Ascent Resources Regulatory News (AST)

16 Oct 2008 07:00

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

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

To Provide Oil and Gas Asset Management Services for Swiss Investment Fund

Ascent Resources plc, the AIM-traded oil and gas production and exploration company, has agreed with San Severina Holdings SA ('San Severina'), a Swiss based investment company, to establish an oil and gas asset management joint venture. The joint venture will acquire minority interests and providing investment funding for producing and development or appraisal stage oil and gas projects. Under the terms of the agreement, Ascent will provide management services for these oil and gas properties in return for a carried equity participation in the projects. Ascent's current production and development activities in central and eastern Europe continue unaffected and the investment assets will be primarily outside of these areas of operations.

San Severina, a Swiss based investment fund active since 1972, plans to commit an initial €100 million to the establishment of an oil and gas investment division to manage its existing investors' oil and gas assets and pursue other opportunities in the sector.  San Severina views the agreement with Ascent as the cornerstone of a new, dedicated, open-ended oil and gas fund.  In the short-term, a range of investment opportunities are under evaluation and bespoke equity and financing plans will be prepared for each.

Ascent Managing Director Jeremy Eng said, "This is a potentially transformational partnership for Ascent. The oil and gas asset management agreement with San Severina will provide us with long term capital benefits; a deal flow to complement our existing portfolio and funding capabilities to expand outside our core geographical area. In essence, it will allow us to leverage the expertise of our team and generate value for our shareholders through the participation in additional projects with San Severina."

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

Notes

Ascent Resources plc has a diversified portfolio of some 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.