27th Aug 2019 15:07
(Alliance News) - Ascent Resources PLC on Tuesday said it is considering extending its Slovenian concession, despite permitting problems in the country.
Ascent wants to extend the licence for the Petisovci gas field beyond the current deadline of 2022, alongside the actual holder of the licence, Geoenergo.
The company also said it and its partners are looking into ways to develop the field in a way that would not require hydraulic simulation, and it may look at other drilling opportunities or re-enter existing wells.
Ascent has also cut monthly cash outflow by over 50%, after new management took over the company. Former Chief Operating Officer John Buggenhagen became chief executive at the end of July, replacing Colin Hutchison.
Ex-Chair Cameron Davies also stepped down, to be replaced by Louis Castro.
The firm is also reprocessing data from a 3D seismic survey purchased between 2008 and 2009 for Petisovci, to help find reserves on the flanks of already producing areas.
Buggenhagen said: "Looking forward, we plan to work with our partners in Slovenia to increase production through new conventional drilling opportunities as well as options to re-enter existing reservoirs to capture additional reserves in the concession area using the newly reprocessed 3D seismic to find stratigraphically trapped reserves on the flanks of the large already producing structures in the area."
Ascent is also preparing to sue Slovenia for damages of up to EUR50 million, and is preparing litigation finance.
In mid-June, the Slovenian government said they required a full environmental impact assessment for the stimulation of the Pg-10 and Pg-11A wells on the Petisovci project, and the damages would cover money spent on wells as well as the loss of future value.
Shares were 11% lower on Tuesday in London at a price of 0.20 pence each.
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