Business
Signature of MOU on Further 3 Cuban Licences
Signature of MOU on Further 3 Cuban Licences.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n \n \n RNS Number : 4041L\n Ascent Resources PLC\n 30 April 2020\n \n \n \n \n Ascent Resources plc\n \n \n (\"Ascent\" or the \"Company\")\n \n \n Signature of MOU on Further 3 Cuban Licences\n \n \n Issue of Equity\n \n \n \n \n \n 30 April 2020 \n \n \n Ascent Resources Plc (LON: AST), the \n onshore Caribbean / Hispanic American and European oil and gas company,\n is pleased to announce the execution of a binding Memorandum of Understanding ('MOU') directly with the Cuban national oil and gas company ('CUPET'), securing exclusive rights to three additional onshore licences.\n \n \n Highlights\n \n \n - Signature of binding MOU with CUPET granting exclusive rights to negotiate Production Sharing Contract ('PSC') terms on three additional onshore licences\n \n \n - Issue of equity raising gross proceeds of £212,500 at nil discount to fund the initial technical work\n \n \n Background\n \n \n On 14 April 2020 the Company announced its first acquisition in its wider international strategy with the acquisition of an exclusive MOU on Block 9b, a producing onshore Cuban oil licence. This licence, located on the North coast of Cuba, contains the onshore Majaguillar and San Anton fields and is currently producing 190bbls/day from three wells. \n \n \n The Company also announced that it viewed Cuba as one of the last remaining untapped hydrocarbon provinces of scale and that it was in negotiations with CUPET regarding a variety of other onshore blocks.\n \n \n Memorandum of Understanding\n \n \n The Company has now signed a binding MOU with CUPET granting exclusive rights for six months to negotiate multiple Production Sharing Contracts ('PSC') over the onshore Blocks 9a, 12 and 15. This is in addition to the MOU on Block 9b recently secured via the recent purchase of Energetical Limited.\n \n \n The combination of Blocks 9a, 9b, 12 and 15 positions the Company with exclusive negotiating rights to potentially one of the largest non state owned, onshore Cuban portfolios. The portfolio provides a blend of existing production for low risk redevelopment with significant upside potential for both appraisal and exploration. The portfolio is consistent with the Company's strategy of counter cyclical acquisitive growth with a focus on low cost production, manageable initial capital commi...