Exploration firm Ascent Resources announces first acquisition in Cuba

Oil and gas exploration and production firm Ascent Resources has announced its first acquisition in Cuba, marking its entry into the Caribbean market.

The acquisition includes UK-based Energetical Limited, which has exclusive rights to secure a production sharing contract (PSC) on a producing onshore Cuban oil licence.

Energetical delivers exclusive rights to the Block 9B in Cuba. This block contains the onshore Majaguillar and San Anton fields, located on the north coast of Cuba.

The block currently produces 190 gross barrels of oil per day (bopd) from three wells.

Ascent said it is reviewing potential further acquisitions to develop a wider Cuban portfolio across the oil and gas sector, along with the existing oil and gas asset in Slovenia.

Ascent Resources executive chairman James Parsons said: “Cuba is one of the last remaining largely untapped hydrocarbon provinces of scale.

“We see here, despite the recent market turmoil and oil price collapse, the unique ingredients for a new, highly material, growth trajectory across oil, gas and mining when the cycle turns. We also see near term inflection points for Cuba, including the approaching US elections.

“We are therefore positioning Ascent as an advantaged platform for counter cyclical acquisitive growth with a focus on low-cost production, manageable initial capital commitments and near term re-rate potential. We intend to leverage off our operated position in Slovenia.”

In July 2018, Ascent Resources signed agreements to acquire natural gas and oil properties in the Utica Shale, US, for a total consideration of $1.5bn.

In May 2015, Ascent Resources secured a £7m loan from Henderson Global Investors for the Petišovci Tight Gas Project in Slovenia.