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Ascent Resources PLC - Export gas production update

RNS Number : 4926W
Ascent Resources PLC
15 November 2017
 

Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas

 

15 November 2017

Ascent Resources plc

("Ascent" or "the Company")

 

Export gas production update

 

The Board of Ascent Resources plc (AIM: AST), the European focused oil & gas exploration and production company, would like to update shareholders on the start of export production from the Petišovci field in Slovenia

 

The Company commenced export production from well Pg-10 on Thursday 2 November 2017 and production from well Pg-11A was added on Friday 3 November. Both wells have been flowed together and on their own during this commencement phase to acquire a greater understanding of their potential. The maximum flow from Pg-10 during the period has been 2,621m3 per hour / 2.2 MMscfd and from Pg-11A it has been 1,707 m3 per hour / 1.4 MMscfd.  The maximum the Company will produce during November was set at 60,483 m3 per day / 2.1 MMscfd prior to production commencing. 

 

For the first full week of activity between 6 and 12 November, a total of 422,733 Sm3 / 14,929 Mcf of gas was produced - an average of 60,390 Sm3 per day / 2.1 MMscfd - along with 17,334 litres / 110 barrels of condensate. The Company expects to produce around this level for the remainder 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 terms of the INA contract set an upper and lower limit on production calculated in megawatt hours (MwH). For the first two months, these translate into a range of 58,182 to 77,577 m3 per day / 2.1 MMscfd to 2.7 MMscfd. In the subsequent ten months of the contract the range is 63,031 to 82,425 m3 per day / 2.2 MMscfd to 2.9 MMscfd. The Company will take a decision on increasing production for the month of December once it has assessed well performance in November. 

 

Production at these levels, assuming average rates remaining reasonably stable, will make the Company profitable at an EBITDA level and generate positive operating cash flow once payments for gas sales begin to be received in early January 2018.

 

Colin Hutchinson, CEO of Ascent, commented: 

"We are pleased that we have successfully entered phase one of the field development plan; 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."

 

Enquiries:

Ascent Resources plc

Clive Carver, Chairman

Colin Hutchinson, CEO
 

0207 251 4905

 

WH Ireland, Nominated Adviser & Broker

James Joyce / Alex Bond
 

0207 220 1666

Yellow Jersey, Financial PR and IR

Tim Thompson / Harriet Jackson / Henry Wilkinson

0203 735 8825

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Quick facts: Ascent Resources PLC

Price: 6.75001

Market: AIM
Market Cap: £5.14 m
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