Last checked at 28 Apr 2010 07:00
Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas
28 April 2010
Ascent Resources plc ('Ascent' or 'the Company')
Partner Withdrawal from Po Valley Permit
Ascent Resources plc, the AIM-traded oil and gas exploration and production company, through its wholly owned subsidiary Ascent Resources Italia srl, has agreed terms with farm-in partner Otto Energy Limited ('Otto') for Otto's withdrawal from the Cento & Bastiglia exploration permit ('the Permit') in the Po Valley of northern Italy. Under the terms of the withdrawal, Ascent will retain 100% of the licence and Otto will immediately contribute funds towards potential restoration costs and forfeit its entitlement to the refund of any value added tax ('VAT') due on the project.
In 2007, Ascent farmed out a 50% working interest in the Permit to Otto in return for the funding of the Gazzata-1 exploration well that was drilled in 2009 and €1.5 million of seismic expenses. After the unsuccessful Gazzata well and a strategic review of its geographic focus, Otto has elected not to continue with the exploration of the licence. The value to Ascent of the VAT refund and the restoration funding is estimated to be €800,000.
Ascent has reviewed the technical data on the licence and is considering seismic acquisition as the next stage of the exploration programme. However, for 2010, priority will be given to the major Petišovci Lovaszi development project in Slovenia and Hungary where 3-D seismic is currently being acquired at Lovaszi and planning for up to six wells in Slovenia continues.
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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 |
| Shane Gallwey | Astaire Securities | Tel: 020 7448 4400 |
| Jerry Keen | Astaire Securities (Corporate Broking) | Tel: 020 7448 4492 |
| Toby Gibbs | Astaire Securities | Tel: 020 7448 4400 |
| 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 interests in 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.