Ascent Resources Regulatory News (AST)

19 Jul 2005 07:15

Ascent Resources PLC19 July 2005 Ascent Resources Plc / Epic: AST / Index: AIM / Sector: Exploration Ascent Resources Plc ("Ascent" or "the Company") "Acquires further exploration concessions' Overview: • Continuing strategy of building an extensive oil and gas explorationand production portfolio primarily focussed in Europe • Acquired Vintage Petroleum Italiana srl, which holds two gasexploration permits in the central part of the Po Valley in Italy • Secured a farm-in to an oil exploration permit and a productionconcession in the Latina Valley south east of Rome held by Pentex Italia • Sold 12.86% interest of the Iris Marin and Themis Marin productionsharing contracts in Gabon for cash, shares and a production royalty Ascent Resources plc, the AIM listed oil and gas exploration and productioncompany, has expanded its exploration portfolio through the acquisition of282,412 acres of gas exploration concessions in the Po Valley and the signing ofa farm-in agreement with Pentex Italia in the Latina Valley. Both projects arein hydrocarbon producing areas of Italy. In line with the Company's strategy offocussing on Europe, the Board decided to realise a gain on its Gabon interestthrough its sale to AIM listed Afren Plc. Ascent retains a 1.75% productionroyalty in any production going forward. Purchase of Vintage Petroleum Italiana srl The Company has purchased 100% of the share capital of Vintage PetroleumItaliana srl, which was a wholly owned subsidiary of Vintage Petroleum, Inc. ofTulsa, Oklahoma. Vintage Petroleum Italiana srl's principal assets are Centoand Bastiglia, two gas exploration permits totalling some 282,412 acres (114,288hectares) in the central part of Italy's Po Valley, one of the most prolific gasproducing regions of Europe with over 100 proven gasfields. Ascent is paying US$2.6 million cash for the acquisition including drilling andcompletion inventory (casing, tubing and wellheads) sufficient for three wellsand working capital. Vintage Petroleum, Inc. has the right until the end of2009 to re-acquire 30% of the exploration permits by paying 30% of the relatedcosts. It also has the right to recover 75% of its accrued net operating lossesfrom future revenues, all of which will have expired by the end of 2009. Vintage Petroleum Italiana srl is to be renamed Ascent Resources Italiana srl. Farm-in agreement with Pentex Italia Limited ('Pentex') Ascent has signed an agreement to farm-in to oil exploration acreage held byPentex in the Latina Valley nearby to Rome. The Company will hold a 70%interest under the farm-in agreement in the Frosinone exploration permit and a50% interest in the Strangolagalli concession. Although the Strangolagalliconcession contains the producing Ripi oilfield, this is excluded from thefarm-in. Ascent will fund the exploration programme anticipated to be one well (Anagni 1- scheduled to be drilled in October 2005), a 60km seismic programme in 2006 anda second well to be drilled by 2007. The Company will refund £350,000 of pastexploration costs to Pentex. The exploration targets are the Apennine ThrustCarbonates similar to the southern Apennine's fields of Monte Alpi, Tempa Rossaand Cerro Falcone where some one billion barrels of recoverable oil have beendiscovered in the past 17 years. Sale of Iris Marin and Themis Marin Ascent's strategy of being primarily focussed in Europe has led to the Companyagreeing to sell the two companies that hold 12.86% interests in the Iris Marinand Themis Marin production sharing contracts (PSC) offshore Gabon to AIM listedAfren Plc. Ascent will immediately receive £684,000 for reimbursement of backcosts and 404,350 new shares in Afren, which at the current share price of 35.5phave a market value of £143,544. Ascent will also be granted a 1.75% netprofits interest in each of the two production sharing contracts, which will bepaid to Ascent on a quarterly basis. The first well to be drilled in the IrisMarin PSC is now expected to start drilling in late August 2005. On completionof the deal, the Company has generated a significant cash return on itsinvestment as well as maintaining an interest in the future success of theproject through a holding in Afren and a revenue stream from any futureproduction from these properties. Current portfolio With the completion of these of these deals, Ascent's portfolio will include thenew Italian gas and oil projects, a 90% interests in gas projects in Hungary andHolland, a 90% interest in a Swiss oil and gas project, and the profit sharefrom future production from the Iris Marin and Themis Marin PSCs in Gabon. Ascent Managing Director, Jeremy Eng, said: "We are aiming to become asignificant oil and gas exploration company with an asset focus primarily inEurope. With the acquisition of Vintage Petroleum Italiana srl and the farm-into Latina Valley, we have already achieved two of the three objectives setbefore our fund raising two months ago. The third acquisition is expected to beconcluded shortly. The transaction in Gabon will minimise our risk and removeour financial exposure to the upcoming drilling campaign there. Furthermore,whilst funds will be returned to treasury, we have preserved a share of theupside resulting from a successful well. Since March 2005, we have alreadyassembled a noteworthy portfolio of projects and a first class team of oilindustry professionals and believe that we can build shareholder value goingforward." * * ENDS * * Issued on behalf of Ascent Resources Plc by St Brides Media & Finance Ltd, 46Bedford Row, London, WC1R 4LR. Contacts: Jeremy Eng Ascent Resources Plc Tel: 020 7251 4905Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477 Notes: Ascent is an AIM listed oil and gas company with a primary focus in Europe.Founded in November 2004, Ascent considers the full spectrum of projectscovering exploration, early stage development and production. The Company has anexperienced technical team with strong industry contacts and a proven trackrecord. They have implemented a structured two phase development strategy: Phase1 is to develop a core of half a dozen majority owned projects whilst Phase 2 isto acquire a lesser number of larger scale projects across a wider geographicalrange. The Company now has a 90% interests in projects in Hungary (gas),Switzerland (gas & oil), and Holland (gas), a 100% interest in an Italian gasexploration project and a 70% interest in Italian oil exploration as well as theroyalty interest in Gabon. The balance of oil and gas assets and thegeographical spread of projects mainly in net energy importing countries aredesigned to mitigate the risk in commodity price fluctuation and changes inglobal energy politics This information is provided by RNS The company news service from the London Stock Exchange