Ascent Resources Share Discussion Threads

[chinese investor] 04/6/2018 08:33

Yet another tick up !

[thehairydagger] 03/6/2018 10:12

looking great here.

[chinese investor] 02/6/2018 18:54

In your annual report, it says that you are planning a base for the establishment of a major regional gas producer in Slovenia.
How much would increase production?

Geoenergo, a concessionaire, produced gas from 22 old wells, and in partnership with us, from two new wells Pg-10 and Pg-11A, which were drilled seven years ago.
It took a long time for us to start production from these two new wells, now we are learning what kind of gas supplies are here, and we are also working to eliminate the fears of people.
From the beginning of the production of gas and oil in Petišovsko polje, in the middle of the last century, more than 160 wells have been drilled.
In the future, we would open some of these wells, which are deep up to 3000 metres, and increase production.
The long-term plan is that at least fifteen good wells will be produced.
This would happen in the next ten years, not overnight.

What kind of gas is it?

The current 40,000 cubic metres per day would ideally be in the ideal situation in the long run, and increased by five to six times with a new gas purifier.

In the annual report, you mention acquisitions.

We are open for new inputs in Slovenia, we are monitoring other projects that are not necessarily related to oil or gas, but they are within the energy sector.
There are, however, several circumstances that discourage us from investing in Slovenia, in particular the licensing process.
This takes a lot of time.
On the other hand, our knowledge of the region is advantageous and it is possible to transfer knowledge and projects to other countries where it is easier to get permits, such as Croatia, Hungary or Romania.
They have a more stable system of production and marketing of oil and gas, as well as the issue of drilling permits.
Over the past years, we have reviewed several projects, but none of them have been taken into strategic judgment.
Maybe it's a company that wants to get involved in a project and wants us there.
This option is open.
In London, there are many small oil and gas companies targeting Central European countries.
There is a great demand for natural gas here, and the price of this will increase.
Therefore, a larger Central European gas company is attractive to investors.

All this is open if you get permission in Slovenia.
What if you do not get them?

The project will stop and the company in Slovenia will be closed (I don't think so).
We invested 50 million euros in the project, and we have been in the country for more than ten years.
The company's market capitalization is currently 20 million pounds.
In short, we have invested a lot of money, and due to licence delays, we still send raw gas to Croatia.
It would be more economical to install a gas cleaning device, which would then be able to go into the Slovenian gas network.
We gave the application for a permit for the installation of a new gas purification plant in 2014, going through all the process that has been going on for too long, since NGOs have so much power to stop it permanently.
We got the permission of the Environmental Agency and the Ministry of the Environment, and then went to the court, which in 2016 said that the law was used incorrectly, which brought us back to the beginning of the process.
We had to start again and two years later we are still in the process.
This is such that it is difficult to do anything in Slovenia.
Not only in the field of oil and gas, but also in other areas.
It would really make sense to carry out a revision of this process, as it effectively limits economic growth.

When considering the application for a new gas purification plant, it was emphasized that you did not ask for an increase in gas production in it (Is this true ?), and all comments about hydraulic fracturing were also rejected.(Is this true ?)

We asked for permission to install a gas cleaning device, the process has lasted for five years and we hope it is now over.
Recently, we also applied for a permit for hydraulic stimulation of two wells, Pg-10 and Pg-11A, in order to suppress (This is probably the wrong word) the level of production of these two wells in the future.

This was the biggest concern to the environment for NGOs.

What we want to do on Pg-10 and Pg-11A is the same thing as we did in 2011.
This can not be compared to what they do in North America, that is, as a comparison of apples and oranges.
We stimulate sandstones, 3000 to 3500 meters below the surface, which are much softer material than slates.
We need much less water, much less pressure, and more than 2000 meters away from water sources. It's a steady mining process.
In North America, they work 1500 metres deep, 1000-metre horizontal hydraulic breakage.
I see what worries people, but this is not happening here.
Hundreds of hydraulic stimulations were performed, but there were no environmental problems or accidents.
And even what you see about hydraulic fracturing in reports is very exaggerated.
If it were true, people would have moved out of Texas for constant earthquakes.

Water from the tap was burning in the US records.

These people see and read.
The film was most likely to be paid by foreign governments that had been damaged by the production of gas in the US.
This propaganda and false perception of fracking persists.
If everything were true, this industry would be shut down tomorrow.
The media in the UK were also very opposed, many NGOs protested, but the government is aware of the risks and has made a strategic decision that energy independence is important.
Now, too, Britain will go to test production of shale gas.
There is no reason to fear hydraulic stimulation.
This is happening in Croatia, Hungary and Austria, all without negative effects on the environment.
In 2011, the Geological Survey of Slovenia made an environmental study of our activities in Prekmurje.
They studied all the effects and did not find any negative impact on the environment.

Nothing in the underground and thermal water?

