Ascent Resources moves closer to production in Slovenia

Ascent Resources was heading towards production at its Slovenian asset on Wednesday, with the board updating the market on its three possible routes to first gas.

The AIM-traded oil and gas exploration and production company said its long-term goal was to clean the gas from the Petišovci field to supply into the country's national grid.

As previously announced, an IPPC permit is required for the construction of such a facility, and Ascent said it was in the final stage of the process, which began when the application was submitted in June 2014.

It was going through an appeal process in the courts, which was initially expected to be completed by September, though the company now anticipated it would be heard by the court earlier, with the permit being awarded before the end of the second quarter.

There were two other potential routes to market, the first being outsourcing gas processing to a third party, which would not be dependent on an IPPC permit. Ascent said it remained on track to have a final update on the option by the end of the first quarter.

Its final route to market was via a disused methanol plant located next to the Petišovci field, which was sold to US Methanol earlier in February. Ascent held talks with that company during December, with a view of supplying gas to a re-commissioned methanol plant, which would also negate the need for an IPPC as the gas could be in an untreated form.

"We are pleased to be making substantial progress with all three potential routes to market, which gives us good reason to be optimistic that the Company can achieve its prime goal of first gas during this calendar year," said interim CEO Colin Hutchinson.

Ascent said its preferred initial route to market was the second, joint venture option, though the IPPC was still essential for the production of higher volumes of gas.