Ascent Resources plc, the AIM quoted European oil and gas exploration and production company, updates shareholders on operations at the Petišovci concession in Slovenia.
Well Pg-11A was shut in for the month of May while the Company waited for temporary separation equipment to become available. The equipment has arrived onsite and the well has now been restarted. The performance of the well will be closely monitored over the coming period.
Total production for May was 1,066,795 cubic metres (37,673 MCF) compared to 1,191,058 cubic metres (42,062 MCF) for April 2018. Average daily production from Pg-10 for May was 1.2 MMscfd which was down from 1.3 MMscfd in April (and 1.4 MMscfd including Pg-11A). The Company is managing the production rates from Pg-10 to maximise the long-term recoverability of the well.
Total revenue to Ascent for May from gas sales for May is expected to be around €180,000, with an additional €10,000 from the sale of condensate.
The authorities have completed their review of the baseline report in relation to the IPPC Permit application. Some amendments and explanations have been requested and we are preparing our response; it is not possible to say with certainty when the permit will be finally awarded but the Company believes that there are no reasonable grounds to delay the award any further.
Colin Hutchinson, CEO of Ascent Resources plc commented:
"I am pleased that production has recommenced from Pg-11A and we hope that an acceptable flow rate can be maintained. In relation to the permit, we believe we have done as much as possible to aid the relevant bodies with our application and have delivered everything that has been requested and required of us. We have expressed our disappointment at the length of the process, emphasising to authorities the impact such delays have on attracting future investment to Slovenia and the consequences for the project, and we trust we are approaching the end of this process."