Ascent Resources Regulatory News (AST)

24 Aug 2007 13:00

Ascent Resources PLC24 August 2007 Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas 24 August 2007 Ascent Resources plc ('Ascent' or the 'Company') Italian Operations Update Overview • Arrone-1 well indicated strong gas shows during drilling but following log results it is not deemed to be commercial • Production test at Anagni-1 sustained at a rate of 200 barrels per day confirms the excellent productivity of the formation • Results of the offset well seismic at Anagni-1 confirm significant up-dip potential Ascent Resources plc, the AIM traded oil and gas exploration and productioncompany, has completed drilling the Arrone-1 well in the Fiume ArroneExploration Permit, to the west of Rome, and continues testing operations on theAnagni-1 oil discovery well in the Frosinone Exploration Permit to the southeast of Rome. The Arrone-1 well has been drilled to a total depth of 894m, The Base PlioceneUnconformity, which was the target for the well, was penetrated at 820m anddrilling continued into the underlying Miocene section. Despite strong gas showsduring drilling of the Pliocene section, which necessitated a 20% increase indrilling mud weight, the logs showed that there were only thin, low porositysand units that would not be capable of commercial production at this location.The partners in the project, Italmin Exploration (14%), Oracle Energy (20%), JKXItalia (10%) and Ascent's wholly owned subsidiary Ascent Resources Italia (56%and operator),have therefore agreed to plug and abandon the well. The production test of the Anagni-1 well continues with approximately 20% of thelost drilling fluid so far recovered. Samples of fluid taken a week ago, andanalysed in a third party laboratory, show traces of oil in the recovered fluidsup to 0.5% by volume. The well, which is equipped with a pump jack('nodding-donkey' pump), has been producing back the drilling fluids at asustained rate of circa 200 barrels (31.8 cu.m) per day. The preliminary resultsof the offset well seismic (VSP survey) have been received and these confirmthat the well was drilled on flank of the structure with the shallower part tothe east. Ascent's Managing Director Jeremy Eng said, "The result of the Arrone well was adisappointment as during drilling all the indications were very good; there wasjust a lack of good quality reservoir sands. However, at Anagni, all theinformation that we have so far is encouraging. The results of the offset wellseismic confirm that we drilled on the flank of the structure, which givessignificant up-dip potential and the sustained 200 barrels per day productionrate confirms the excellent productivity of the formation." The information contained in this announcement has been reviewed and approved byDr 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 have 26 years experience in the evaluation of hydrocarbon resources. This announcement is timed for simultaneous release of information in UK andCanada. * * 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. The Company operates Spain's onlyonshore oilfield where production currently averages over 110 barrels of oil perday. With the stable European gas market, Ascent's portfolio favours gas overoil. 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