Last checked at 1 Jul 2010 07:00
Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas
1 July 2010
Ascent Resources plc ('Ascent' or 'the Company')
Increase in Interest in Petišovci Project
Ascent Resources plc, the AIM-traded oil and gas exploration and production company, through its subsidiary Ascent Slovenia Limited ('ASL'), has increased its interest in the Petišovci project in Slovenia, following the transfer of Kulczyk Oil Ventures Inc's (formerly Loon Energy Inc) ('KOV') 30% stake in the Dolina shallow oil field, and 10.5% stake in the Globoki deep gas field. In addition to a small cash payment, a royalty will be paid by ASL to KOV of an additional 60,000 USD for each billion cubic feet of independently certified 2P gas reserves produced in the future, applicable to the acquired interest. Under the terms, Ascent will assume all development costs related to the acquired interest.
The Petišovci project, which has been independently estimated to have gas reserves in excess of 300bcf, is contiguous to the Company's Lovászi project in Hungary. Both projects are key to Ascent's work programme for 2010 with four wells, currently under sole risk, targeted over the projects this year. These targets follow the results of the processing of 3D seismic data announced in March 2010.
The original Petišovci project area covers 35.5 km2 with ASL being partnered in the joint venture by Geoenergo and Stratic Energy. Following the transaction, ASL now has a 75% interest in the shallow oil and gas reservoirs and a 26.25% interest in the deeper tight gas reservoirs in the original project area. In the surrounding additional 61.5 km2 project area Ascent, through ASL, has a 75% interest in both the shallow and the deep reservoirs, which is in partnership with Geoenergo only.
In the adjacent Hungarian part of the project, Ascent, through its wholly owned subsidiary Ascent Hungary Limited ('AHL'), has a 50% interest in an area of 90 km2 in partnership with MOL Oil and Gas plc. Further 3-D seismic has been acquired in this area and processing of this data is currently underway.
Ascent Managing Director Jeremy Eng said, "Our current focus is built around the near-term potential of the Petišovci-Lovászi project areas. By securing an additional stake with payment on a royalty basis, we have substantially increased the potential upside from this project for our shareholders. With production and revenues now online from the Penészlek project in Hungary, we are cash positive and our efforts can be concentrated on the areas of our portfolio that could substantiate a drastic re-rating of our assets."
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For further information visit www.ascentresources.co.uk or contact:
| Jeremy Eng | Ascent Resources plc | Tel: 020 7251 4905 |
| Simon Cunningham | Ascent Resources plc | Tel: 020 7251 4905 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
| Paul Youens | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
| Jerry Keen | Astaire Securities (Corporate Broking) | Tel: 020 7492 4765 |
| Gavin Burnell | Astaire Securities | Tel: 020 7492 4773 |
| Toby Gibbs | Astaire Securities | Tel: 020 7492 4774 |
| Daniel Fox-Davies | Fox-Davies Capital Ltd | Tel: 020 7936 5200 |
| James Hehn | Fox-Davies Capital Ltd | Tel: 020 7936 5200 |
Notes
Ascent Resources plc has a diversified portfolio of hydrocarbon exploration and development projects across five countries in Europe: Italy, Switzerland, Hungary, Slovenia and Netherlands. Ascent's portfolio contains a solid base of field redevelopment projects with selected exposure to exploration upside. The portfolio is focussed on gas and with the exception of the shallow water Netherlands project, all of its projects are located onshore where operating and development costs are substantially lower than they would be offshore.