Business
Signing of Gas Sales & Purchase Agreement
Signing of Gas Sales & Purchase Agreement.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n \nRNS Number : 7630F Ascent Resources PLC 01 August 2016 \n\n1 August 2016\nAscent Resources plc\n(\"Ascent\" or \"the Company\")\n \nSigning of Gas Sales & Purchase Agreement \nAcquisition of Trameta d.o.o.\nand\nNotice of General Meeting\n \nAscent is pleased to report that, further to its announcement of 5 July 2016, the Company, together with its partners in Slovenia, have signed the conditional agreements necessary to allow commercial gas production to commence as early as January 2017.\n \nThe new route to market uses an existing production pipeline from the Petišovci field in Slovenia to the Croatian border where the raw gas will be sold.\n \nThis route is independent of the IPPC Permit. No further regulatory approvals are required for gas production to commence using this route to market. Additionally, the funding required to commence production is materially lower than would be the case if we were required to construct a new treatment facility in Slovenia.\n \nFurthermore, the Company has entered an agreement to acquire a Company which owns access to a key section of pipeline in Slovenia in return for the issue of up to 75 million new Ascent shares plus options over a further up to 7.5 million shares at a price of 2 pence per share. As such an allotment is beyond the current authority of the Board and a General Meeting has been convened for 22 August 2016 to consider and if thought fit approve the necessary authorities to allow the agreements to become unconditional. \n \nHighlights:\n· The Company has confirmed a route to market which does not rely on the IPPC Permit with first gas expected as early as January 2017.\n· This route to market is significantly quicker and cheaper than constructing its own gas processing facility.\n· The Company has entered an agreement# to acquire a Slovenian Company which holds assets of strategic value to the project; without this acquisition this route to market would be impossible or significantly delayed.\n \nCommenting on today's announcement, Colin Hutchinson, Ascent's CEO, said:\n \n\"These agreements mark a major step forward for the Company. For the first time we have a direct route to sell our gas without relying o...