Ascent joined AIM in 2004 and has focused on developing the large Petišovci tight gas project in Slovenia. Production began in 2017, but prolonged issues with the government over permits have stopped the optimisation of this development which has consequently resulted in significantly lower than expected gas sales which have been small. With little progress being made the share price fell substantially, promoting some big changes which have seen the arrival of a new board with a brand-new strategy. Ascent is now positioned to invest in Special Sits in the energy/natural resources across the Caribbean, Hispanic Americas & Europe, focused on diversification/growth in a low oil price environment.
Cuba is one of the few remaining world-class yet largely unexploited hydrocarbon systems. This is a highly compelling opportunity as it includes six separate PSCs spread across four blocks which cover some 7,000km².
Alternative strategies are under review following the appointment of a new government in Slovenia including initiating proceedings to recover significant damages from the Government of Slovenia.
James Parsons and Andrew Dennan, new Chairman and CEO, have proven access to capital (raised £500 million in last 6 or 7 years) and are seeking out opportunities where they can work their entrepreneurial magic.
Analysis of the two project outcomes shows the potential. We initiate coverage of Ascent with a target price of 22.51p and Conviction Buy stance.
Ascent Resources is an independent oil and gas exploration and production company. The principal activities of Co. comprise gas and oil exploration and production. Co.'s oil and gas interests are in Slovenia. As of Dec 31 2016, Co.'s net attributable proven reserves were 41.00 billion cubic feet equivalent.
Align Research is a commissioned research company founded in November 2015 in order to provide the under-served smaller company space with high quality analysis. We have an initial focus on the natural resources sector, in which we see significant opportunities given the current once in a generation bear market, however all undervalued small caps (sub £100m) are considered by our team. Align was founded by industry professionals with decades of experience in the stock markets, headed up by highly qualified individuals from both fund management and analytical backgrounds.
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