Ascent Resources sells Perazzoli Drilling stake for €1.85 mln to free more funds for its own projects

Ascent Resources (AIM: AST) has stocked up its funds for ongoing work programmes at its projects through the sale of its 45% interest in Perazzoli Drilling for €1.85 million, while retaining the advantages that were provided by the ownership of the Italian drilling contractor through a five year service alliance.

Under the new alliance, Ascent will receive a 30% discount on €10 million of drilling services and first call on uncommitted drilling units.

The company's original 22.5% interest in Perazzoli was held through its 50% owned subsidiary Ascent Drilling Limited. Ascent then purchased a further 22.5% interest by placing 15.5 million shares to Ascent director Malcolm Groom, who held a 50% interest in Ascent Drilling.

Perazolli intends to expand operations and will thus require additional funding, which Ascent said would be too much of a burden for its own funds in view of its ongoing intensive work programmes.

“This transaction allows us to retain access to Perazzoli's drilling equipment with attractive discounts on its services and provides additional funds for use in developing our projects,” said Managing Director of Ascent Jeremy Eng.

Earlier this month, Ascent announced the commencement of the drilling of the PEN-101 well at the Peneszlek natural gas project in Hungary, targeting a Miocene gas formation within a structure defined on 3D seismic of the area. The company is also preparing to re-drill the Fontana-1 well in the Frosinone exploration permit in the Latina Valley of Italy after mechanical problems were experienced in the original well.

Today's news was met with a positive response form investors, driving shares in Ascent up 4.65%.

http://www.proactiveinvestors.co.uk/companies/news/13560/ascent-resources-sells-perazzoli-drilling-stake-for-185-mln-to-free-more-funds-for-its-own-projects-13560.html