BNP Paribas Credit Agreement

RNS Number : 3468E

Ascent Resources PLC

29 May 2012

 



29 May 2012

Ascent Resources Plc

Ascent Resources Signs BNP Paribas Credit Agreement

Ascent Resources plc ("Ascent" or "the Company") is delighted to announce the signing of a credit agreement with BNP Paribas (Suisse) SA ("BNPP") for a term loan facility totalling up to €15 million.

The agreement was signed on the 29 May 2012 and provides Ascent with the ability to draw down up to €10m immediately to fund the Petišovci field to production.

Ascent will then be able to draw down up to a further €5m, subject to certain performance criteria being met, to fund further developments on the field.

Commenting on the funding, Ascent's Chairman John Kenny said:

 "We are delighted to have secured a significant Term Loan Facility from BNPP. The facility is expected to provide us with all the necessary capital in Slovenia to recomplete both Pg-10 and Pg-11A, build the CO₂ reduction facilities as well as all the other ancillary connections and infrastructure required to get to first production. 

"We have been working hard to find the right funding mechanism to move forward in Slovenia.  This has been a thorough process, but it was important that we focused on a solution that maximised shareholder return.  Production has been delayed as a result but the dilution for shareholders has been minimised.  We look forward to working with BNPP and our joint venture partners to move swiftly towards production later this year" 

END

Background notes

i.    Ascent Resources plc is a guarantor of the loan which is secured against the assets of Ascent Slovenia Ltd as borrower.

ii.    The first €10m of the facility is repayable within 30 months from the date of signing with repayment due in 18 monthly instalments following a 12 month grace period.  Interest is payable on the outstanding loan amount at 7% over Euribor.

iii.   Drawdown under the facility is subject to the satisfaction of a number of conditions precedent and subsequent, including the delivery of certain documents and the obtaining of certain consents to the assignment by way of security to the lender of the borrower's rights under the contracts which constitute the borrower's interest in the Petišovci field.  A failure to satisfy these conditions by the stipulated dates would entitle the lender to immediate repayment of any sum drawn down under the facility and/or to terminate the facility agreement.

iv.   Ascent has agreed to grant BNPP warrants to subscribe for up to 10 million new ordinary shares in the Company exercisable at 10p a share until 31^st December 2016.

Enquiries:

Investors Scott Richardson Brown	Ascent Resources plc	Tel: [phone]
Sarah Wharry Ben Thompson	finnCap  (NOMAD & Broker)	Tel: [phone]
Press Anthony Cardew Alexandra Stoneham	Cardew Group	Tel: [phone]

 Notes

Ascent Resources plc 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.

 

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