Ascent Resources descends as Cadogan walks away

Shares in Ascent Resources lost more than two-thirds of their value after the company failed to agree takeover terms with suitor Cadogan Petroleum, which did not share Ascent's view of the value of its Petišovci asset in Slovenia.

Ascent said that its view of the value of the company was "considerably in excess of that contained in the preliminary approach received from Cadogan", which understandably made negotiations difficult.

The AIM-listed company also said it had yet to receive a decision regarding the integrated pollution prevention and control (IPPC) permit it needs to construct a new gas treatment works on the Petišovci field.

It still anticipates award of the permit before the end of the half-year, though admitted there was no guarantee the decision will be favourable to Ascent.

As a back-up option in case the IPPC is not forthcoming, Ascent said it had continued "positive discussions" to achieve first gas without its own treatment works, adding to management's confidence that first gas will be achievable this calendar year.

Ascent shares returned to the familiar level from the last few months, having enjoyed only a short-lived spike up above 6p for just a few days earlier this wee, down 69% on the day to 1.8p.