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.
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For further information visit www.ascentresources.co.uk or contact:
Jeremy Eng Ascent Resources plc Tel: 020 7251 4905
Simon Cunningham Ascent Resources plc Tel: 020 7251 4905
Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7236 1177
Paul Youens St Brides Media & Finance Ltd Tel: 020 7236 1177
Lindsay Mair Astaire Securities Tel: 020 7448 4400
Jerry Keen Astaire Securities (Corporate Broking) Tel: 020 7448 4492
Toby Gibbs Astaire Securities Tel: 020 7448 4400
Daniel Fox-Davies Fox-Davies Capital Ltd Tel: 020 7936 5200
James Hehn Fox-Davies Capital Ltd Tel: 020 7936 5200
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.
