Portfolio Update for AGM

RNS Number : 5811Z

Ascent Resources PLC

22 July 2008

 



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

22nd July 2008 

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

Portfolio Update for AGM

Ascent Resources plc, the AIM-traded oil and gas exploration and production company, releases this announcement to coincide with the Company's Annual General Meeting scheduled for today at 10am. An updated Corporate Presentation will also be available on the Company's

website www.ascentresources.co.uk .

Strategy

The Company is focusing its efforts on Central and Eastern Europe, particularly Italy, Switzerland, Hungary and Slovenia. Production is due to commence in Hungary by early August and the recently announced involvement in new projects in Switzerland and Slovenia strengthens the Company's portfolio of development, appraisal and exploration projects in the region. 

 

Hungary

Penészlek Gasfield Development - 45.2% interest

Following the issue of the relevant permits, gas sales from the PEN-104 well are scheduled to commence shortly once the final components of the production facility are delivered and installed.  The acquisition of 3-D seismic in the immediate area is planned; this will assist in evaluating other gas prospects which may be developed, including the partially depleted Penészlek field and the PEN-9 and PEN-12 wells, all of which have proven gas production.

Bajcsa Gasfield Redevelopment - 38.7% interest

Studies have confirmed reserves of unproduced gas in a number of the multiple reservoirs of the Bajcsa field.  The work programme is being finalised and will include the re-entry and workover of old wells and the drilling of new horizontal production wells.  

Szolnok Exploration Project - 27.5% interest

On the results of the 3-D seismic shot in April, a further two exploration wells and additional 3-D seismic are planned. Ascent has been approached with the view to farming down its interest in this project which could provide funding for the further exploration programme.

Nyírség Exploration Project - 52.5% interest

A farm-out in the western part of the Nyirség permits is under discussion.

Slovenia

Petisovci Shallow Reservoirs - 45% interest

Following extensive study and a completely revised subsurface model, the technical recommendation is to acquire a new 3-D seismic survey across the field area. At the same time, some of the existing wells will be worked over to restart production. Previous third party independent estimates indicate the remaining proven plus probable ('2P') oil reserves to be 10.7 million barrels.

Petisovci Globoki Deep Reservoirs - 15.75% interest

The deep gas reservoirs will benefit from the 3-D seismic survey and further testing of the D-14 well has been recommended to determine the E-1 reservoir productivity at this location.  A rig to undertake this work is available in Q4.

East Slovenian Exploration Project - 80% interest

Recently acquired, the current work programme envisages a regional exploration study followed by seismic and exploration or appraisal drilling in 2009. The East Slovenian Project adjoins the Petisovci Redevelopment Project and a number of wells drilled in the 1950's had indications of the presence of oil and gas.

Switzerland

Seeland Exploration and Appraisal - 90% interest

Seismic reprocessing and geological modelling is now complete. Drilling of the Hermrigen-2 appraisal well to re-test the productive gas reservoir is now scheduled for 2009, subject to the issue of a construction permit.  Ascent is currently in discussions with a number of third parties for the farm-out of this opportunity.  

Concordat Exploration Permit - 35% interest

The current work programme for the remainder of 2008 considers the reprocessing of existing seismic data in this newly acquired licence area.

Vaud Exploration and Appraisal - 90% interest

While the Company is considering an appraisal of the Essertines oil discovery, the exploration of nearby Triassic gas prospects is also under consideration.

Linden Exploration and Appraisal - 90% interest

An appraisal well for the Linden gas discovery but will require a large drilling unit capable of reaching a depth of 5,000m.

Netherlands

Offshore blocks M8, M10, M11 and P4 - 27% interest

The preliminary work programme to establish the hydrocarbon potential of this exploration and appraisal project has been completed and a divestment of these assets is under consideration.

Italy

Frosinone Exploration - 80% interest

The 2-D seismic acquisition programme in the vicinity of the Anagni-1 well was completed this month and processing and interpretation of this data to assess the potential of the Anagni structure is commencing. 

Cento and Bastiglia permits, Po Valley Exploration - 50% interest

The Gazzata-1 well is expected to spud in the second half of 2008.  Under the terms of the farm-out announced in November 2007, the first well is fully funded, as will be a second well if the Gazzata-1 well is a commercial discovery.

Fiume Arrone exploration - 56% interest

An application has been submitted to extend the exploration permit for a further three years.

Strangolagalli Exploration - 50% interest

In the Strangolagalli concession which contains the Ripi oilfield seismic tests have been run. In addition to the deep exploration below the oilfield in which Ascent has a 50% interest, participating in a redevelopment of the Ripi oilfield is a possibility.

Perazzoli Drilling - 22.5% interest

The third Perazzoli Drilling rig is due to leave the factory in the next few weeks. This 200T unit will supplement the 100T and 40T units which are already active in Italy. The new rig will commence drilling for a third party and later in the year will be available to drill the Gazzata-1 well in the Cento and Bastiglia permits of northern Italy.

Finance

In addition to cash reserves, the recent completion of the sale of a 7.27% interest in Ascent's Hungarian development project provides a further €1m. Also, after establishing an initial debt facility in 2006 of €500,000 through Italian banks, the Company, through its Italian subsidiary, has negotiated another debt facility of up to €1.5m for the development of the Italian assets. The Company continues to assess divestment and farm-out opportunities which would provide the Company with further capital to maintain its aggressive exploration and development programme.

* * ENDS * *

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

Jeremy Eng	Ascent    Resources plc	Tel: [phone]
Hugo de Salis Victoria Thomas	St Brides Media & Finance Ltd St Brides Media & Finance Ltd	Tel: [phone] Tel: [phone]
Max Hartley	Cenkos Securities plc	Tel: [phone]

Notes

Ascent Resources plc has a diversified portfolio of over 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.

 

END

 

 

AGMIIFEDDFIFFIT