The UK’s Ascent Resources PLC, often in the news in Slovenia for its attempts to increase production at its Petišovci gas field, issued 214.3 million shares earlier this week at £0.0035 (0.35 pence) per share, with the offer bought by a small number of institutional investors. A fell by over 20% after the share issue from the company says the funds raised are intended to reprocess 3D seismic data in relation to the Slovenian project, as well was as to pay for compression equipment, evaluate other regional opportunities and provide additional working capital.
While the company’s shares started the month at 0.20 pence, and jumped to 0.70 pence on April 8, with news that it had received a new permit from ARSOS, the Slovenian Environment Agency, they fell by over 20% after the share issue, and – at the time of writing – stand at 0.40 pence. The shares reached an all-time high of £5.85 in August 2007.
The Petišovci project has been the subject of some controversy and heated online debate, with some investors in the company alleging in correspondence with TSN that corruption at the highest levels of the Slovenian government has prevented the firm from developing its holdings there.