Ascent Resources Regulatory News (AST)

28 Sep 2009 07:00



Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas

28 September 2009

Ascent Resources plc ('Ascent' or 'the Company')

Commences PEN-104AA Sidetrack

Ascent Resources plc, the AIM-traded oil and gas exploration and production company, through its 45.23% owned subsidiary PetroHungaria Kft ('PetroHungaria'), announces the commencement of a further sidetrack of the PEN-104 well ('PEN-104AA'), to test a substantial Miocene volcani-clastic (tuffaceous) prospect in the Penészlek field in the Nyírség permits of north eastern Hungary. The target for the sidetrack, identified on the 3D seismic that was acquired last year, will be drilled from the existing PEN-104A wellbore on essentially the same trajectory to a depth anticipated to be equivalent to a vertical depth of approximately 1,360 metres.

The rig that will used to drill the well is the same one that recently drilled and completed the nearby, successful, PEN-105 well. The Partners in PetroHungaria have decided that, due to the immediate availability of the drilling rig and associated services, along with the near complete depletion of the PEN-104A sand and the consequent increasing water production, that this is an ideal time to undertake these operations. PetroHungaria anticipates that, with the successful completion of drilling, production at the site will resume within a month.

PEN-104A is a sidetrack of the original Penészlek PEN-104 well and was drilled to recover gas from an undrained fault compartment in the Pannonian Sands identified on 3D seismic.  The combined production from both PEN-104 and PEN-104A is approximately 1.0 Bcf, yielding a satisfactory recovery factor of over 70% of the originally estimated gas in place for these reservoirs.

Ascent Managing Director Jeremy Eng said, "This is an excellent opportunity to explore this highly promising prospect, which we believe has the potential to add significant reserves to the PEN-104 well. Immediate availability of the drilling equipment has presented an ideal opportunity to allow us to complete the drilling swiftly and minimise disruption to gas production at the site. We look forward to providing further updates as the work nears its completion."

In Italy's Latina Valley, site works are nearing completion to allow Ascent to commence drilling the Fontana 1 geological appraisal well.  The drilling rig is now expected to mobilise to the location in the second week in October.

The technical information contained in this release has been reviewed and approved Dr Clive Ninnes, Ascent's Engineering Manager.  Dr Ninnes, a member of SPE has 28 years relevant experience in the evaluation of hydrocarbon resources.

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For further information visit www.ascentresources.co.uk or contact:

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 biased towards the development of gas assets and with the exception of the shallow water Netherlands project, all of the Company's projects are onshore where operating and development costs are substantially lower than they are offshore. Ascent also has an oil and gas asset management joint venture with San Severina Holdings SA, a Swiss based investment company, which is focused on acquiring minority interests and providing investment funding for producing and development or appraisal stage oil and gas projects.