Ascent Resources PLC Operational Update (0817Z)
March 10 2017 - 02:00AM
UK Regulatory
TIDMAST
RNS Number : 0817Z
Ascent Resources PLC
10 March 2017
10 March 2017
Ascent Resources plc
("Ascent" or the "Company")
Operational Update
First sale of gas
The Board of Ascent Resources plc (AIM: AST), the European
focused oil & gas exploration and production company is pleased
to announce that gas production from Pg-10 is expected to commence
to a local corporate consumer in the early part of April 2017. This
will provide the Company with immediate revenue until the increased
production under the INA contract commences.
The flowline from Pg-10 has been completed and will be connected
immediately before production begins.
Production to INA
Separately, preparations for the sale of gas to INA under the
existing contract are well under way. Whilst the final treatment of
the gas delivered to INA will be at their treatment plant at Molve
in Croatia, the gas from Pg-10 must first be dehydrated at the
Petišovci field.
The Company had intended to lease temporary equipment while the
refurbishment of the existing gas separation facility (CPP) was
completed. The minimum lease term for this equipment was six months
and the anticipated cost was deemed higher than necessary.
Accordingly, revisions to the CPP design have been made, based
on the data obtained during the Pg-10 flow test completed in
February 2017. These refinements allow for a more efficient
installation, which will result in both time and cost savings,
without the need for the leased equipment. The refurbished plant is
expected to be ready for production to INA in three months at
around half of the previously budgeted cost of EUR1million,
increasing the profit expected on the INA contract.
During the period while these works take place gas will be sold
locally as noted above.
Pg-11A recompletion
The workover of Pg-11A will start in April 2017 and is expected
to last around four weeks. A rig owned by our partner, Petrol
Geoterm, will be used to remove and replace the tubing string. Once
this work has been completed a 40 metre flowline will be laid to
connect the well to the CPP.
Connection of the export line
The existing pipeline from the CPP will be connected to the
existing export pipeline at MRS Lendava which is the land that
Ascent acquired when it purchased Trameta doo in July 2016. The
site has been cleared of obsolete equipment and made ready for the
short connection to be installed. This connection has been
pre-fabricated and will be installed in April.
IPPC Permit
The Company remains optimistic that the Environment Minister
will soon confirm the decision of the Environmental Agency, in
November 2016, that a full Environmental Impact Assessment is not
required for the new processing facility.
Colin Hutchinson, CEO, commented:
"I'm delighted to report impressive progress at our asset in
Slovenia which illustrates that after years of frustration and
delays we are only weeks away from commercial production and the
further development of the field."
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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