Ascent Resources Regulatory News (AST)

14 Apr 2008 07:01

Ascent Resources PLC14 April 2008 Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas 14 April 2008 Ascent Resources plc ("Ascent" or "the Company") Hungarian Divestment Ascent Resources plc, the AIM-traded oil and gas exploration and productioncompany has agreed to divest an interest in two of its Hungarian gas developmentprojects to fellow AIM Company Leni Gas and Oil plc ("LGO"). LGO will purchase a7.27% interest in PetroHungaria kft and a 14.54% interest in ZalaGasCo kft fromAscent for a cash consideration of €2 million. PetroHungaria kft ("PetroHungaria") owns a 100% interest in the Peneszlek gasdevelopment project in the Nyirseg exploration permits in eastern Hungary whileZalaGasCo kft owns a 50% interest in the Bajcsa gasfield redevelopment projectin western Hungary. On completion of the divestment, Ascent will have a 45.23%interest in the Peneszlek project and a 38.73% interest in the Bajcsa project. The Peneszlek gas development project is centred on the development of thePEN-104 discovery that was drilled and tested by PetroHungaria in 2006. Aworkover rig has just finished completing and re-testing this well and theproduction facilities are scheduled to be delivered later this month. Thecompletion testing confirmed the excellent productivity of the PEN-104 well andproduction will commence once the hook-up to the pipeline is completed andauthorisations received. In addition to the planned tie-in of the PEN-9 andPEN-12 wells, further appraisal of the area will be undertaken with theacquisition of approximately 100 sq km of 3-D seismic, including the area of thepartially depleted Peneszlek field, which is a candidate for re-development. The Bajcsa gasfield redevelopment project is a 50:50 joint venture with MOL RT,the leading Hungarian oil and gas company. The joint venture will undertake theredevelopment of the Bajsca gasfield with the drilling of horizontal wells in tothe proven productive gas reservoirs. The first two wells are planned asre-completions of existing wells and the operations will commence as soon as thedrilling permits are issued. Work has already commenced to enable access to thewell sites. As these wells were previously on production they are alreadyconnected to the field gas processing facilities and therefore production canstart immediately they are completed. In a modification to the previous agreement with LGO regarding the farm-in toAscent's Hermrigen gas appraisal project in Switzerland, Ascent have agreed togrant LGO the option to take a 10% participating interest in this project and inthe Seeland Freinisberg Exploration Permit for a further payment of €2 millionpayable on the date of the exercise. This two year option may be withdrawn byAscent at its sole discretion, so long as it has not already been exercised. Jeremy Eng Ascent's Managing Director said, "We are pleased to welcome Leni Gasand Oil as a partner in our Hungarian development projects. We aim rapidly todevelop our activities in Hungary and secure cash flow from the production andsale of gas to the local market." * * 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 Max Hartley Cenkos Securities plc Tel: 020 7397 8924 Notes Ascent Resources plc has a diversified portfolio of some 20 hydrocarbonexploration and development projects across six countries in Europe: Italy,Switzerland, Hungary, Spain, Slovenia and Netherlands. Ascent's portfoliocontains a solid base of field redevelopment projects with selected exposure toexploration upside. The portfolio is focussed on gas and with the exception ofthe shallow water Netherlands project, all of its projects are located onshorewhere operating and development costs are substantially lower than they areoffshore. This information is provided by RNS The company news service from the London Stock Exchange