Independent oil and gas production and development company, EnQuest PLC reported on 21 December 2010 that it had agreed to dispose of its 48.75% interest in the Petisovci Project in Slovenia, in return for a 22.5% equity stake (150,903,958 new ordinary shares) in Ascent Resources plc. Ascent is an AIM traded oil and gas exploration and production company. EnQuest had acquired its interest in the Project through its November 2010 acquisition of Stratic Energy Corporation. EnQuest now reports that it has completed this transaction.

As a result of this completion, Ascent has issued 150,903,958 ordinary shares in Ascent to EnQuest.

EnQuest also has a nil-cost option to receive a further 29,686,000 new ordinary shares in Ascent, subject to certain criteria related to the successful development of the Project. The option will potentially allow EnQuest to benefit from the future success of the Project.

EnQuest has now transferred its former interest in the Petisovci Project to Ascent, increasing Ascent's stake in the Petisovci Concession from 26.25% to 75%.

Graham Cooper, EnQuest's Head of Business Development, has been appointed to the Board of Ascent as a non-executive director.

EnQuest still maintains exposure to the potential benefits of the Petisovci project and will continue, its involvement through its ownership in Ascent enabling EnQuest to maximise the value of this asset for EnQuest shareholders.

Tags: EnQuest PLC