Ascent Resources Plc, an European focused, independent oil and gas company, has a balanced portfolio of projects ranging from revenue generating production projects, low-risk development and redevelopment projects, to high-return appraisal and exploration projects. Headquartered in London, the company conducts its operations primarily onshore in five western and central European countries: Italy, Switzerland, The Netherlands, Hungary, and Slovenia.
The European onshore focus strategy has provided the company with a range of low-cost oil and gas projects, well-developed infrastructure, and a stable legal and political framework. Doing business right here in Europe, the company, an operator for most of its projects, is able to utilise local operating entities maximising their expertise.
Shares in the company (AST) are quoted in LSE’s AIM sub-market and were at 3.63p as of 8 June 2010. Although priority is now on reserve growth over production, 2010 is expected to be cash flow positive. The company relies on its highly experienced management team to provide a solid platform to grow and generate value for shareholders.
Ascent Resources uses a combination of debt and equity to fund its development projects, but farms out exploration projects to mitigate risk. The company currently has six development and redevelopment projects, four appraisal projects, and five exploration projects. The utilising modern exploration and development techniques of 3-D seismic has provided 100% success in the company’s last 4 wells.
All the company’s development projects involve shallow, conventional, either oil or gas, reservoirs that require relatively low production costs. Two redevelopment projects mainly concern the recovery of the remaining reserves that had been previously developed and later were in production but probably without the benefit of using 3-D seismic.
Appraisal projects center on prior discoveries that are never fully developed. In many cases, appraisal wells are drilled to confirm the development of these discoveries. Two of the company’s five exploration projects are multiple gas plays, which are a bright spot, considering there is a strong demand for gas production in the market .
The scale of its portfolio has kept the company on an active footing and it has gotten a significant amount of work scheduled across the portfolio for 2010.