Ascent Resources plc has acquired a 49% interest in 119,000 acres of helium-rich oil and gas licences in the Paradox Basin across Utah and Colorado, USA.
ZONES
The US$2 million acquisition, supported by a $475,949 fundraise at a 203% premium, is from Houston-based operator American Helium LLC.
Ascent will pay $1.75m with 27,650,000 new Ascent shares issued at 5 pence per new share and $250,000 cash.
The licences hold 18.2 bcf of natural gas with up to 1% helium, 2.79 mmbbls of oil and condensates and 2.34 mmboe of natural gas liquids, based on a competent person’s report dated 1 April 2024.
As part of the agreement, Ascent will issue 22m vendor warrants to American Helium’s chief executive officer Humberto Sirvent and five million vendor warrants to chairman of the advisory board, Michael Pompeo.
Mr Pompeo served in the first administration of President Donald Trump, director of the Central Intelligence Agency from 2017 to 2018 and as the 70th United States secretary of state from 2018 to 2021.
The vendor warrants are exercisable within the next three years by paying 5 pence per new vendor warrant share.
“We are really excited to acquire a material interest in American Helium’s southern Utah and Colorado acreage, which is adjacent to the GNG plant and gas gathering system into which we invested earlier this year,” said Ascent CEO Andrew Dennan.
“Our new investment into upstream acreage secures Ascent’s direct interest in material proven reserves which has significant behind pipe and step out as well as exploration upside and gives access to valuable natural gas reserves which can be produced from high helium producing zones within the acreage.”
SUBSCRIPTION
The $475,949 fundraise was by way of a subscription for 7,520,000 ordinary shares at a price of 5 pence per new share, with warrants attached.
Three warrants are for every two new equity shares subscribed for, exercisable at 2.3 pence within three years.
Ascent’s major shareholder MBD Partners SA subscribed for $250,000.
The company additionally issued one million shares to a consultant, at the subscription price of 5 pence per new share, in lieu of cash for services between June and November 2024.
Qualifying investors and Ascent shareholders will be able to subscribe, via a broker option, for an additional 3,950,000 new ordinary shares, with attached warrants, equal to £197,500 or $250,000 at the placing price.
The broker option is exercisable from 20 December to 4pm on 30 December 2024.