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Ascent Resources Shares Rise As Development Well Goes Back Into Production

Sam Boughedda trader
Updated 5 Feb 2021

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Onshore Caribbean, Hispanic American, and European Energy and natural resources focused company, Ascent Resources (LON: AST) said on Friday that PG-11A, one of its two development wells on the Petišovci tight gas field has now been put back into production.

The company said that following recent increases in local gas prices (around a 175% rise from mid-2020 levels), and a recently observed pressure anomaly building up in the annulus and tubing at PG-11A, the joint venture partner has put the well back into production.

This is to build additional joint venture revenues and enable an evaluation of the source of the pressure anomaly and remedial action.

According to Ascent, the well began flowing on 4 February with an additional production rate equivalent to 12,000 scm/d and will be monitored over the next week.

Ascent’s second well, PG-10 is currently producing 5,000 scm/d while PG-11A was shut since December.

Ascent shares are trading 2.83% at 13.65p at the time of writing. They initially climbed to highs of 16p per share following the open.

Elsewhere, the company confirmed it remains in negotiations with the Republic of Slovenia regarding its dispute over permits for extraction of gas, to potentially settle the claim in the short term, as previously announced on 22 October 2020.

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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.