EnQuest disposes Slovenian as

RNS Number : 3501Y

EnQuest PLC

21 December 2010

 



ENQUEST PLC, 21 December 2010

EnQuest agrees the disposal of its Slovenian asset to Ascent Resources

Independent oil and gas production and development company, EnQuest PLC, ("EnQuest" or the "Company") has today agreed to dispose of its 48.75% interest in the Petişovci Project ('the Project') in Slovenia, in return for a 22.5% equity stake (150,903,958 new ordinary shares) in Ascent Resources plc ("Ascent").  Ascent is an AIM traded oil and gas exploration and production company.  EnQuest acquired its interest in the Project through its recent acquisition of Stratic Energy Corporation ("Stratic").  Based on Ascent's closing share price of 8.5p on 20 December 2010, the value of the shares which will initially be issued to EnQuest is £12.83m. 

EnQuest also has a nil-cost option to acquire a further 29,686,000 new ordinary shares in Ascent, subject to certain criteria related to the successful development of the Project.  The option will potentially allow EnQuest to benefit from the future success of the Project. 

On completion of this transaction, EnQuest will transfer its existing interest in the Petişovci Project to Ascent, increasing Ascent's stake in the Petişovci Concession from 26.25% to 75%.

EnQuest has committed to a 12 month lock-in and a subsequent 12 month orderly market agreement on all of its shares in Ascent, including those resulting from any exercise of the option.  In addition, Ascent has agreed to appoint Graham Cooper, EnQuest's Head of Business Development, to the Board of Ascent as a non-executive director. 

Graham Cooper, EnQuest's Head of Business Development said;

"EnQuest's strategic focus in acquiring Stratic was its interests in West Don and Crawford but this Slovenian project has further potential in its own right.  As the operator of this project and the holder of a substantial working interest, Ascent is a natural choice to take over our interest.  EnQuest still maintains exposure to the potential benefits of the Petişovci project through its ownership in Ascent and will continue active involvement, enabling us to maximise the value of this asset for EnQuest shareholders.  We very much look forward to working with Ascent's Managing Director, Jeremy Eng, and his team."

ENDS

For further information please contact:

EnQuest PLC                                                    Tel: [phone]          
Jonathan Swinney (Chief Financial Officer)
Michael Waring (Head of Communications & Investor Relations)

Finsbury                                                           Tel:  [phone]
Andrew Mitchell
Dorothy Burwell

Notes to editors

EnQuest PLC (www.enquest.com) is an independent oil & gas production and development company focused on the UK Continental Shelf ("UKCS"). Shares in EnQuest trade on both the London Stock Exchange and the NASDAQ OMX Stockholm.  EnQuest is a constituent of the FTSE 250 index and OMX Nordix Index. Its assets include the Thistle, Deveron, Heather, Broom, West Don and Don Southwest fields.  EnQuest intends to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercialising and developing discoveries, converting its significant contingent resources into reserves and pursuing selective acquisitions. EnQuest is focused on increasing production from its existing assets in its core hub areas.

Ascent Resources plc (www.ascentresources.co.uk) has a diversified portfolio of hydrocarbon exploration and development interests across five countries in Europe: Italy, Switzerland, Hungary, Slovenia and Netherlands.  Its portfolio contains a solid base of field redevelopment projects with selected exposure to exploration upside.  The portfolio is focussed on gas and with the exception of the shallow water Netherlands project, all of its projects are located onshore where operating and development costs are substantially lower than they would be offshore.  Ascent's stock code is AST-LN.

 

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