Business
Financing Agreement with GEM
Financing Agreement with GEM.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n RNS Number : 2629S Ascent Resources PLC 14 May 2009 \n \nAscent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas\n14th May 2009\nAscent Resources plc ('Ascent' or 'the Company')\n£5m Equity Line of Credit Secured with GEM Global Yield Fund \n\nAscent Resources plc, the AIM-traded oil and gas exploration and production company, has entered into an agreement with GEM Global Yield Fund Limited ('GEM') whereby GEM has made available to the Company an equity line of credit of up to £5 million ('the Facility'). The Facility will be used to assist in funding the Company's exploration projects not covered by production revenue, and if appropriate, to finance investments in additional exploration projects that are outside the investment profile of the Ascent/San Severina asset management joint venture ('the JV') announced in October 2008. \n\nAscent Managing Director Jeremy Eng said, 'This arrangement fits well into our overall financing strategy and provides us with funding certainty and flexibility. We have an extensive portfolio of production and prospective exploration assets across Europe and this facility will assist in developing these assets. Additionally, the facility will also enable us to pursue further exploration projects not considered under our agreement with San Severina, at a time where there are distinct opportunities of acquiring distressed assets. \n\n'The JV is progressing well and we look forward to announcing significant transactions which will provide both Ascent and San Severina with equity interests in oil and gas projects primarily outside of Ascent's European focus area in the near future. These projects will underpin our partnership, in which San Severina aims to invest an initial €100 million in oil and gas producing, appraisal or development projects.' \n\nUnder the terms of the Facility, the Company is able to make draw downs of cash, at times of its choosing, by issuing new ordinary shares to GEM. The equity line is available for three years from 13 May 2009 and draw downs cannot be called by GEM. The Company...