LONDON (ShareCast) - (ShareCast News) - Europe-focussed oil and gas exploration and production company Ascent Resources confirmed on Friday that export production has commenced from the Petisovci field in Slovenia, to INA in Croatia.
The AIM-traded firm said the recertification of the pipeline had been processed by the Croatian government, and on 2 November well Pg-10 was turned on, and gas flowed for the first time from the Petisovci field to the INA processing facility at Molve in Croatia.

In accordance with the commencement plan, production from Pg-11A was being added later on Friday morning.

Ascent has been involved with the Petisovci concession for more than ten years, and around €45m had been invested to bring the project to the current stage.

The commencement of export gas production marked a "milestone" for the company and the project, Ascent's board said.

It said it had been made possible following more than two years of "close cooperation" among the joint venture partners, and with INA.

"Significant operational and procedural obstacles have been overcome to bring this project to fruition to the benefit of all parties and the economies in both countries," the board explained in its statement.

The initial delivery of gas triggered the commencement of the previously-announced contract with INA, which has a minimum duration of one year.

Ascent said the supply to INA was expected to "fully utilise" all production from Pg-10 and Pg-11A.

Its focus for the next year would turn to planning for the re-entry and recompletion of suitable existing wells, it said.

At the same time, Ascent said it was continuing to work to have the IPPC Permit issued as final, after which it would seek to build its own processing facility.

Additionally, it explained that it would look for "other attractive opportunities" in the region from the position of being a profitable and cash generative company.

"We are very happy to be finally exporting gas production from the Petisovci field," said CEO Colin Hutchinson.

"We thank all of our employees, investors and advisers who have contributed to the project over the years."

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