Ascent Resources names new CEO, expands into Cuba

Onshore oil and gas company Ascent Resources appointed Andrew Dennan as its chief executive officer on Tuesday as it announced the first acquisition under the group's strategy of international expansion.

Ascent said Dennan, formerly chief financial officer at Coro Energy, will take on the role of CEO with immediate effect, while his predecessor, John Buggenhagen, a US citizen, will step down from the board because of the restrictions that might be placed on him as a result of the company's new Cuban expansion.

The AIM-listed group agreed to purchase Cuba-focused outfit Energetical via the issue six million new ordinary shares to the selling shareholders with a further £450,000 of deferred consideration payable upon execution of production sharing contracts covering the 9B Block.

Of the latter amount, £350,000 will be satisfied by the issuance of further shares.

Chairman James Parsons said: "We see here, despite the recent market turmoil and oil price collapse, the unique ingredients for a new, highly material, growth trajectory across oil, gas and mining when the cycle turns.

"We are therefore positioning Ascent as an advantaged platform for countercyclical acquisitive growth with a focus on low-cost production, manageable initial capital commitments and near term re-rate potential."

The group also issued 623,777 new ordinary shares on Tuesday at a price of 3.5p to a previously contracted professional advisor in lieu of fees.

Elsewhere, Ascent said it would assess the merits of litigation versus developing its Petisovci gas project in Slovenia collaboratively with the government and its partners after the project's funder has elected to withdraw from further discussions.

As of 1030 BST, Ascent shares had slumped 13.55% to 3.35p.