Ascent Resources Regulatory News (AST)

11 Dec 2006 13:05

Ascent Resources PLC11 December 2006 Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas 11th December 2006 Ascent Resources plc ("Ascent" or "the Company") Results of FGY-2 Well in Hungary Ascent Resources plc, the AIM-traded oil and gas exploration and productioncompany, announces results from the second exploration well drilled in theNyirseg exploration permits of north east Hungary by PetroHungaria kft (Ascent90%) with Canadian and Swedish partners DualEx Energy International Inc ('DualEx') and Petro Pequnia AB. The Fehergyarmat 2 (FGY-2) well was spudded on November 20th 2006 and reached atotal depth of 1,100 meters in Lower Pannonian clastics on December 4th 2006.Testing of the primary target at a depth between 607 meters and 671 meters (net54 meters), demonstrated the presence of a good quality reservoir interval inwhich the mobile phase was water not gas. However, this result, in conjunctionwith the successful testing of the gas discovery drilled by the PEN-104 well(announced on November 14th 2006), has provided the parties with sufficientconfidence in the geological model that both DualEx and Petro Pequnia haveexercised their option to continue exploration drilling with two contingentexploration wells envisaged under the farm-in agreement. Moreover, close toFGY-2, another location FGY-1 is being permitted for future drilling and thiswell will target the same Pannonian section but in a structurally morefavourable location. The first option well, Pen-102, an appraisal of a gas discovery made in 1983,which was not put on production is 4.4 kilometres east of the PEN-104 discovery. The second option well, VAM-1, tests an exploration prospect in the Vamospercsarea 18 kilometres to the southwest of the Peneszlek field. Under the terms ofthe drilling contract, the same drilling rig is available for these two optionwells and operations could resume again in March 2007. As with the previouswells, DualEx will pay 75% and Petro Pequnia 4% of the costs of drilling andthis will earn a 37.5% and 2% working interest in the two Nyirseg explorationpermits which total 2,483 square kilometres. Ascent's Managing Director Jeremy Eng said, "Despite not having drilled a seconddiscovery, our understanding of this area is much improved with the data we haveacquired during this drilling programme. The previous test wells were drilledover 20 years ago and with technology now far more sophisticated, we lookforward to further success with the two option wells." DualEx's CEO Garry Hides commented, "Although we would obviously have preferreda discovery at FGY-2, these results in no way diminish our enthusiasm for theexploration potential of the block, nor the follow-up development opportunitiesresulting from the PEN-104 discovery." The information contained in this release has been reviewed and approved by DrEloi Dolivo, Ascent's Exploration Manager and Dr Clive Ninnes, Ascent'sEngineering Manager. Dr Dolivo (member of the AAPG) and Dr Ninnes (member ofSPE) have 26 and 25 years experience respectively in the evaluation ofhydrocarbon 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 4477Hugh Oram Nabarro Wells & Co. Limited Tel: 020 7710 7400 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 and Romania and offshore the Netherlands. Ascent is drilling a programmeof six exploration wells, at least two in Hungary and two each in Spain andItaly. In 2007, high impact gas exploration wells are also planned in the PoValley in Italy and in Switzerland. Ascent will participate in up to fournon-operated exploration wells in the Aurelian Oil & Gas PLC led project inRomania (5% Ascent) where gas is produced from the Bilca development. Ascentalso produces a hundred barrels of oil 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 substantially lowerthan they are offshore. Ascent's directors are specialists in the oil and gas business and each directorhas expertise and experience in commercialising energy assets. The Company'sBoard and Executive Management provide the basis upon which Ascent canaccommodate the rapid growth that the Company plans in the short term. This information is provided by RNS The company news service from the London Stock Exchange