Partner Withdrawal from Po Va

RNS Number : 9121K

Ascent Resources PLC

28 April 2010

 



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

28 April 2010

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

Partner Withdrawal from Po Valley Permit

Ascent Resources plc, the AIM-traded oil and gas exploration and production company, through its wholly owned subsidiary Ascent Resources Italia srl, has agreed terms with farm-in partner Otto Energy Limited ('Otto') for Otto's withdrawal from the Cento & Bastiglia exploration permit ('the Permit') in the Po Valley of northern Italy.  Under the terms of the withdrawal, Ascent will retain 100% of the licence and Otto will immediately contribute funds towards potential restoration costs and forfeit its entitlement to the refund of any value added tax ('VAT') due on the project.

In 2007, Ascent farmed out a 50% working interest in the Permit to Otto in return for the funding of the Gazzata-1 exploration well that was drilled in 2009 and €1.5 million of seismic expenses.  After the unsuccessful Gazzata well and a strategic review of its geographic focus, Otto has elected not to continue with the exploration of the licence.  The value to Ascent of the VAT refund and the restoration funding is estimated to be €800,000.

Ascent has reviewed the technical data on the licence and is considering seismic acquisition as the next stage of the exploration programme.  However, for 2010, priority will be given to the major Petišovci Lovaszi development project in Slovenia and Hungary where 3-D seismic is currently being acquired at Lovaszi and planning for up to six wells in Slovenia continues.

* * 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]
Shane Gallwey	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 interests in 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.

 

END

 

 

MSCIRMPTMBATBLM