Ascent Resources Regulatory News (AST)

10 Apr 2007 10:00

Ascent Resources PLC10 April 2007 Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas 10th April 2007 Ascent Resources plc ("Ascent" or the "Company") Hungarian Projects Update Ascent Resources plc, the European focused gas and oil exploration andproduction company, in conjunction with its 90% owned Hungarian joint venture,PetroHungaria Kft, announces an update on its Hungarian activities. The gasfield redevelopment project in the south west of Hungary, in associationwith MOL, the Hungarian oil and gas company, has been granted project sanctionfrom MOL's Upstream management. Additionally, the project has been granted bythe Ministry of Economy and Transport a reduced royalty rate of 12.46%, downfrom 70% previously, for gas produced under this redevelopment initiative.Planning for the drilling of horizontal recompletions (horizontal drilling froman existing wellbore) continues and the availability of suitable drilling rigsand associated specialist equipment is being checked. In the Nyirseg project in the north east, drilling locations are being preparedfor the upcoming two well drilling programme. These wells are the option wellsunder the farm-in agreement and are 79% funded by DualEx and PetroPequnia butwith PetroHungaria retaining a 60.5% working interest. The first well, PEN-102,is an appraisal well of a gas discovery, made in 1983, but never placed onproduction. This well is targeting lower Miocene tuffaceous reservoir rocks thatproduced in the Peneszlek gas field 6km to the east. In addition, the prospectincludes a shallower Pannonian Sand prospect similar to that successfully testedin the PEN-104 discovery. The second well, VAM-1, will test an explorationprospect in the Vamospercs area, roughly 18 km to the southwest of the Peneszlekfield. Drilling of PEN-102 is anticipated to commence in May, immediatelyfollowed by VAM-1. Also in Nyirseg, a development feasibility study for the PEN-104 gas discovery(announced on the 14 November 2006) has been completed with options currentlybeing assessed for bringing PEN-104 to market in 2007, subject to contract,permitting and approvals. Ascent Managing Director Jeremy Eng said. "Good progress has been made on theCompany's two projects in Hungary and both of these have the capability toincrease reserves as well as to produce and sell gas in the short-term, therebyproviding additional cashflow for the Company." * * 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 oil and gas projects across sixcountries in Europe. The projects are onshore in Italy, Switzerland, Hungary,Spain, Slovenia and offshore Netherlands. In the current drilling campaign,Ascent has already drilled two wells in Hungary, one of which was a gasdiscovery. The Anagni-1 well, first of two Italian wells, has been temporarilycompleted as an oil discovery and is to be deepened and testing and theHontomin-4 well, the first of two wells in Spain is drilling at present.Starting in May 2007, two gas exploration wells are to be drilled in Hungary.High impact gas exploration wells are planned in the Po Valley in Italy and agas exploration well in Switzerland, subject to permitting and rig availability. Ascent operates Spain's only onshore oilfield where production currentlyaverages over 100 barrels of oil per day. With the stable European gas market, Ascent's portfolio favours gas over oiland, with the exception of the Netherlands, all of its projects are locatedonshore where operating and development costs are substantially lower than theyare offshore. This information is provided by RNS The company news service from the London Stock Exchange