Ascent Resources plc and its potential partner ARB Energy LLC have identified the first 15 wells for workovers, at a cost of $100,000, on oil, gas and helium-rich leases in northern Utah.
LOAN NOTES
In May, the company conditionally acquired a 10% interest in the ARB-owned and operated leases and rights to 50% of incremental production from work-over style operations on existing wells, funded 100% by Ascent.
The companies have since reviewed the work-over opportunities for existing producing and shut-in wells.
To restart production from “multiple previously producing wells”, Ascent and ARB will instal compression units to address “high export pipeline back-pressures”, preventing the wells from producing.
The low-cost work aims to bring the first five wells back into production.
Ascent will receive its 50% interest in the increased production by way of loan notes before the acquisition completes, subject to shareholder approval to issue new shares.
If the acquisition proceeds, the loan will be extinguished and the amounts treated as joint operating agreement partner contributions to operational costs.