Posted by OilVoice Press - OilVoice
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 2,621m3 per hour / 2.2 MMscfd and from Pg-11A it has been 1,707 m3 per hour / 1.4 MMscfd. The maximum the Company will produce during November was set at 60,483 m3 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 Sm3 / 14,929 Mcf of gas was produced - an average of 60,390 Sm3 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 €300,000.
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 m3 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 m3 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."
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