Ascent Resources in discussions with multiple parties following strategic review

Following a strategic review of the company back in April, natural gas company Ascent Resources has entered into discussions with several parties covering a range of different transactions aimed at keeping its head above water.

As delays at its Slovenian operations continued, Ascent has grown "increasingly frustrated" with the Slovenian Environment Agency and a perceived "lack of concrete action" from politicians.

Attempting to safeguard itself against further delays in the Eastern European nation, Ascent started to look into options such as a farm-in, a partnership, a takeover and a sale.

Ascent told investors that a number of interested companies had signed non-disclosure agreements in order to gain access to its data room and had begun to review its legal and technical data ahead of potential offers.

While Ascent assured investors that it "understands" they were interested in how its strategic review was progressing, the company chose to remain tight-lipped regarding its ongoing negotiations, but did divulge that, although there was no certainty that any of its talks would result in a completed transaction, the firm was "pleased with the progress of the strategic review to date."

Colin Hutchinson, Ascent Resources' chief executive, said, "We continue to expect a positive outcome from the strategic review but have taken steps to prolong the life of the company without the need for additional funding in the event this does not produce a positive outcome, or that outcome takes longer than expected to deliver."

Elsewhere, Ascent revealed that production dropped 20% in July to 816,490 cubic metres, bringing revenue for the month to roughly €160,000.

As of 0920 BST, Ascent shares had plummeted 44.62% to 0.40p.