Business
Raises GBP17 million
Raises GBP17 million.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n \n\n\n\n\n\nRNS Number : 1390D Ascent Resources PLC 17 March 2011 \n \n\nAscent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas\n17 March 2011\nAscent Resources plc ('Ascent' or 'the Company')\nPlacing to raise £17 million to develop Slovenian/Hungarian gas project\n \nAscent Resources plc, the AIM listed oil and gas exploration and production company, announces that it has raised £17 million, before expenses, by way of a Firm Placing of 100,000,000 New Ordinary Shares at a price of 5p per share and a Conditional Placing of a further 240,000,000 New Ordinary Shares at a price of 5p per share (together the 'Placing'). The funds raised will primarily be used to advance the Company's flagship Petišovci/Lovási/Ujfalu project, through the drilling and completion of the Pg-11 sidetrack, the Pg-10 and Ujfalu-III wells, and capitalise on the areas P50 estimated gas in place of 412 Bcf..\n \nAscent's Managing Director, Jeremy Eng commented, \"With the finance in place from a series of high quality institutional investors, we can rapidly advance the Petišovci/Lovási/Ujfalu project area through the implementation of the three well campaign, which we believe will unlock the project areas potential, allow us to reach operating cash generation and capitalise on the strong pricing environment for European gas. Recent results from the Pg-11 well highlighted the area's prospectivity with the six middle Miocene reservoirs, all gas bearing and revealed that the Lower Miocene Karpatian reservoir was potentially naturally fractured and could contain additional resource potential of over 100 Bcf., on top of RPS's 412 Bcf. P50 estimates. We are looking to implement the drilling campaign next month, starting with the Pg-11 sidetrack and thereafter expect strong news flow as we look to unlock the value of our assets.\"\n \nThe Firm Placing has been arranged using the authority granted to Directors at the Company's annual general meeting held on 28 June 2010. The Conditional Placing remains subject to shareholder approval at a General Meeting convened for 6 April 2011. \n \nThe New Ordinary Shares will, following allotment, rank pari passu with the Existing Ordinary Shares. Application will be made for the New Ordinary Shares to be admitted to trading on AIM. It is expecte...