Ascent has undergone significant change following the appointment of the new Board of Directors and executive team who took their seats in March and April this year. The change has included the planned introduction of a Cuban portfolio, taking concrete steps to sort out the Slovenian legacy asset and, most importantly, the initiation of a countercyclical growth strategy focused on identifying Special Situation opportunities.

Cuba Market Entry

The Company announced in April a broadening of its portfolio with a new market entry into Cuba with the acquisition of Energetical Limited securing the MOU to onshore Block 9B which contains the producing Majaguillar and San Anton fields. This initial action was quickly followed with a further signature of a binding memorandum of understanding directly with The Cuban National Oil Company ('CUPET'), over onshore Blocks 9A, 12 and 15 which represent over 7,000km² of exploration acreage with each license having had prior oil shows or discoveries made. This presents the Company with a unique position to enter the highly prospective Cuban upstream space centred around a production lead strategy initially focused on 9B and dovetailing with significant exploration upside. The Company is also reviewing potential investments in battery metals mining noting that Cuba has one of the largest deposits of Nickel worldwide. Nickel, as a battery metal, has the major advantage of helping to deliver high energy density and greater storage capacity at lower cost and with continuing advancements in nickel battery technology the metal is positioned to have an increasing role in global energy storage systems.

Slovenia

During the period, the new Board conducted a technical and economic review of the Petisovci asset and concluded that i) Forward gas prices are sufficiently high for the development to be cash generative; ii) Continued material production from the tight gas project would require regular stimulation activity; and iii) Further stimulation of PG-10 and PG-11A wells should have a material positive impact on production levels. Following the submission of a proposal by the Company, the JV partner has expressed willingness to enter into discussions to restructure the JV arrangements for the benefit of all parties. Following the Administrative Court of the Republic of Slovenia's recent confirmation of its decision to require an Environmental Impact Assessment ('EIA') in order to re-stimulate the PG-10 and PG-11A wells, a new technical team has been contracted to prepare a detailed stimulation plan and updated Field Development Plan. These plans will form the basis of an EIA application in due course.

The Company is also progressing its legal claim against the Republic of Slovenia, to be brought under the Bilateral Investment Treaty and Energy Charter Treaty. The Company instructed a specialist legal advisor to advance towards International Arbitration which resulted in the serving of a Notice of Dispute to the Republic of Slovenia which formally sets out the breaches Slovenia have made under the BIT and ECT.

Corporate

During the period in review the Company has successfully restructured its financing arrangements with RiverFort with both the cancellation of the Equity Swap Agreement and reprofiling of the short term loan repayable on demand to a convertible instrument at a premium to the prevailing share price and maturing in 2022. This provides the Company with the runway to resolve its position in Slovenia and develop the business outside of Slovenia. The Company has also successfully raised new equity in support of their appointments and to advance their new initiatives in Cuba. Post period in review a further financing package has been secured which will allow the company to accelerate its Special Situations strategy which should see Ascent add further commodity and geographic diversification as well as hopefully provide for a pathway to material cash generation within 12 months of a transaction.

In March and April of this year, the prior Board of Directors exited and James Parsons took the seat of Executive Chairman, Andrew Dennan was appointed as Chief Executive Officer and Ewen Ainsworth and Leonardo Salvadori both joined as Non-Executive Directors of the Company. Post period in review the Company has also announced further changes to its Board and Senior Executive team with Leonardo Salvadori moving from his Plc Non-Executive Director position to step up and join the executive team as Technical Director. Two new appointments have been announced with Mr Malcolm Graham-Wood joining as Non-Executive Director and Mr Stephen Birrell joining the Company as Independent Non-Executive Director, both effective as of October. The Board would then be composed of two Independent Directors and a majority of Non-Executives as suggested by the Quoted Companies Alliance Corporate Governance Code, the corporate governance code that the Company has chosen to adopt.

KeyFacts Energy:   Ascent Resources Slovenia country profile   l   Ascent Resources Cuba country profile