Ascent Resources Regulatory News (AST)

16 Oct 2006 15:40

Ascent Resources PLC16 October 2006 Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas 16th October 2006 Ascent Resources plc ("Ascent" or "the Company") North Sea Licences awarded by Dutch Government Ascent Resources plc, the AIM traded oil and gas exploration and productioncompany, through its 90% owned joint venture (JV) with GTO Limited, has beenawarded four exploration licences covering a total area of 795 square kilometresby the Dutch Government. The P4, M8, M10 and M11 licences were identified by the JV following a technicalevaluation by GTO and Ascent. The technical work focussed on the newlyrecognised Carboniferous exploration plays as well as the traditionalRotleigendes plays. Gas was discovered within the M11 permit (M11-01) in 1982following a drill programme by NAM, and was tested at a rate of 6,600 cu.m perday (233 Mscfd) from the Upper Slochteren sandstones of the Rotliegendes (asreported by TNO on behalf of the Dutch Ministry of Economic Affairs). In thearea of M8, M10 and M11 a 3-D seismic survey is due for release next month andthis will form the basis for the new exploration effort. To assist in the funding of this exploration, Ascent has agreed a farm-in fromCanadian company McLaren Resources Inc ("McLaren"), whereby McLaren will pay62.5% of the JV costs for a 45% beneficial interest. Also, under the terms ofthe GTO JV agreement, GTO will receive 814,941 Ordinary Ascent Shares of 0.001pat a price of 11.78p (being the average price over the past six months). Ascent Managing Director Jeremy Eng said: "The award of these licences in theNetherlands adds a new dimension to Ascent. These are the Company's firstoffshore assets and they are in the shallow waters of the southern North Sea.The exploration targets are gas reservoirs and the M11 block already contains agas discovery. With Wintershall, Gaz de France and NAM (Shell-ESSO) alloperating nearby, it is our expectation that the gas potential of this area willbe developed quickly." Additionally, following the Letter of Intent from Swedish Company PetroPequniaAB announced on 23rd August 2006 regarding the exploration and development ofthe hydrocarbon resources of the Nyirseg Del and Nyirseg Szatmar explorationpermits in north-eastern Hungary, Ascent has finalised an agreement, wherebyPetroPequnia AB will farm-in for a 2% working interest. They will pay acontribution to back-costs as well as 4% of the cost of the drilling programmewith up to four wells. The terms of the agreement are the same as thosepreviously agreed with DualEx Nyirseg Inc and also announced on 23rd August.For this project, the drilling rig is currently in transit to the first drillinglocation and is expected to commence drilling the PEN-104 well on 21st October2006. * * ENDS * * For further information visit www.ascentresources.co.uk or contact:Jeremy Eng Ascent Resources plc Tel: 020 7251 4905Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477 NotesAscent Resources has an extensive portfolio of over 20 oil and gas projectsacross six countries in Europe. The projects are onshore in Italy, Switzerland,Hungary, Spain and Romania and now offshore the Netherlands. Ascent iscommencing a programme of six exploration wells, at least two in Hungary and twoeach in Spain and Italy. In 2007, high impact gas exploration wells are alsoplanned in the Po Valley in Italy and in Switzerland. Ascent will alsoparticipate in up to four non-operated exploration wells in the Aurelian Oil &Gas PLC led project in Romania (5% Ascent) from where gas production from theBilca development has just commenced. Ascent also produces about 100 barrels ofoil daily from Spain's only onshore oilfield. With the strong and stable European gas market, Ascent's portfolio favours gasover oil and, with the exception of the Netherlands, all of its projects arelocated onshore where operating and development costs are less than they areoffshore. Ascent's Board of Directors are specialists in the oil and gas business and eachdirector has extensive expertise and experience in commercialising energyassets. The Company's Board and Executive Management provide the basis uponwhich Ascent can accommodate the rapid growth that will accompany a discoverymade during the drilling campaign. This information is provided by RNS The company news service from the London Stock Exchange