Ascent Resources PLC Strategy Update, Issue of Equity and TVR (2930H)
March 24 2020 - 3:00AM
UK Regulatory
TIDMAST
RNS Number : 2930H
Ascent Resources PLC
24 March 2020
Ascent Resources plc
("Ascent" or the "Company")
Corporate Strategy Update, Issue of Equity, Placing Update,
Total Voting Rights Update and Appointment of Company Secretary
24 March 2020
Ascent Resources Plc (LON: AST) the onshore European independent
oil and gas exploration and production company, is pleased to
provide an update on its forward corporate strategy, announce an
issue of equity and provide an update on the recent placing and
resulting TVR.
Existing European Strategy
The Company notes the election of a new government in Slovenia,
where its principal current asset, the Petišovci gas field, is
located.
Following the recent approval of the Company restructuring, the
newly appointed Board is in the process of reviewing the Company's
asset in Slovenia, and in particular the Company's positioning with
its joint venture partners and stakeholders in country. An
announcement will be made in this regard following meetings with
key relationships in country which are being scheduled, subject to
Coronavirus-related European travel restrictions.
As part of its ongoing strategic review in Europe, the Company
is pleased to confirm that given its existing skill sets and
regional relationships, it continues to evaluate multiple
opportunities to grow its European footprint, including in
neighbouring Central Eastern European countries and in the United
Kingdom.
Caribbean and Hispanic America New-Entry Strategy
As part of an expanded international strategic review, the
Company has also identified the Caribbean and Hispanic America
region as highly prospective for oil and gas, and a region where
the new team's industry experience, existing relationships and
skill set can add value for shareholders. The Company is focused
initially on attractive production and appraisal portfolios and
views the current low oil price environment as an opportunity to
secure advantageous entry terms. It also notes recent legislative
and licence changes to encourage foreign investment with attractive
fiscal terms, reduced tax rates and tax holidays in some
jurisdictions. With this expanded international strategy in mind, a
new subsidiary of the Company is being launched, Ascent Hispanic
Ventures, which will be the subsidiary vehicle for growth
opportunities in this region. We expect Ascent will benefit from a
counter cyclical early mover advantage as one of the few active
foreign independent E&P companies in the region.
The Company looks forward to updating investors as appropriate
as negotiations on these new initiatives progress.
Issue of Equity
The Company, consistent with its policy to preserve its
substantial cash balance for acquisitions and upstream operations,
has issued 166,666 shares to exiting directors at a price of 5p per
share in lieu of cash settlement and a further 390,000 shares at a
price of 5p each per share and 214,286 shares at a price of 3.5p
each to select professional advisors. The Company has also awarded
424,482 warrants to select professional advisors at a strike price
of 5p per warrant, the warrants have a three year vesting, and
expire after five years. Application has been made for the 770,952
new Ordinary Shares being issued to be admitted to trading on AIM
which is expected to occur on 30 March 2020 ("Admission").
Placing Update / Correction
Further to the announcement made on 13 March 2020, the Company
also announces a correction to the total funds received which
currently amounts to GBP485k with 9,700,000 new ordinary shares
having been issued. The Company has taken legal advice in relation
to the further committed funds of GBP200k in respect of which
payment has not yet been received and confirms that this further
commitment is legally enforceable. In the event that the funds are
not received from the relevant investor (an FCA regulated
institution), the Company intends to commence legal proceedings in
respect of the amount due. This is done to protect the interests of
existing shareholders in the current market.
Total Voting Rights
The Company further announces that the total number of Ordinary
shares in issue as at 13 March 2020 was 39,896,484. This is a
correction to the figure per the announcement of 13 March 2020.
Therefore the total issued share capital with voting rights of the
Company as at 13 March 2020 stood at 39,896,484.
Following the allotment of 770,952 new Ordinary shares the
Company's total issued share capital as at 30 March 2020 will
consist of 40,667,436 Ordinary shares of 0.5 pence each. This
figure may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or change in their
interest in, the share capital of the Company pursuant to the FCA's
Disclosure Guidance and Transparency Rules.
Company Secretary Appointment
As the first of a series of staffing changes in preparation for
its new journey post the recent restructuring, the Company also
announces the appointment, with immediate effect, of AMBA
Secretaries Limited, as Company Secretary.
Enquiries:
Ascent Resources plc 0207 251 4905
WH Ireland, Nominated Adviser & Broker
James Joyce / Chris Savidge 0207 220 1666
SP Angel, Joint Broker
Richard Hail, Caroline Rowe 0203 470 0470
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END
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