12th May 2015 10:46
LONDON (Alliance News) - Ascent Resources PLC Tuesday said it has secured a GBP7 million loan facility with Henderson Global Investors Ltd, money it will use to continue developing the Peti?ovci Tight Gas Project.
The gas project developer said the loan can be drawn at any time until the end of June 2016 at the discretion of Henderson, and accrues interest ay 7.5% a year. The loan is also subject to a drawdown fee of 1.75% per tranche which is deducted from the tranche that's drawn. It also has a repayment fee of 1.25%.
"When combined with suitable project finance, which the board is hopeful can be finalised shortly, the company will have at its disposal all the funds required to take the project to first gas," it said.
Henderson is a shareholder in Ascent and has a 10.7% stake.
The company has been looking for farm out partners to help it develop the Peti?ovci field to its full potential.
"The board has been impressed with the calibre and financial standing of the organisations expressing interest. In the opinion of the board all the organisations still remaining in the process are satisfied with the technical aspects of the Peti?ovci project and have the financial resources to see a deal through. We believe this not only validates the asset, but also makes its commercialisation more likely. Further announcements will be made on a farm-out transaction as the process develops," the company said Tuesday.
Ascent also reported a net loss of GBP5.6 million for 2014, wider than the GBP3.6 million net loss it reported in 2013 when it had booked GBP1.4 million in finance income as it realised foreign exchange movements. In 2014, it adjusted the equity reserve on loan note variation by negative GBP1.95 million.
The company isn't yet earning any revenue and costs were broadly stable at GBP1.9 million.
Ascent Resources shares were down 2.1% at 0.220 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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