£7 million loan facility

RNS Number : 8423M

Ascent Resources PLC

12 May 2015

 

Ascent Resources plc

("Ascent" or "the Company")

£7 million loan facility

The Board of Ascent is pleased to announce that it has secured a £7 million loan facility (the "Loan") for general corporate purposes with Henderson Global Investors Limited ("Henderson").

The Loan can be drawn at any time from signing to 30 June 2016 at the discretion of Henderson. The Loan accrues interest at the rate of 7.5% per annum on the amount drawn and this is added to the amount of the Loan. The Loan is subject to a drawdown fee of 1.75% per tranche which is deducted from the funds advanced. The Loan is also subject to a repayment fee of 1.25% on any amounts repaid by the Company. The balance outstanding is repayable on demand at any time.

The Loan provides the Company with funds to continue the development stage of the Petišovci Tight Gas Project (the "Project"). When combined with suitable project finance, which the board is hopeful can be finalised shortly, the Company will have at its disposal all the funds required to take the Project to first gas.

Related Party Transaction

Henderson and its associates are substantial shareholders in Ascent, holding 10.7% of the Company's issued share capital and as such Henderson is considered to be a related party of the Company pursuant to Rule 13 of the AIM Rules for Companies.

The issue of the Loan is therefore a related party transaction pursuant to AIM Rule 13. The independent directors of the Company (being Nigel Moore, Cameron Davis, Len Reece and Colin Hutchinson), having consulted with the Company's nominated adviser, finnCap Ltd, consider that the terms of the Loan are fair and reasonable insofar as the Company's shareholders are concerned.

Leonard Reece, CEO of Ascent Resources PLC said:

"I am very pleased that we have succeeded in securing this facility, which provides the Company with access to significant new funds. This underpins the Company's ability to move the Petišovci project forward with a view to early gas production."

Enquiries:

Ascent Resources plc.

Len Reece / Colin Hutchinson

Tel: [phone]

finnCap (Nominated Adviser and Broker)

Christopher Raggett / Kate Bannatyne

Tel: [phone]

 

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