The UK’s Ascent Resources, often in the news in Slovenia for its long-running and so far less than successful attempts to exploit it’s Petišovci gas field with the use of hydraulic stimulation, has announced a series of cost-cutting measures and managerial changes. As reported by Morning Star, the moves are an attempt to cut costs by 50%, and are needed because of the delays to the Slovenian project. As the website notes:
In its Slovenian operations, Ascent said it will cut the number of its employees and halt "all non-essential expenditure", including its May order of compression equipment for the Pg-10 and Pg-11A wells.
The company is also changing its CEO, with Chief Operating Officer John Buggenhagen replacing Colin Hutchinson, who will stay with company on a part-time, interim basis as a finance director.
Also leaving the company's board is Cameron Davies, retiring as chair having been a company director since 2010.
The new CEO, a geophysicist who has been working in various capacities at Ascent since January of this year, said: “we continue to pursue an appeal against the Environment Ministry in Slovenia, in conjunction with our joint venture partner at Petišovci, and we are prepared to initiate legal action against the Republic of Slovenia, who we believe is in breach of European Union law.”
Shares in the company were down 12% at 0.26 pence each in London at the close of trading, Monday.