Ascent Resources PLC Export gas production update (4926W)
November 15 2017 - 2:00AM
UK Regulatory
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
END
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