UK Minnow Extends Croatian Gas Sale

UK minnow Ascent has extended the gas sales agreement with Croatian purchaser INA until May 2, 2019, allowing Ascent to reduce its banking obligations from €400,000 ($466,299) by half to €200,000, it said July 3.

It said its strategic review is making good progress but there was no announcement on the company's future. Ascent effectively put itself up for sale two months ago.

Ascent produces from the small Slovenian gas field Petisovci, close to that country's border with Croatia. Well Pg-11A there was brought back into production on June 7 and was in continuous production until June 18, producing a total 119,741 m³ of gas. The well was temporarily shut in again to allow pressures to rebuild and restarted again June 26; by June 30 it had produced a further 30,955 m³ of gas. The intention is to produce the well on an intermittent basis going forward, it said.

Total production for June was 1,027,939 m³ compared with 1,066,795 m³ for May 2018.  Average daily production for June was in line with the production rate in May. Total revenue to Ascent for June from sale of unprocessed gas is expected to be around €190,000 (about $215/'000 m³, or roughly $6/mn Btu) with an additional €15,000 to €20,000 from the sale of condensate.

CEO Colin Hutchinson said that he was pleased with the extension and looked forward to continuing this "successful relationship" with INA. Gas production and revenues for June were consistent with May and it was encouraging to have Pg-11A making a contribution.”