Ascent Resources Regulatory News (AST)

8 Jan 2007 07:01

Ascent Resources PLC08 January 2007 Ascent Resources plc ("Ascent" or the "Company") Disposal of Romanian Interests Ascent Resources plc, the AIM-traded European oil and gas exploration andproduction company, has entered into an agreement to sell its wholly ownedsubsidiary, Millennium International Resources Corporation Limited ("Millennium"), to Aurelian Oil & Gas PLC for a cash consideration of EUR 2,000,000. The assets of Millennium are a 5 per cent. non-operated interestin three concessions in Romania. The proceeds of the sale will be used tofurther develop Ascent's operated European exploration and production portfolio. Millennium's Romanian assets, the 5 per cent. interest in the Brodina, Cuejdiuand Bacau concessions, although producing some gas from the Bilca development,were non core to the Company's strategy. With a substantial appreciation in thevalue of the Millennium assets, the decision was taken to realise this value andto invest the proceeds in accelerating the development of Ascent's operatedinterests. Following the disposal, Ascent will hold interests of 50 per cent. ormore in the majority of its portfolio located in Italy, Switzerland, Hungary,Spain and offshore Netherlands. From gas sales in October, November and December 2006, Millennium had a turnover(unaudited) after Government Royalty of EUR 70,000. Ascent Managing Director Jeremy Eng said: "The increase in the value ofMillennium since we acquired it in April prompted the Board to sell this noncore asset and invest the proceeds in Ascent's extensive operated portfolio. Weare currently drilling our third well in as many months. When the rig hasfinished in Italy, it will move to Spain to continue drilling. Despite our highlevel of activity, and with more Hungarian and Italian drilling already planned,Ascent's portfolio includes 15 operated projects that will remain undrilled atthe conclusion of this campaign." * * ENDS * * For further information visit www.ascentresources.co.uk or contact: Jeremy Eng Ascent Resources plc Tel: 020 7251 4905 Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477 Notes Ascent Resources has a portfolio of 20 oil and gas projects across fivecountries in Europe. The projects are onshore in Italy, Switzerland, Hungary andSpain and offshore Netherlands. Ascent is at present drilling a programme ofsix exploration wells. Two have already been drilled in Hungary, one of whichwas a gas discovery. The first of two Italian wells is currently drilling aheadand two further wells are scheduled for Spain. Later in 2007, two gasexploration wells are to be drilled in Hungary, high impact gas explorationwells are planned in the Po Valley in Italy, and one well in Switzerland subjectto permitting and rig availability. Ascent operates Spain's only onshore oilfield where production currentlyaverages over 100 barrels of oil per day. 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 substantially lowerthan they are offshore. Ascent's directors are specialists in the oil and gas business and haveexpertise and experience in commercialising energy assets. The Company's Boardand Executive Management provide the basis upon which Ascent can accommodate therapid growth that the Company plans in the short term. This information is provided by RNS The company news service from the London Stock Exchange