Shares in Ascent Resources (LON:AST) were in demand early on after it announced it has found a commercial customer for its Slovenian gas that will produce immediate cash flow while makes preparations for a larger supply deal.
The output from its Pg-10 well will start pumping to the unnamed client from the early part of April.
In a comprehensive update, Ascent said preparations are well underway for larger supply contract with the Croatian oil and gas firm INA Group.
The company said it won’t now need to lease equipment to treat the gas with the existing plant expected to be refurbished in three months at around half of the previously budgeted cost.
Finally, the workover of the Pg-11A well will start next month and is expected to last around four weeks.
"I'm delighted to report impressive progress at our asset in Slovenia which illustrates that after years of frustration and delays we are only weeks away from commercial production and the further development of the field," said Ascent chief executive Colin Hutchinson.
At 8.20am, the shares were changing hands for 2.2p, up 3.5%. This values the business at £34mln.