Hungarian Drilling Update

RNS Number : 6689P

Ascent Resources PLC

29 March 2009

 



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

30 March 2009

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

Hungarian Drilling Update

Ascent Resources plc, the AIM-traded oil and gas exploration and production company, through its 45.23% owned subsidiary PetroHungaria kft ('PetroHungaria'), has started drilling PEN-104A, a sidetrack well to the gas producing PEN-104 well in the Penészlek area of the Nyírség permits of eastern Hungary.

The PEN-104 discovery well, originally drilled in 2006 by PetroHungaria, produced gas from August 2008 to February 2009 with cumulative production of 509 MMscf (14.41 million sm3). Following the acquisition of 3-D seismic in the area and as a consequence of a compressor failure in the regional gas supply infrastructure, PetroHungaria decided to drill the 104A sidetrack to reach additional gas reserves in a higher part of the structure. The sidetrack is expected to take about three weeks to complete and can be brought on production immediately through the existing facilities.

As a further consequence of the 3-D seismic results, plans are being made to drill PEN-105, an appraisal well of the PEN-12 gas discovery drilled in 1983, and PEN-102A, a sidetrack of the PEN-102 well drilled by PetroHungaria in 2006. Permitting for these wells and their associated pipelines is underway. The drilling of an appraisal of the PEN-9 gas discovery is also being assessed and the drilling of further wells in the area where the 3-D seismic was acquired is under consideration.

Ascent holds a 45.23% interest in the Penészlek Project through its equity interest in PetroHungaria. Other partners include DualEx (37.5%), Geomega (8%), Leni Gas & Oil (7.27%) and Swede Resources (2%).

Ascent Managing Director Jeremy Eng said, 'The extent of the reserves that are present in the Penészlek area are only now becoming apparent with the 3-D seismic being instrumental in identifying the potential. Importantly, these estimates do not yet include any contribution from the rehabilitation of the old Penészlek gasfield where the seismic clearly shows that the configuration is very different from previous interpretations. We can expect cashflow from these gas production projects to continue for some years yet.'

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Glossary

Sm3	Standard cubic metres of gas
MMscf	Millions of standard cubic feet of gas
3-D seismic	High resolution seismic processed in three dimensions

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]
Max Hartley	Cenkos Securities plc	Tel: [phone]

Notes

Ascent Resources plc has a diversified portfolio of some 20 hydrocarbon exploration and development projects across five countries in Europe: Italy, Switzerland, Hungary, Slovenia and Netherlands. Its 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. In October 2008, Ascent agreed with San Severina Holdings SA, a Swiss based investment company, to establish an oil and gas asset management joint venture. The joint venture will acquire minority interests and providing investment funding for producing and development or appraisal stage oil and gas projects.

 

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