Ascent Resources plc
("Ascent" or "the Company")
Operational & IPPC permit update
Operational update
As previously announced, the Company has been in discussions with new industry partners, to explore alternative routes that would ultimately enable the Company to generate income from the sale of gas from the Petišovci field in 2016, without the need to construct a new gas treatment works. The Company believes that the most viable route will be through using a combination of new and existing pipelines to contract out the processing of the gas from the Petišovci field.
Initial technical and legal due diligence is progressing satisfactorily and discussions remain in an advanced stage. The Company is working to conclude a binding agreement during Q1 2016, with a view to producing gas by Q3 2016.
Further announcements in this regard will be made in due course.
IPPC permit
It remains a medium term objective to construct a new gas treatment works on the Petišovci field. However, before construction work on this facility can commence an Integrated Pollution Prevention and Control Permit ("Permit") is required.
The Permit was first applied for in June 2014. This was approved, subject to public consultation in December 2014 and following the consultation process, the Permit was provisionally awarded in June 2015. Two organisations subsequently appealed to the Environment Ministry but these were rejected in November 2015.
One of these organisations has accepted this decision but the remaining organisation has decided to appeal through the courts.
The appeal to the Slovenian courts is the final step in the determination of the IPPC permit. Guidelines suggest that the process should be completed within six to nine months but in practice it is not possible to estimate with certainty how long the process could last. As far as the Company is aware this latest and solitary appeal contains no further new information. Based on legal advice and the consistent rulings of the various regulatory bodies concerned to date, the Board of Ascent remain confident that the Permit will be awarded in 2016.
As noted above, the appeal should not affect the short-term prospects of the Petišovci project and indeed is expected to improve the Company's cash position as the significant capital expenditure required to construct the new treatment works will now be deferred until at least Q4 2016, by which time the Board expects to be generating revenue through the sale of gas via the alternative route.
Clive Carver, Chairman of Ascent commented: "We are pleased with the progress that is being made towards our goal of producing gas from the Petišovci field by Q3 2016 and generating income. Whilst the final appeal will delay the granting of the Permit and the construction of the gas treatment works we are confident that the alternative route to market represents the better option for the Company, at present."
Enquiries:
Ascent Resources plc Clive Carver, Chairman Colin Hutchinson, Interim CEO |
0207 251 4905 |
finnCap Limited, Nominated Adviser Christopher Raggett Emily Watts |
0207 220 0500 |
IFC Advisory Ltd, Financial PR and IR Graham Herring Tim Metcalfe Heather Armstrong |
0203 053 8671 |
