Petisovci progress slower than expected, says Ascent

Europe-focussed oil and gas exploration and production company Ascent Resources updated the market on its progress at the Petišovci project in Slovenia on Wednesday, with production from Pg-10 continuing “satisfactorily”, with the product being sold to a local industrial customer through partner Geoenergo.

The AIM-traded firm said the final downhole portion of the operations to prepare Pg-11A to produce and sell gas had taken “slightly longer” than initially anticipated.

In order to remove the bottom plug it was necessary to procure a coiled tubing unit from outside of Slovenia, which was expected to be on site in the next week.

That work was then expected to take a few additional days.

As the well was fully cleaned up following the extended flow test in 2012, once the work-over is complete an additional clean-up and flow test would not be required, the Ascent board confirmed.

Therefore, once ready the company would “immediately” connect the well to the infrastructure, enabling gas to be produced for sale.

At the INA, the company said the completion of the necessary infrastructure to deliver gas was progressing well.

The line from the CPP to the export line had been successfully refurbished and pressure-tested, and the board now expected to receive the operational certificate from the Slovenian authorities in July.

Refurbishment of the separation equipment at the CPP was also at an “advanced stage”, the board said, and the refurbished separator was due to be installed in July.

That was a few weeks later than had been originally planned due to the late delivery of one of the component parts, Ascent claimed.

The company’s customer, INA, was due to complete the recertification of its pipeline on the Croatian side of the border in time to receive Petišovci gas, which Ascent now expected to commence at the end of July.

“While any slight delay is frustrating, it is not unusual for a project of this type,” said CEO Colin Hutchinson.

“I am pleased with the progress that has been made and look forward to increasing our gas production through supply to INA and bringing Pg-11A online in the near future.”