Ascent Resources Regulatory News (AST)

12 Aug 2008 07:00



Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas

12 August 2008

Ascent Resources plc ("Ascent" or "the Company")

Gas Production Commences in Hungary

Ascent Resources plc, the AIM-traded oil and gas exploration and production company, has commenced gas production at the PEN-104 well in the Penészlek area of the Nyírség permits in Hungary. The production rate of the well is currently 48,000 cu.m of gas with a wellhead pressure of 92 bar. The rate will gradually be increased over the next few days to a target of 85,000 cu.m per day (3 MMscfd; 500 boepd).

The PEN-104 discovery well was originally drilled in 2006 by PetroHungaria kft. Gas production, following metering at the newly constructed PEN-104 facility, is transported by pipeline to the MOL gas processing facility at Hajdúszoboszló, 50 km from the well.

Ascent holds a 45.23% interest in the Penészlek Project through its equity interest in PetroHungaria kft. Other partners are DualEx (37.5%), Geomega (8%), Leni Gas & Oil (7.27%) and Swede Resources (2%).

Future plans for the Nyírség exploration permits include the acquisition of a 3-D seismic survey with the objective of delineating other gas reservoirs within the vicinity. Two wells in the survey area have previously tested gas but to date, have not been put into production. Additionally, the Penészlek field, which produced gas between 1983 and 1991, is a candidate for redevelopment.

Ascent Managing Director Jeremy Eng said, "The commencement of production at the Pen-104 well is a positive step forward both for our Hungarian assets and for the Company.  With Ascent's involvement, the PEN-104 project has characterised the full cycle of the exploration and production business; starting with the acquisition of seismic, through the drilling of the discovery well, the construction of the production facility and finally, gas sales and producing a revenue stream. 

"This is an opportune moment to start production in Hungary considering the current strong gas prices and possibility for the sale of production on the domestic market where over 70% of gas consumed is imported.  Going forward, the Company will look to increase cashflow by bringing further wells on stream in the area."

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Glossary

cu. m Cubic metre

MMscfd Millions of standard cubic feet of gas per day

boepd Barrels of oil equivalent per day (1 barrel of oil is equivalent to 6,000 standard cubic feet of gas)

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