8th Apr 2019 17:11
LONDON (Alliance News) - Ascent Resources shares spiked late Monday after the oil and gas exploration company said its joint venture partners received approval from the Slovenian Environment Agency to install a processing plant at Petisovci.
Shares in Ascent Resources more than doubled Monday closing at 0.70 pence each after starting the session at 0.28p.
Ascent said it will "reserve further comment" until it has revived official confirmation from the Slovenian agency and the appeals period has elapsed.
The permit allows for the installation of a small processing facility resulting in Slovenian gas being sold into the Slovenian national grid system.
Ascent said "virtually all production" from the field is exported untreated to Croatia. According to Ascent, Slovenia imports 99.9% of its natural gas needs from Russia and elsewhere.
The company said the final award of the permit "would be very welcome" but Ascent's joint venture partners still require well permits to develop the project.
"The proper development of the Petisovci natural gas field poses no significant environmental risk and will benefit the Slovenian environment as the country switches to cleaner gas from more polluting energy sources. At the same time the project will benefit the Slovenian economy by creating jobs, investment and tax revenue. The project is also important strategically for Slovenia as it can reduce its reliance on imported energy supplies," said Chief Executive Colin Hutchinson.
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