London-listed Ascent Resources (LON:AST ) has today expanded on details of its recently announced expanded international strategy in the form of a corporate presentation.
The oil & gas exploration firm, formerly only European-focused, told investors in March of its intention to also expand its presence across the Caribbean and Hispanic America region.
The company will implement a refocused strategy with the objective of spurring business growth through identifying and securing ‘special situations’ across the globe.
The region was identified by the group as highly prospective for oil and gas but also as a place where its new team and existing relationships could “add value for shareholders.”
The international expansion follows a management overhaul which took place in February. The group said at the time that a new team would pave the way for a refocused strategy to grow the company.
Ascent said this morning that it has now established a highly experienced team poised to take the group forward with individuals “highly skilled” in capturing these special situations.
Ascent Resources were trading 7.14% higher at 3p during Friday afternoon trading.
The group’s first acquisition under a new strategy occurred last month after it snapped up Energetical, a UK firm with exclusive rights to secure a production sharing contract on an onshore Cuban oil licence.
Ascent have described their entry into Cuba “a very special” situation given that it remains one of few remaining world-class, yet largely unexploited, hydrocarbon systems, it says.
The company has cited the energy demand in the region and views Cuba as “a unique first mover opportunity” given its low fiscal take and low cost production amongst other factors.
At present, Cuba produces 45,000 bopd and 100mmscf/d, which makes up 50% of domestic demand, yet the market remains “hugely under-explored,” Ascent says in the presentation.
The company is now reviewing potential acquisitions to develop a broad Cuban portfolio across oil and gas and potentially mining given that Cuba has the fifth largest nickel reserves.
The group’s entry into the region comes six years after Cuban legislature approved a foreign direct investment law allowing greater transparency and majority foreign ownership.
Meanwhile, the group said it is poised to launch a similar revised strategy for its Slovenian gas asset.
Ascent said it continues to advance its Petišovci project in Slovenia, of which it holds a 75% interest, whilst it looks towards developing growth opportunities elsewhere in Europe.
"As the oil and gas industry moves deeper into this period of profound change driven by the energy transition, quality opportunities present themselves for nimble, well-financed micro-cap platforms,” Executive Chairman, James Parsons previously stated.
You can find this morning’s corporate presentation, ‘Investing in “Special Situations”: Energy & Natural Resources across the Caribbean, Hispanic Americas & Europe’ here.
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