Ascent Resources Regulatory News (AST)

19 Mar 2007 07:04

Ascent Resources PLC19 March 2007 Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas Ascent Resources plc ("Ascent" or the "Company") Commences Drilling Operations on Huermeces Licence Onshore Spain Ascent Resources plc, the AIM-traded oil and gas exploration and productioncompany, commenced drilling the Hontomin-4 well on the Huermeces licence onshoreSpain on March 17th 2007. The objective of the well is an up-dip appraisal inthe Hontomin structure where three wells, drilled between 1965 and 1992,confirmed the presence of an oil reservoir. Ascent's partner in this well isTethys Oil AB of Sweden with a 50% interest. Drilling operations on the well,which is planned to reach a depth of 1,570 metres, can be expected to last somefour weeks. The Huermeces licence is 17 km southeast of the Ascent-operated Ayoluengooilfield in the Sedano basin, 180 km south of Bilbao in northern Spain. The wellwas spudded at 06:00 local time on Saturday and on Sunday evening at 18:00 localtime was drilling ahead in 121/4" hole at 50m. The first Hontomin well, No. 1, had oil shows in the Liassic CarniolasDolomites, and the Hontomin-2 discovery well drilled in 1968, produced on testnearly 3,000 barrels of oil over a 26 day period. Initial rates were over 300barrels per day of oil, but a rapidly increasing water-cut suggested that thewell was close to the oil-water contact. A third well, Hontomin-3 (1991) wasunsuccessful, and later seismic work showed that it had been drilled down-dipand on the wrong side of a fault from the main part of the Hontomin structure.The oil is of good quality is of medium gravity (32 degree API). Once drilling and logging are completed, it is planned that that the rig willreturn to Italy to evaluate the Anagni-1 well. The testing at Hontomin will usethe workover rig and facilities of the Ayoluengo field. Production fromHontomin, as it is for the Ayoluengo field, can be readily transported to marketby truck. The information contained in this release has been reviewed and approved by DrEloi Dolivo, Ascent's Exploration Manager. Dr Dolivo (member of the AAPG) has26 years experience in the evaluation of hydrocarbon resources. * * 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 Notes: Ascent Resources has a portfolio of over 20 oil and gas projects across sixcountries in Europe. The projects are onshore in Italy, Switzerland, Hungary,Spain, Slovenia and offshore Netherlands. Ascent is at present drilling aprogramme of six wells. Two have already been drilled in Hungary, one of whichwas a gas discovery. The Anagni-1 well, first of two Italian wells, has beentemporarily completed for future deepening and testing and this Hontomin-4 wellis the first of two wells in Spain. Later in 2007, two more gas explorationwells are to be drilled in Hungary, high impact gas exploration wells areplanned in the Po Valley in Italy, and one well in Switzerland, subject topermitting and rig availability. Ascent operates Spain's only onshore oilfield where production currentlyaverages over 100 barrels of oil per day. With the stable European gas market, Ascent's portfolio favours gas over oiland, with the exception of the Netherlands, all of its projects are locatedonshore where operating and development costs are substantially lower than theyare offshore. Glossary: Degree API Degrees API (American Petroleum Institute). A unit of liquid density. Degrees API Gravity = ((141.5 / Specific Gravity at 60 Degree F) - 131.5) AAPG Member of the American Association of Petroleum Geologists This information is provided by RNS The company news service from the London Stock Exchange