PEN-104 Update

RNS Number : 0115M

Ascent Resources PLC

21 January 2009

 



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

21 January 2009

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

PEN-104 Update

Ascent Resources plc, the AIM-traded oil and gas production and exploration company, is planning to sidetrack its PEN-104 gas production well in the Penészlek area of the Nyírség exploration permits of eastern Hungary.  The well has been shut-in temporarily due to the failure of a compressor at the gas processing facility which resulted in unusually high export pipeline pressures. Repairs to the compressor that will reduce the pipeline pressure to its normal operating range are not expected to be completed until March 2009.  

PetroHungaria kft, in which Ascent holds a 45.23% interest, operates the well and expects that a 450m sidetrack of the well will substantially increase the potential recoverable gas in addition to reducing the amount of water produced by the well. Subject to permitting and rig availability, the side-tracked PEN-104 well could be ready to produce gas by the time the pipeline pressure is expected to return to normal in March.  The sidetrack opportunity has been identified from the analysis and interpretation of the 3-D seismic survey which was acquired in November 2008.  The other partners in the Penészlek Project are DualEx (37.5%), Geomega (8%), Leni Gas & Oil (7.27%) and Swede Resources (2%).

In addition to this opportunity, the partners are considering four other development projects. These include the sidetracking of the PEN-102 well, the re-drill of PEN-9 and PEN-12, and a new well south of PEN-12. The PEN-102 well was drilled and suspended by PetroHungaria in 2007 and its sidetrack is planned to be drilled after the PEN-104 sidetrack, and the other wells are expected to be drilled in Q3 or Q4 2009.

The new seismic shows that neither the existing PEN-9 or PEN-12 wells are situated in an ideal location for producing their associated reserves, although a sidetrack of PEN-12 is being considered as an option.  While the PEN-104 and PEN-102 sidetracks can proceed quickly because of land access agreements already in place, the additional wells will require a full permitting procedure and are unlikely to be drilled before Q3 2009.  Potentially, one to three wells to redevelop the prematurely abandoned Penészlek Miocene field could also be drilled this year, however the deeper sections within the 3-D survey are still being evaluated.  

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Jeremy Eng, Ascent's Managing Director commented, 'The results of the 3-D seismic acquisition have been excellent, and with the possibility of five producing wells in the medium term and with much of the infrastructure already in place, this is potentially a valuable development.'

The information contained in this announcement has been reviewed and approved by Eloi Dolivo, Ascent's Senior Exploration Advisor who has 28 years relevant experience in the oil and gas industry.

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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]
Victoria Thomas	St Brides Media & Finance Ltd	Tel: [phone]
Max Hartley	Cenkos Securities plc	Tel: [phone]
Daniel Fox-Davies	Fox-Davies Capital Limited	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. 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. 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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