Hungarian testing and product

RNS Number : 3377I

Ascent Resources PLC

10 March 2010

 



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

10 March 2010

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

Hungarian testing and production update

Ascent Resources plc, the AIM-traded oil and gas exploration and production company, through its subsidiary PetroHungaria kft, has successfully tested and completed the PEN-101 well, in the Penészlek area of the Nyírség exploration permits in eastern Hungary.  Once the rig has departed the site, the PEN-105 well will commence production to sales.

The completion of the PEN-101 well is, as planned, in a Miocene gas bearing formation within a structure defined on the 3-D seismic acquired in 2008.  Initial production rates achieved during preliminary testing exceeded 1.0 MMscfd (28.3x10³ Nm³/day), and productivity is expected to be improved in the coming days by the use of small scale acid stimulation, similar to that used with good results on the PEN-105 well.

The PEN-101 well is located at the site of the production facilities that will be used to produce both it and the PEN-105 gas discovery.  Production from PEN-105 is expected to commence during the week of 15 March 2010, following the departure of the rig and the granting of operating approval for the facilities from the Mining Authority.

The rig will then move to the PEN-104 location to continue the testing of the PEN-104AA sidetrack and, subsequently will continue drilling the PEN-106 well.  The PEN-106 well targets a structure that is similar to that proven by the PEN-105 well.

The Penészlek Project has been a successful investment for Ascent and following Leni Gas & Oil's ('LGO') relinquishment of its interest (announced by LGO on 5 March 2010), it has been distributed among the remaining project partners in proportion to their prior interest in the project, at no additional cost to them.

Ascent's Managing Director Jeremy Eng commented, "The recommencement of production in the coming days and the increased share of revenue that Ascent and its partners now stand to gain following LGO's decision to exit the project is an excellent outcome for Ascent.  The Penészlek Project is a good example of the onshore conventional gas production projects targeted by Ascent across Europe.  These types of projects benefit from low development and production costs, and with deregulated gas prices, provide a relatively high return on investment.  In addition to our successes in Hungary, we will shortly be able to provide an update on the re-drill of the Fontana-1 well in Italy, which is drilling ahead at a depth of over 400m".

Following the reallocation of LGO's interest and the conversion of Geomega's interest in the PEN-101 and PEN-106 wells from a working to a carried interest, the partners' interests in the project are now:

	Project Interest	PEN-101 & PEN-106
		Revenue Interest	Cost Share
Ascent Resources plc	48.776%	51.654%	53.381%
DualEx	40.440%	42.826%	44.258%
Swede Resources	2.157%	2.285%	2.361%
Geomega kft	8.627%	3.235%	0%

The technical information contained in this release has been reviewed and approved Dr. Clive Ninnes, Ascent's Engineering Manager.  Dr. Ninnes, a member of SPE who has 28 years relevant experience in the evaluation of hydrocarbon resources.

* * ENDS * *

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

Jeremy Eng	Ascent  Resources plc	Tel: [phone]
Simon Cunningham	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]
Daniel Fox-Davies	Fox-Davies Capital Ltd	Tel: [phone]
James Hehn	Fox-Davies Capital Ltd	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 would be offshore.

 

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