Nothing, no harm.
If there was damage,
I would understand why people are against.
So I do not understand what kind of benefits those who oppose the project.
It's hard to understand.

They say that they would use warm water for heating, for growing tomatoes and spas.

They do it.
Our work does not affect heating plans, tomato cultivation or spas.
The only thing is that we get business and jobs.
Tomato producers in Pomurje are also switching to gas use because they are cheaper than geothermal heating.
Unfortunately, this gas is not Slovenian.
Slovenia imports 99.9 percent of gas, which is nonsense.
Croatia produces 40% of its consumption, Romania, Hungary, Austria, all produce a two-percent share of gas at home.
These are strategic resources.
Slovenia is completely dependent on Russian gas.
Gazprom sets gas prices in the country.
Many investors in London do not understand why Slovenia does not want to develop its own gas source.

How much is a source?

The resource is quite exhaustive.
In the next 20 years, Slovenia could produce 10 percent of the gas it consumes here.
I spoke with environmentalists and we agreed that gas is a transitional fuel to reduce emissions.
In North America, emissions were the most diminished by the transition from coal to gas.

But the gas switch has occurred because gas prices have fallen, and you say that its price will rise.

Everything will go up, and oil prices will grow.
The price of gas will remain attractive in Central Europe.
If there is an extraordinary increase in gas production, as happened in the US, prices will fall drastically and thus the coal industry.

What is in Slovenian gas?
In Russia, sulphur is extracted from the gas for the artificial fertilizers industry, and helium is also recovered.

The gas in Prekmurje is of high quality, sulphur and carbon dioxide is negligible, Croatians are very satisfied with it.
To connect to the Slovenian national gas network, we would just have to reduce the level of sulphur and carbon dioxide, so we also need a new gas cleaning device.

Due to the incomplete operation of the Pg-11A well, the supply of Croatian INA is too low.
Will you have to pay penalties?

With supplies, we are just slightly below the lower limit.
If the Pg-11A will soon work, as we hope, we will be back in the agreed frames.
We work well with INA and do not expect major penalties.
The biggest concern is to increase production from Pg-11A.

Are current and potential investors worried about the inaction of Pg-11A?

Yes, I think they are.
Investors are most concerned about the inaction of Pg-11A and the acquisition of an environmental permit to install a new gas purification plant.
Pg-11A is in our hands to bring equipment, performers and consultants and find a solution.
Permissions are in the hands of others.

How can this problem damage your strategic review that is taking place and with whom you are looking for a partner?

The purpose of the strategic review is to find the best way forward.
When I arrived in Ascent five years ago, the company was stuck in a project in Petišovci.
We also had other projects across Europe.
We sold them and focused on Slovenia.
For a long time we tried to obtain an environmental permit, which would launch the project and we could start (our partner Geoenergo) to sell gas.
We agreed with INA for the sale of gas, so in London we collected ten million euros from investors, finished both wells and built the necessary infrastructure to start pumping.
We are therefore generating revenue and profits if the Pg-11A would be fully operational, would be even greater.
However, we have proven that the project is working.
That was, therefore, a delicate time to launch a strategic review.
We are looking for a larger partner to support the project in Slovenia.
So far we have invested 50 million euros, but we have to find someone who will invest the next 50 million euros for the second phase.
So far, there has been some interest of potential investors.
There are several forms of cooperation possible; that the buyer buys a project from us, that the partner acquires a stake in the project or we get a new strategic investor in the ownership of Ascent.
We talk about all the options.
It would certainly help to talk if the Pg-11A well is more efficient and if you get more permits.
Nevertheless, interest is because there are plenty of gas in Petišovo polje, the infrastructure is set up and the project is feasible.

Who expressed interest?

I can not say names.
It is a wide range of companies, with companies from all over the world talking to us.
Some companies are private, listed on the London Stock Exchange, some at other stock exchanges, and private equity funds are also interested in investing in Ascent.

Are Slovenian companies also among the stakeholders?

No, Slovenian companies are not among potential potential investors.

What is the timeline for a strategic review?

There is no precise timetable, but we do not want to pull a strategic review too long.
We hope to see progress in the next two months, but it's hard to say for sure.

Are they interested in any kind of offer?

Not yet.
When this happens, we will publish in accordance with the rules of the London Stock Exchange.

Last year you made revenue with INA for the first time.
What kind of revenue do you expect this year?

Last year, in November and December, we generated 300,000 euros per month.
Therefore, we will generate more than three million euros per year, depending on the pumped amount of gas from the Pg-11A well.
We want to generate even more traffic, since we invested 50 million euros, but we need licences for this.

[janek02] 01/6/2018 17:04

Due dilligence might need some month maybe longer before a deal is realy signed off. You won´t get any information in the meantime.

We just sold a part of our business and that needed more than half a year.

[chinese investor] 31/5/2018 11:24

Buying & selling have understandably stopped !

