Ascent Resources extends INA gas sales agreement to May 2019

European oil and gas exploration and production company Ascent Resources reported on Tuesday that the gas sales agreement, under which untreated gas is sold to INA in Croatia, has been extended to 2 May 2019.

The AIM-traded firm said that, as a consequence of the extension, the required bank guarantee had reduced and the amount which Ascent was obliged to hold on restricted deposit had been reduced to €0.2m from €0.4m.

Well Pg-11A was brought back into production on 7 June, Ascent reported, with the well in continuous production until 18 June, during which it produced a total of 119,741 cubic metres of gas.

The well was temporarily shut in again on 18 June to allow pressures to rebuild.

Ascent said the well was restarted again on 26 June, and up to 30 June it produced a further 30,955 cubic metres of gas.

The company’s intention was to produce the well on an intermittent basis going forward.

Total production for June was 1,027,939 cubic metres, compared to 1,066,795 cubic metres for May.

Ascent said average daily production for June was 1.2 MMscfd, which was in line with the production rate in May.

Total revenue to Ascent for June from gas sales was expected to be around €0.19m, with an additional €0.015m to €0.02m from the sale of condensate.

The company also said it would complete and submit the amendments requested from the Environment Agency by the end of this week, adding that it hoped the agency would review the amendments and award the IPPC Permit without any further delay.

The Environment Agency had requested “some additional information” in relation to Ascent’s permit to workover Pg-10 and Pg-11A.

Ascent said it was preparing its responses, also for submission at the end of this week.

On its strategic review, the board said the process had been ongoing since 17 April, adding that it was “pleased” with progress made to date, and hoped to update the market in due course.

“I am pleased that the gas sales agreement has been extended for a further period and we look forward to continuing this successful relationship with INA,” said Ascent chief executive Colin Hutchinson.

“Gas production and revenues for June were consistent with May and it was encouraging to have Pg-11A making a contribution.”