Ascent Resources sold its 100% owned Swiss subsidiary, PEOS AG (‘PEOS’), to eCORP Europe International Ltd. (‘eCORP’), for a consideration of €8m, while retaining various farm-in options on certain potentially successful discoveries. Out of the total consideration, €5m are payable immediately and €3m are payable on completion of agreed commercial conditions. Ascent keeps an option to participate in the potential upside from any discovery with a right to acquire 45% of any conventional discovery from the Hermrigen 2, Essertines 2 and Linden 2 appraisal wells by paying 45% of drilling costs post any discovery and a right to 22.5% of any discovery from certain conventional prospects by paying 22.5% of the drilling costs post discovery – both with no obligation to participate. eCorp irrevocably commits to drill the Hermrigen-2 appraisal well and permitting is underway for drilling in Q4 2010. The Swiss assets are estimated by Tracs International to contain gross contingent conventional resources in excess of 600Bcf of gas.

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