Ascent Resources Regulatory News (AST)

12 Jun 2007 13:00

Ascent Resources PLC12 June 2007 Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas Ascent Resources plc ('Ascent' or the 'Company') Drilling Update - Hungary and Italy Ascent Resources plc, the AIM traded oil and gas exploration and productioncompany, in conjunction with its partners, has completed the drilling andlogging of the VAM-1 well in the Nyirseg exploration permits of north-eastHungary. Despite sampling good quality gas from a short duration open-hole testat 1,614m in the target Miocene formations, the decision has been made toabandon this well. The partnership is however continuing the planning of thedevelopment centred on the PEN-104 discovery. Meanwhile in Italy, the drillingrig is returning to the Frosinone exploration permit to deepen and test theAnagni-1 well. The VAM-1 exploration well reached a total depth of 2,010m and was the fourthwell drilled by Ascent's 90% owned Hungarian subsidiary PetroHungaria kft.These wells are in the Nyirseg exploration permits and were drilled under theterms of the farm-in agreements with DualEx of Canada and PetroPequnia ofSweden. The drilling of this fourth well concludes this phase of theexploration and completes the obligations under the farm-in. Participation inthe permits for the on-going exploration and future production are DualEx 37.5%,PetroPequnia 2% and PetroHungaria kft as operator with 60.5% and from now on thecosts and revenues will be divided according to these working interests. The four wells, in addition to the 2-D seismic shot by the PetroHungaria in2005, provide a vast amount of modern exploration data across the large 2,483 sqkm Nyirseg permits. The wells provide comprehensive coverage throughout thepermits: one was located near the northern boundary, one near the southernboundary whilst the other two were centrally located and close to the provenreserves of the Peneszlek field. The exploration data will form the basis forthe next phase of the exploration effort and partners have already begun todiscuss the options for the activities to further explore and appraise thehydrocarbon potential of the area. PetroHungaria is leading the planning of the development centred on the PEN-104gas discovery (announced 14 November 2006) and incorporating the PEN-9 andPEN-12 discovery wells. The re-development of the previously productivePeneszlek field is being considered as an addition to this modular developmentas will any future discoveries within the permit. Ascent's Managing Director Jeremy Eng said, "The farm-in programme has now beencompleted with the drilling of the four wells. The new exploration data, thegas show from VAM-1 as well as the PEN-104 gas discovery will provide theinformation that will enable us to understand the prospectivity of the area.The development project at Peneszlek will prove the productivity of thePannonian horizon in addition to the already proven underlying Miocenevolcaniclastic section." In Italy, having received final authorisations from governmental agencies, therig is now on route back to the Anagni location in the Frosinone explorationpermit. The Anagni-1 well was temporarily completed to allow time for theprocurement of specialist equipment both to enable the well to be deepened, toinvestigate more of the carbonate sequence, and to install the pump necessaryfor the testing operations to evaluate the oil reservoir. The information contained in this announcement has been reviewed and approved byboth Dr Eloi Dolivo, Ascent's Exploration Manager and Dr Clive Ninnes, Ascent'sEngineering Manager. Dr Dolivo (member of the AAPG) and Dr Ninnes (member ofSPE) both having 26 years experience in the evaluation of hydrocarbon resources. This announcement is timed for simultaneous release in the London and Toronto. * * 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 over 20 gas and oil 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 exploration wells across its portfolio. The Company operatesSpain's only onshore oilfield where production currently averages over 110barrels of oil per day. With the stable European gas market, Ascent's portfoliofavours gas over oil. With the exception of the Netherlands, all of its projectsare located onshore where operating and development costs are substantiallylower than they are offshore. This information is provided by RNS The company news service from the London Stock Exchange