Ascent begins export production from two Slovenia wells

Europe-focussed oil and gas exploration and production company Ascent Resources updated shareholders on the start of export production from the Petišovci field in Slovenia on Wednesday, confirming that it commenced export production from well Pg-10 on 2 November, with production from well Pg-11A added on 3 November.

The AIM-traded firm said both wells have been flowed together and on their own during the commencement phase, to acquire a greater understanding of their potential.

It said the maximum flow from Pg-10 during the period was 2,621 cubic metres per hour, and from Pg-11A it was 1,707 cubic metres per hour.

The maximum the company would produce during November was set at 60,483 cubic metres per day prior to production commencing.

For the first full week of activity between 6 and 12 November, a total of 422,733 standard cubic metres of gas was produced - an average of 60,390 standard cubic metres per day - along with 17,334 litres of condensate.

The company said it expected to produce around that level for the remainder of the month, with production at that level - based on average pricing for the month to date - expected to yield targeted revenue to the joint venture of close to €0.3m.

Ascent said the terms of the INA contract set an upper and lower limit on production calculated in megawatt hours.

For the first two months, those translated into a range of 58,182 to 77,577 cubic metres per day, and in the subsequent ten months of the contract, the range would be 63,031 to 82,425 cubic metres per day.

The company said it would take a decision on increasing production for the month of December once it has assessed well performance in November.

Production at such levels, assuming average rates remained reasonably stable, would make the company profitable at an EBITDA level and generate positive operating cash flow once payments for gas sales begin flowing in early January.

“We are pleased that we have successfully entered phase one of the field development plan; now that we have commenced production our focus has shifted to the planning for the re-entry and recompletion of suitable existing wells to further increase production,” said Ascent Resources CEO Colin Hutchinson.