13 April 2017
Ascent Resources plc
("Ascent" or the "Company")
First gas
The Board of Ascent Resources plc (AIM: AST), the European focused oil & gas exploration and production company is delighted to report that commercial production has commenced from well Pg‑10.
The Company has been involved in Slovenia for nearly ten years and almost €45 million has been invested over the course of the project by Ascent and its partners. As such the first sale of gas from a joint venture well marks a significant milestone in the life of the project and provides a testament to the commitment of the partners who have worked together to overcome significant historic hurdles.
Bringing Pg-10 into production is the first step in our phase one development plan. We are now moving to the recompletion of Pg-11A, which will begin later this month, and this will be followed by the commencement of export sales.
Pg-10
Well Pg-10 is a vertical well with an 'S' deviation, which was drilled to a total depth of 3,497 metres in 2011. The well targets the 'F' sand at 3,125 to 3,175 metres and was successfully flow tested in January 2017, after it was recompleted for production. Gas from Pg-10 is being treated at the existing CPP (gas processing facility) from where it is being transported for sale.
Pg-11A
The partners plan to begin the recompletion of the second joint venture well, Pg-11A, by the end of this month with the work programme anticipated to run for around four weeks. Pg-11A targets the L, M and N sands at a depth of 3,108 to 3,241 metres. The work programme will replace a section of the tubing string and make the well ready for production.
Infrastructure for gas to INA
All the equipment required to facilitate production to INA has been ordered and, subject to timely delivery, we plan to begin production to INA by the end of June 2017.
IPPC Permit
Following the favourable decision of the Environment Ministry in March 2017 we are optimistic that the IPPC Permit will be declared finally valid later this year. This will enable the Company and its partners to begin producing gas into the Slovenian grid and move the project into its next phase.
Funding
Efficient planning and equipment ordering is expected to result in significant savings from the budget to bring the field into production.
Colin Hutchinson, CEO, commented:
"The Board is extremely pleased that this day has finally arrived and would like to thank our staff, our partners, the Slovenian administration and our shareholders for making this possible. Today marks the Company's official shift from explorer to producer."
Enquiries:
Ascent Resources plc Clive Carver, Chairman Colin Hutchinson, CEO |
0207 251 4905 |
Stockdale Securities Limited, Nominated Adviser and Joint Broker Richard Johnson Edward Thomas |
0207 601 6100 |
Northland Capital Partners Limited, Joint Broker Tom Price |
0203 861 6625 |
IFC Advisory Ltd, Financial PR and IR Tim Metcalfe Heather Armstrong |
0203 053 8671 |
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