20th Sep 2019 12:32
(Alliance News) - Shares in Ascent Resources PLC fell on Friday as it reported a revenue decline on lower production volumes in the first half of 2019.
Shares in the firm were 15% lower at 0.24 pence each in London on Friday morning.
Revenue in the six months to June 30 fell to GBP242,000 from GBP1.3 million and its pretax loss widened to GBP994,000 from GBP611,000.
Total production sunk to 1.8 million cubic metres of and 0.3 million litres of condensate. In the first half of last year, the company reported production of 8.6 million cubic metres of gas and 0.4 million litres of condensate.
In April, the company was granted the IPPC permit at the Petisovci gas project in Slovenia. Regulatory approval allowed the company to install and processing plant at the project.
Ascent however said that it did not receive the necessary clearance to re-stimulate the Pg-10 and Pg-11 wells at the project. Without such permits, Ascent will be "unable to develop and deliver the full potential of the deeper tight gas reservoir potential within the Petisovci field", it said.
Alongside joint-venture partners Geoenergo Doo, which has a 25% stake in Petisovci, the company will be pursuing compensation through courts.
Non-Executive Chair Louis Castro said: "In spite of the challenges faced in Slovenia, the board will continue to look for ways to capture the full value of its investment in the country. Outside of Slovenia, we are currently evaluating several attractive opportunities in the wider geographical region which offer near-term production and material reserves."
The company also said that it has completed a GBP1.1 million subscription with RiverFort Global Opportunities PCC Ltd. RiverFort subscribed for 393.0 million Ascent shares at 0.275 pence each.
RiverFort will also be issued with 43.0 million warrants at a future date.
In addition, RiverFort has provided Ascent with a USD500,000 loan, repayable on or before September 19, 2020 and with an interest at 10% per year. A further USD500,000 is also available for Ascent to withdraw, should both companies agree.
Castro said: "The need to mitigate the natural production decline from our two deep gas wells, coupled with the positive actions to diversify mentioned above, has resulted in us seeking investment and working capital."
Related Shares:
Ascent ResourcesRiverfort