Ascent Resources agrees drawdown financing facility

Acent Resources, an AIM-listed European oil and gas exploration and production company, has formally entered into a 10m pound equity financing facility with Darwin Strategic, a majority owned subsidiary of Henderson Global Investors' Volantis Capital.

Scott Richardson Brown, Finance Director said: "This new £10m facility gives Ascent access to a flexible, cost effective source of future financing when needed. The facility can be used in order to meet certain funding needs as well as to maximize the value of new and existing opportunities available to the Company, while considerably reducing future financing risk.

"This facility strengthens Ascent's ability to grow its business and the Board is delighted that institutional investors Darwin and Henderson Volantis have chosen to partner with us."

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The EFF agreement with Darwin provides Ascent with a facility which can be drawn down over the next three years. The company is under no obligation to make a draw down and may make drawdowns at its discretion. However, there will be an additional fee payable to Darwin if less than £0.5m is drawn down within the first 24 months.

The company needs Darwin's permission if the subscription notice exceeds £0.5m.

NR