[chinese investor] 31/5/2018 10:42

TIMETABLE

IPPC News - another 4 months
Reopening PG-10 & PG-11A - couldn't care less
PG-11A Working - imminent
Offer or Similar - anytime

[codhead1] 30/5/2018 17:03

Well with some 6 weeks gone since the For Sale sign was put up I wonder if we could see something pulled out of the hat before the agm on the 18th June so the board can feel confident of re-election. What is the norm before any info comes out when a company puts the for sale sign up? Anybody out there been through something similar?

[chinese investor] 27/5/2018 08:22

14 March 2018 (Report submitted on 6 April 2018)

"Ascent Resources plc, the AIM quoted European oil and gas exploration and production company, announces that it has received a request for further information from the Slovenian environmental agency.

This information has been requested in connection with the agency's assessment of the partners' application for a permit which is required to construct a processing plant in Slovenia. The additional information principally consists of a baseline survey report to measure the current state of the greenfield site on which the proposed plant will be constructed.

This request has been issued as a result of changes to environmental legislation which have been introduced since the IPPC permit application was initially awarded in June 2015. The project partners have substantially completed the work required. The submission will be finalised and submitted within the next three weeks. The Company looks forward to providing an update on receiving the permit in due course."

[xow98] 23/5/2018 23:53

Letter to shareholders

[chinese investor] 23/5/2018 13:18

Good Interview !

I'm still concerned about the INA penalties !

Let's hope the new de-watering equipment works !

[dandadandan] 23/5/2018 10:59

Check out CHs interview on the AST web site.

Just waiting for the bid to 'value the company appropriately', IMO.


GLA.

[chinese investor] 22/5/2018 10:42

Central European Day Ahead Price is now over 23 euros per MWh !

[chinese investor] 21/5/2018 14:20

Another tick up would be nice !

[chinese investor] 21/5/2018 13:13

I've sent my letter to Colin.

[dandadandan] 20/5/2018 10:09

SIG Update.

Instructions at

hxxps://mega.nz/#!8tFFQA5T!xKH3dZoI3eN9vKZSnVlEXOianGafhfs_ZErLdrxu8HE

Final Letter at

hxxps://mega.nz/#!FwNEkJwJ!9g6kaFDDyi6LAXVBtJNef_iZZ9JVa9kVohJOlXuM1-U

Mine will be sent on Monday. (Remember to replace the hxxps with https).

As always check it out and DYOR.
But do not just sit back and wait for someone else to do all of the work.
The SIG need all PIs support.
Make a difference....

GLA.

[chinese investor] 19/5/2018 14:14

We were expecting to be shipping 82,425 cubic metres of untreated gas per day (the INA maximum) by now.
That's 877 MWh per day or 32,000 MWh annually.
As we are getting 17 euros per MWh (70% of CEDA) that is an annual revenue of £5 million !
You can add the revenue for the Condensate to that !

We'll be lucky to get £2 million at this rate !

Colin - that's why we are asking the questions !

[dandadandan] 19/5/2018 09:10

Shareholders Interest Group (SIG)from LSE Board.
The Latest Update.

Well done Neebaj and MONARCH from the LSE Board.

Here is his latest draft which needs to be finalised.
Just download and check it out.

hxxps://mega.nz/#!90E2gRhL!LTL3mc1sfFGLX8Q6U-E45LZQSg9ggNqF_kkBeVIQUjM

(Remember to replace hxxps with https).

It is suggested that everyone have a read over the weekend.
The plan is to send it out by Monday next week.
The reason for getting this out quickly is so Colin H and the BoD have time to digest the material before the AGM.

(No BoD excuses or filibustering, please).

Remember the SIG does not want share price destruction.

PIs with one voice, you may not agree with everything but no one usually does, .

It is a time for PIs to be joining forces with some collective responsibility, IMO.

As always DYOR. It is your money that you invest.

GLA.

[temmujin] 19/5/2018 06:08

i'd like to see also a criminal investigation into the shorting of this share by certain institutions who knew what was going on with pg11...

[temmujin] 19/5/2018 06:06

good letter by the action group...lets see how the BOD responds...i think its time for hutchison and carver to go..we'd save a small fortune in wages anyway,overpaid for their capabilities

hxxps://mega.nz/#!90E2gRhL!LTL3mc1sfFGLX8Q6U-E45LZQSg9ggNqF_kkBeVIQUjM

[chinese investor] 18/5/2018 16:13

I imagine Colin's getting a lot of mail at the moment !

Anyway an end of week tick up would be nice !

[dave19w] 16/5/2018 12:05

During an period strategic review I would expect low news flow until something solid to report. IMHO

[coldspring] 16/5/2018 07:32

Oh look another day with no news......FFS AST this is going down down down. Expect a roasting at the AGM.

[coldspring] 15/5/2018 11:48

You are flogging a dead horse here my friend. Colin's goose is cooked with his flaky updates. Only the permit or a t/o or both will solve this malaise.