this day has finally arrived and would like to thank our staff, our partners, the Slovenian administration and our shareholders for making this possible.”

Onto the next one

With Pg-10 now producing, Ascent said its focus will turn to the other joint venture well, Pg-11A.

Its partners plan to begin the recompletion of the well by the end of April. Once underway, the work programme is expected to last for four weeks and will replace a section of the tubing string and make the well ready for production.

What the brokers are saying…

“Very positive news from Ascent Resources with the commencement of first gas extraction from Pg-10, marking an important transition for the company from developer to producer,” said Northland Capital analyst Ryan Long.

“With the first well recompletion finished, the company now shifts its focus to the recompletion of second well (Pg-11A) and the upgrading of the CPP plant, allowing Ascent to expand production and then upgrade the gas sold by dehydrating and treating it for sale under the contact with INA.

“This will result in the sale of a higher margin product by the end of June 2017.”

Shares edged higher to 2.29p late in morning trading on Thursday.

--Updates for broker comment and share price--

 



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