Ascent Resources Regulatory News (AST)

1 Mar 2005 12:15

Ascent Resources PLC01 March 2005 Ascent Resources plc Acquisition of interests in Gabon Production Sharing Contracts Board Changes Ascent Resources plc ("Ascent") has entered into an agreement with HardmanResources Ltd ("Hardman") to acquire two wholly owned subsidiaries, GabonInvestments (Iris Marin) Pty Ltd and Gabon Investments (Themis Marin) Pty Ltd.These companies hold a 12.86% Participating Interest in the Iris MarinProduction Sharing Contract ("PSC") and in the Themis Marin Production SharingContract respectively. The Iris Marin and Themis Marin PSCs cover two shallow water explorationconcessions offshore Gabon of 902 km2 and 607 km2 respectively. Gabon is centrally situated in the West African oil & gas province and has along history of oil production. It has the third largest reserves and is thefourth biggest producer in the region. Current production from Gabon isapproximately 250,000 bopd from its onshore and offshore fields. Both the Themis Marin and Iris Marin concessions are surrounded by provenoilfields and are close to pipelines and production infrastructure. Since theseconcessions were awarded in 1999, a 3-D seismic survey has been acquired andfrom these results a number of drilling locations have been identified. Thedrilling of the first of two commitment wells is planned for this summer. The other partners in both PSCs are: Fusion Oil & Gas NL 20.57% Premier Oil Gabon 18.00% Petro Oil & Gas Corp of South Africa Pty Ltd 22.86% Sunburnt Downs Pastoral Company Pty Ltd 25.71% Initial consideration for the acquisition will be the issue of 12 million newordinary shares of Ascent to Hardman. Following completion, Ascent shallreimburse Hardman for US$515,765 of past costs. Further payments will be made toHardman of A$500,000 in the event of successful recovery of hydrocarbon ontesting from a well in either of the PSCs and A$700,000 on issue of governmentalapproval for exploitation of either of the PSCs. Ascent is appointing Mr Jeremy Eng to the position of Managing Director. Mr Enghas extensive experience in the independent oil and gas sector and a widenetwork of contacts within the sector. This appointment underlines theinvestment strategy of the Board to position Ascent as an active investor in thejunior oil and gas sector. At the same time, James Pratt and Gary Steinepreisare resigning from the Board. Jeremy Eng, aged 45, has a masters degree in petroleum engineering and more than23 years of oil & gas industry experience. He has specialised in operations andtechnical management for the independent sector. After commencing his careerwith Schlumberger and subsequently working for Premier, Tullow and IPC, whichhas since been renamed Lundin Oil, he founded and for many years ran asuccessful petroleum engineering consultancy business. Recent positions include:CEO of a private upstream gas company and Technical Director of WPN ResourcesLtd, a Canadian junior listed oil & gas company now called Grove Energy. Following his appointment, Jeremy Eng will be granted options to subscribe for10 million new ordinary shares at a price of 5p per share, exercisable at anytime between the first and fifth anniversaries of grant. Ascent has agreed to undertake due diligence on two oil & gas interests held byJeremy Eng and others with a view to purchasing them on commercial terms. Afurther announcement will be made in relation to this potential acquisition atthe appropriate time. 1 March 2005 Enquiries Jeremy Eng Managing Director Telephone: +44 20 7251 4905 Facsimile: +44 20 8681 2680 E-mail: jeng@ascentresources.co.uk David Steinepreis Chairman Telephone: +44 7913 402 727 E-mail: dcs@ascentcapital.com.au Appendix The following additional information is given pursuant to paragraph (f) ofschedule 2 of the AIM Rules: Current Directorships • CDS Oil & Gas Group plc; • Petro Swiss Limited Directorships held within the previous five years • WPN Resources Limited This information is provided by RNS The company news service from the London Stock Exchange