Business
Sale of Swiss Subsidiary for
Sale of Swiss Subsidiary for.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n RNS Number : 5915K Ascent Resources PLC 22 April 2010 \n \n\nAscent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas\n22 April 2010\nAscent Resources plc ('Ascent' or 'the Company')\nSale of Swiss Subsidiary to eCORP Europe International Ltd. for €8 million\nwith Retention of Farm-in Rights\n \nAscent Resources plc, the AIM-traded oil and gas exploration and production company, has sold its 100% owned Swiss subsidiary, PEOS AG ('PEOS'), to eCORP Europe International Ltd. ('eCORP'), for a cash consideration of €8 million, together with various farm-in options on certain potentially successful discoveries ('the Transaction'). \n \nOverview\n· Cash Consideration: Sale of PEOS for a cash consideration of €8 million: €5 million payable immediately, with €3 million payable on completion of agreed commercial conditions\n· Additional Consideration: Option to participate in potential upside from any discovery:\no Ascent retains right to acquire 45% of any conventional discovery from the Hermrigen 2, Essertines 2 and Linden 2 appraisal wells by paying 45% of drilling costs post any discovery - with no obligation to participate\no Ascent retains right to 22.5% of any discovery from certain additional conventional prospects by paying 22.5% of the drilling costs post discovery, again with no obligation to participate\n· eCORP irrevocably committed to drill the Hermrigen-2 appraisal well - permitting underway for drilling in Q4 2010\n· Swiss projects estimated by Tracs International to contain gross contingent conventional resources in excess of 600Bcf of gas\n· Deal validates strategy of developing a diverse European portfolio of oil and gas projects and underpins the significant value of its assets across the portfolio\n \nJeremy Eng Ascent's Managing Director said, \"This is an outstanding deal. We have realised €8 million from our investment in our Swiss assets, retained without obligation the opportunity to participate in any production opportunities from conventional reservoirs and completely removed the funding risk for these projects. This validates the time and resources devoted to our portfolio approach of developing oil and gas assets across the whole continent of Europe. Importantly, ...