Ascent Resources Regulatory News (AST)

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

10th July 2012

Ascent Resources plc

('Ascent' or 'the Company')

Penészlek Operations Update

Ascent Resources plc, the AIM listed European oil and gas exploration and production company, announces that, through its 48.8% owned subsidiary PetroHungaria kft, it has completed operations to add additional perforations to the PEN-105A gas well in the Penészlek field of northeastern Hungary.

PEN-105A is a sidetrack of the PEN-105 well and was originally completed in April 2012 with 7 metres of perforations. The total perforated interval is now 24 metres of the gross 59 metres of Miocene volcaniclastic reservoir. The additional perforations were made in two stages with a flow test for each stage. The results indicate that the acid stimulation which had originally been considered is not necessary given the strong well response to the newly-perforated sections. The deeper perforated intervals are below the previously defined gas-water contact and this will result in an increase of the gas reserves that can be produced from the PEN-105A well. Production is currently limited to approximately 2 MMscfd due to constraints at the third-party facility into which both the PEN-105A and PEN-101 wells produce. Discussions are on-going with the facility operator to remedy the facility bottleneck that would allow for greater production from the Penészlek wells. 

Jeremy Eng, Ascent's Managing Director commented, "The PEN-105A well result was better than expected because of improved reservoir characteristics at the PEN-105A location as compared to the original PEN-105; now the increased thickness of the proven gas bearing reservoir has further improved the overall results." 

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Ascent Resources plc has a diversified portfolio of hydrocarbon exploration and development interests across five countries in Europe: Italy, Switzerland, Hungary, Slovenia and Netherlands. Its 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.