Ascent Resources PLC Export gas production update (4926W)

TIDMAST

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 2,621m(3) per hour / 2.2 MMscfd and from Pg-11A it has been 1,707 m(3) per hour / 1.4 MMscfd. The maximum the Company will produce during November was set at 60,483 m(3) 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 Sm(3) / 14,929 Mcf of gas was produced - an average of 60,390 Sm(3) 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 EUR300,000.

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 m(3) 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 m(3) 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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November 15, 2017 02:00 ET (07:00 GMT)