Business
Onshore US Gas Investment, New Funding &TVR
Onshore US Gas Investment, New Funding &TVR.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n\nThis announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (\"MAR\"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.\n \n23 April 2024\nAscent Resources plc\n(\"Ascent\" or the \"Company\")\nOnshore US Gas Investment, New Funding, Board Changes, Director Dealings and Total Voting Rights\nAscent Resources Plc (LON: AST) is pleased to announce it has made an investment into a private US holding company, GNG Partners LLC, that has been formed to acquire onshore US midstream gas distribution and processing facilities which includes helium purification and liquefaction. This is the first shaping move for the Company following a period of deal origination / screening and the recent ECT claim distribution which cements the Company's new forward US onshore gas and helium strategy. The Company is also pleased to announce that, to fund the investment, it has raised gross proceeds of approximately $1.7 million via an equity fundraise and loan note issue, further details are set out below.\nJames Parsons, the Company's Chair, commented:\n\"We are delighted to share our forward strategy for the business, centred around the highly profitable US onshore gas markets and the short supplied, high value and exponentially growing global Helium market. Helium is a key requirement for many aspects of modern life including medical devices, super computers and data centres. We also expect a significant increase in demand for natural gas in the US and elsewhere to generate electricity to feed data centres and to power the artificial intelligence revolution.\nOur initial investment in GNG and strategic relationship with American Helium provides Ascent with access to a sizeable midstream business in a safe jurisdiction with significant upside, alongside potential future equity upstream production and operations. The world class GNG and American Helium teams are highly synergistic with Ascent's executive and we look forward to success together.\nSimultaneous to this first shaping move post the recent ECT claim distribution, and with a view to prepare for our new US onsh...