Ascent Resources Regulatory News (AST)

27 Apr 2006 11:00

Ascent Resources PLC27 April 2006 Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas 27 April 2006 Ascent Resources plc ("Ascent" or "the Company") Operation update Ascent Resources plc, the European focused oil and gas exploration andproduction company, is pleased to announce the some details of its 2006 DrillingProgramme of six operated wells and an operational update on its production andexploration assets in Spain, Italy, Hungary, Switzerland, Romania and Holland. This drilling programme, which does not include the four wells planned forRomania, primarily focused on previous discoveries, is in the table below.Contractors with suitable drilling rigs have confirmed their availability foreach of these wells although all are subject to permitting and regulatoryapproval for the location which is in progress. Well Area Exploration Permit Target Commencing 1 Tozo-1 Spain -Sedano Basin Basconcillos H Oil August 2 PHNS-1 N-E Hungary Nyirseg Szatmar Gas August 3 PHND-1 N-E Hungary Nyirseg Del Gas September 4 Anagni-1 Italy - Latina Valley Frosinone Oil September 5 FA-1 Italy - Latium Coast Fiume Arrone Gas October 6 Hontomin-4 Spain - Sedano Basin Huemeces Oil October Spain: Oil Production and Exploration Production from the Ayoluengo field continues to average a gross of 115 barrelsof oil per day. The project's cashflow has been improved with the recent rise ininternational oil prices. Well work-overs (maintenance and upgrading work) areplanned for the field and will commence in May subject to delivery of equipmentand materials. The two wells to be drilled in 2006 are the Tozo 1 re-entry and Hontomin 4appraisal. Both are close to the Ayoluengo field and target oil discoveries thatwere made by Chevron in the 1970's. Italy - Oil and Gas Exploration: In the Po Valley, based on the results from the reprocessing and interpretationof the seismic acquired from ENI in the Cento and Bastiglia exploration permits,the permitting of the first two locations is now underway and a further two willcommence shortly. The drilling of these gas exploration wells is to be includedin the 2007 Drilling Programme. In the Latina Valley, where the focus is on oil exploration, a 60km seismicsurvey and the drilling of the Anagni-1 well are both scheduled for September2006. In the Fiume Arrone permit, close to Rome's Fiumicino airport, a gas explorationwell is planned for October 2006. Hungary Having received results from last year's seismic programme conducted on theNyirseg permits, by Ascent's Hungarian Joint Venture PetroHungaria, the workprogramme for this area has now been prioritised and two wells are planned forlate summer. The Joint Steering Committee of PetroHungaria's project involving therehabilitation of low permeability gasfields in conjunction with MOL HungarianOil and Gas plc, has approved the commencement of Phase 2. This includes thedetailed planning of three horizontal recompletions in a producing gasfield inSouth Western Hungary. Switzerland In the Canton of Bern, re-processing of existing seismic in the area around thetwo existing gas discovery wells, Linden (1972) and Hermrigen (1982), isunderway. Subsequent geological modelling with the incorporation of allhydrocarbon exploration data will lead to a prospectivity report to be publishedlater this year. Subject to the results of this report, wells will be scheduledfor the 2007 Drilling Programme. In the Canton of Vaud, the application that surrounds the Essertines (1962) oildiscovery well, drilled by BEB, has passed all regulatory stages and the issueof the permit is expected imminently. Romania Ascent recently acquired a 5% interest in three prospective exploration blocks,through its acquisition of MIRC. In Brodina, the first gas production isexpected from the Bilca development in late July. An active explorationprogramme is underway in all three blocks including new seismic work and it isanticipated that four exploration wells will be drilled by the end of 2006. Holland Ascent made applications for six exploration licenses submitted last year.Following a three month gazettal period, competing bids have been submitted tothe authorities on two of the six areas, and their decision on these two isawaited. The remaining four are uncontested. * * ENDS * * Contacts: Jeremy Eng Ascent Resources plc Tel: 020 7251 4905 Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477 Notes Ascent Resources plc has assembled an extensive portfolio of 20 oil and gasexploration and production assets across Europe since March 2005. These assetsinclude oil production from the Ayoluengo Field of northern Spain along withnearby oil exploration, oil and gas exploration in Switzerland and Italy, gasexploration and development in Hungary and Romania, as well as applications fornew acreage offshore Holland and minor assets in Gabon. With the strong and stable European gas market, the Company's portfolio isbalanced in favour of gas over oil and with the exception of Holland, projectsare located onshore where operating and development costs are very much lessthan offshore. Over the next 12 months, six exploration wells are planned: twoin Spain, two in Italy and two in Hungary. Suitable drilling equipment has beensourced and the permitting of these wells is in progress with drilling tocommence in the late summer. In parallel with acquiring the oil and gas assets, the Company has appointed tothe Board a team of experienced directors who are specialists in the Europeanoil and gas business and each of whom has expertise and experience incommercialising oil and gas assets. This information is provided by RNS The company news service from the London Stock Exchange