Business
Disposes of interest in Peraz
Disposes of interest in Peraz.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n RNS Number : 4474H Ascent Resources PLC 22 February 2010 \n \n\nAscent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas\n22 February 2010\nAscent Resources plc ('Ascent' or 'the Company')\nDisposes of interest in Perazzoli Drilling and Places shares with Ascent Director\n \nAscent Resources plc, the AIM-traded oil and gas exploration and production company, has agreed to sell a 45% interest in Italian drilling contractor Perazzoli Drilling srl ('Perazzoli') for a cash consideration of €1.85 million. The Company's original interest was purchased to provide priority access, and ensure optimal contract terms for drilling services. These advantages will be retained through a five year service alliance with Perazzoli, which provides for a 30% discount on €10 million of drilling services to Ascent and first call on uncommitted drilling units. Perazzoli owns three drilling units including a state-of-the-art HH-200 unit which provides low environmental impact drilling capability.\n \nThe Company's original 22.5% interest in Perazzoli was held through its 50% owned subsidiary, Ascent Drilling Limited ('Ascent Drilling'), which was owned jointly with Ascent Director Mr Malcolm Groom. To facilitate the transaction, Ascent agreed to purchase Mr Groom's 50% interest in Ascent Drilling and therefore a further 22.5% interest in Perazzoli by placing to him, 15,529,981 Ascent shares, providing Ascent with a 45% interest in Perazzoli. These shares, when issued, will be priced at 5.105p each representing a 9% discount to the 15 day average trading price preceding 26 January 2010, which is the pricing mechanism used for Ascent's Equity Line of Credit with GEM Global Yield Fund.\n \nJeremy Eng Ascent's Managing Director said, \"The sale of our interest in Perazzoli, whilst retaining the benefits that the ownership of a minority interest brought, is an excellent outcome for Ascent. Perazzoli is aiming to expand its operations and will therefore require additional funding which, given the intensive work programmes being conducted on our portfolio of oil and gas assets, would I believe, not be the best use of our shareholders' funds. \n \n\"This transaction allows us to retain access to Perazzoli's drilling equipment with attractive discounts on its services and provides ...