Business
Export gas production update
Export gas production update.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n \nRNS Number : 4926W Ascent Resources PLC 15 November 2017 \n\nAscent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas\n \n15 November 2017\nAscent Resources plc\n(\"Ascent\" or \"the Company\")\n \nExport gas production update\n \nThe Board of Ascent Resources plc (AIM: AST), the European focused oil & gas exploration and production company, would like to update shareholders on the start of export production from the Petišovci field in Slovenia. \n \nThe Company commenced export production from well Pg-10 on Thursday 2 November 2017 and production from well Pg-11A was added on Friday 3 November. Both wells have been flowed together and on their own during this commencement phase to acquire a greater understanding of their potential. The maximum flow from Pg-10 during the period has been 2,621m3 per hour / 2.2 MMscfd and from Pg-11A it has been 1,707 m3 per hour / 1.4 MMscfd. The maximum the Company will produce during November was set at 60,483 m3 per day / 2.1 MMscfd prior to production commencing. \n \nFor the first full week of activity between 6 and 12 November, a total of 422,733 Sm3 / 14,929 Mcf of gas was produced - an average of 60,390 Sm3 per day / 2.1 MMscfd - along with 17,334 litres / 110 barrels of condensate. The Company expects to produce around this level for the remainder of this month. Production at this level, based on average pricing for the month to date would yield targeted revenue to the joint venture of close to €300,000.\n \nThe terms of the INA contract set an upper and lower limit on production calculated in megawatt hours (MwH). For the first two months, these translate into a range of 58,182 to 77,577 m3 per day / 2.1 MMscfd to 2.7 MMscfd. In the subsequent ten months of the contract the range is 63,031 to 82,425 m3 per day / 2.2 MMscfd to 2.9 MMscfd. The Company will take a decision on increasing production for the month of December once it has assessed well performance in November. \n \nProduction at these levels, assuming average rates remaining reasonably stable, will make the Company profitable at an EBITDA level and generate positive operating cash flow once payments for gas sales begin to be received in early January 2018.\n \nColin Hutchinson, CEO of Ascent, commented: \n\"We are pleased t...