Ascent Expects First Gas to Croatia in 1Q

London AIM-listed Ascent Resources says it is on schedule to deliver first gas from its Petisovci project in the northeast corner of Slovenia by March 2017, thereby satisfying a supply contract it concluded six months ago with Croatia's INA.

Well PG-10 was recompleted, Ascent said January 6, but the bottom plug could not be opened. Some gas was flowed for a short period nonetheless, but Ascent concluded that more holes would be needed to satisfy its supply contract. “This work is underway,” said Ascent: “Once this work is completed, a formal well test will be undertaken.”

Ascent's Slovenia asset (Credit: Ascent)

A gas flowline from PG-10 to a gas process unit has been laid and is planned to be connected later this month, following completion of the flow test. Contractors will then build the connection with the export pipeline to allow the gas to flow to Croatia for sale, said Ascent: “All other work programmes are progressing in line with expectations and we look forward to the production of gas before the end of 1Q 2017.”

Petisovci lies in the NE corner of Slovenia between Hungary and Croatia.  Ascent as operator, partnered by Slovenia's Geoenergo, says it holds substantial tight gas as well as shallower conventional oil and gas. Independent auditors have estimated P50 gas in place at Petisovic at 13bn m³. Ascent's initial supply agreement with INA lasts 12 months while it tests the productivity of the wells and the responsiveness of the gas reservoirs, after which it can be renewed; gas is to be sold indexed to the day-ahead CEGH (Central European gas hub) price.

Petisovci field is 5km from the Croatian border and the location of the INA-operated Medimurje gas fields. Producer and refiner INA is majority-owned by Hungary’s Mol but Croatia is reasserting its wish to regain control of the business. 

Mark Smedley