Fontana-1 Drilling Update

RNS Number : 5202E

Ascent Resources PLC

22 December 2009

 



Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas

22 December 2009

Ascent Resources plc ('Ascent' or 'the Company')

Fontana-1 Drilling Update

Ascent Resources plc, the AIM-traded oil and gas exploration and production company, through its wholly owned subsidiary Ascent Resources Italia srl ('ARI'), is planning to re-drill the Fontana-1 well in January 2010.  The original well, designed to collect cores and appraise the shallow part of the Anagni structure in the Frosinone Exploration permit in the Latina Valley, has experienced mechanical problems after reaching the target depth.

The Fontana-1 well reached the target formation, and, as expected, loss of circulation of the drilling mud, as had occurred in the Anagni-1 well, was experienced.  Unfortunately, these losses destabilised the well and it was not possible to obtain core samples and no other information regarding the target horizon was obtained.  The losses occurred at a depth more than 300m shallower than in the Anagni well which is 1.7 km away.

The drilling of the Fontana-1 well is substantially under budget and both it and the replacement well will be drilled for a total cost estimated to be only 20% in excess of the original budget.  

Jeremy Eng Ascent's Managing Director commented, "This well has confirmed the seismic interpretation and that the new location is substantially updip from the Anagni-1 well location.  A slightly modified drilling procedure will help ensure that the all important core samples will be obtained within the coming weeks.  The additional expenditure over the original budget will be below £100,000 and the potential upside from Fontana-1 still remains."

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For further information visit www.ascentresources.co.uk or contact:

Jeremy Eng	Ascent    Resources plc	Tel: [phone]
Hugo de Salis	St Brides Media & Finance Ltd	Tel: [phone]
Paul Youens	St Brides Media & Finance Ltd	Tel: [phone]
Lindsay Mair	Astaire Securities	Tel: [phone]
Jerry Keen	Astaire Securities (Corporate Broking)	Tel: [phone]
Toby Gibbs	Astaire Securities	Tel: [phone]

Notes

Ascent Resources plc has a diversified portfolio of hydrocarbon exploration and development projects across five countries in Europe: Italy, Switzerland, Hungary, Slovenia and Netherlands.  Ascent's portfolio contains a solid base of field redevelopment projects with selected exposure to exploration upside.  The portfolio is focussed on gas and with the exception of the shallow water Netherlands project, all of its projects are located onshore where operating and development costs are substantially lower than they are offshore.  

 

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