5th Jul 2016 09:00
LONDON (Alliance News) - European oil and gas exploration production company Ascent Resources PLC on Tuesday said the first of two agreements required to progress its alternative route to market has been agreed and is ready for signing, noting it continues to expect gas production by the end of the year.
This comes after a month after Ascent said it was hoping to find a solution to the problems it has encountered trying to secure a integrated pollution prevention & control permit (IPPC) for the gas treatment plant it wants to build in Slovenia.
Ascent is determined to accomplish its goal of delivering gas in 2016 from the field in Slovenia through an alternative route to market that is independent of the traditional IPPC application process because it believes it is "cheaper and quicker".
New regulations were introduced in Slovenia after Ascent applied for the IPPC, resulting in the Administrative Court sending the application back to the Slovenian Environment Agency, arguing the application needed to take into account the new regulations that had been brought into force.
Ascent said it still views the installation of a gas processing plant in Slovenia as a long-term route to market, but is pursuing an alternative route to allow it to begin commercial gas sales in 2016.
On Tuesday, the first of the two agreements required for the company to progress its alternative route to market has been formally agreed, having previously been in "agreed form".
"All of the significant commercial issues in the second contract have now been agreed by the project group and the process of obtaining approval from the respective boards has begun. The intention is to sign both agreements together and provide a further update to shareholders at that time," the company said in a statement.
However, Ascent noted that, despite the delays in achieving formal sign off, it is confident that it remains on track to produce gas by the end of the year.
Shares in Ascent were up 9.2% at 0.737 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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