Shares in Ascent Resources (LON:AST) plunged more than 40 percent on Monday morning, after the company issued an update to investors.

The oil and gas exploration company launched a strategic review back in April to assess its options.

According to the update, Ascent said that the review resulted in the firm holding talks with various potential investors or companies to collaborate with to locate a solution.

Alongside a strategic review, the company noted that it had also come into difficulties as a result of permit delays in Slovenia.

Ascent said it has grown “increasingly frustrated by continued requests” from the Slovenian Environment Agency.

Moreover, production had weakened as the lack of progress with regards to permits which affected plans to re-stimulate its existing wells.

Colin Hutchinson, CEO if Ascent Resources plc, commented on the update:

“We continue to expect a positive outcome from the strategic review but have taken steps to prolong the life of the Company without the need for additional funding in the event this does not produce a positive outcome, or that outcome takes longer than expected to deliver.”

Ascent said it will look to re-assess commercial costs that are non-essential, such as day to day operation of the existing wells in Slovenia or to maintaining the AIM quote for the Company’s shares.

Alongside this, the statement said that non-executive directors had also agreed to reduce their remuneration by 50 percent, as well as a 100 percent deferral of remuneration from August 2018.

Shares in Ascent Resources are currently trading -40.76 percent as of 11.33AM (GMT).