Ascent Resources PLC (AIM:AST) shares jumped in Friday’s early deals as it became the latest small-cap explorer to latch itself to the helium bandwagon.
Acquiring a 49% interest in ‘helium-rich’ acreage in Utah and Colorado, for $2 million ($1.75 million cash and $250,000 of premium-priced shares), gives the firm a new lease of life and adds a fresh pipeline of potential catalysts for small-cap speculators.
The acreage comprises mature hydrocarbon fields, presently hosting around 18 billion cubic feet of gas reserves and just shy of 3 million barrels of oil – with a helium play attached.
“Our new investment into upstream acreage secures Ascent's direct interest in material proven reserves which has significant behind pipe and step out as well as exploration upside and gives access to valuable natural gas reserves which can be produced from high helium producing zones within the acreage,” chief executive Andrew Dennan said in a statement.
To support the transaction, the company raised US$475,949 through the issue of 7.52 million ordinary shares at a big premium price of 5p each (203% more than Ascent’s price yesterday).
Ascent also announced a distribution of ‘an entitlement’ to qualifying shareholders, tied to its damages from its dispute with the Republic of Slovenia - which, as described by Dennan, will “give qualifying stakeholders the opportunity of having ring-fenced access to a significant portion of the net proceeds resulting from a successful claim.”
In London, Ascent shares were up 22% changing hands at 2.01p each.