Ascent Resources Regulatory News (AST)

4 Dec 2009 07:00



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

4 December 2009

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

Peneszlek Operations Update

Ascent Resources plc, the AIM-traded oil and gas production and exploration company, announces an update on the activities of its Hungarian subsidiary PetroHungaria Kft.  

Production testing of the PEN-105 well on the Company's Nyirseg South permit in northeastern Hungary, drilled and completed in August and September 2009, has yielded an initial flowrate of over 78,000 m3 of gas per day (2.75 MMscfd) from a nine metre interval at the top of the Miocene volcaniclastic section. This well is now shut-in awaiting the construction of the pipeline connection to the main export pipeline.

PetroHungaria has also completed the initial testing operations on the PEN-104AA well on the Nyirseg South permit in north-eastern Hungary. Following removal of the drilling rig, operations began on the well on 30 November 2009 to test a Miocene volcaniclastic reservoir section identified by open-hole well logs and mud log shows to be potentially gas bearing. The well, which was drilled as a high angle deviated well, was completed with external casing packers and a slotted liner in an effort to minimise formation damage and provide maximum access to the reservoir.

On flow, the well produced a small quantity of natural gas along with approximately 20 m3 of water. Analysis of the produced water indicates that it is filtrate lost into the formation during drilling (over 200 m3 of drilling fluids were lost to the formation while drilling the reservoir section and while completing the well). Pending further evaluation of the preliminary test results, it is anticipated that Ascent and its partners will continue testing operations when further specialist equipment can be mobilised in January.

Also at Peneszlek, the drilling permits for the PEN-101 and PEN-106 wells have been issued and site construction will commence shortly. The drilling rig is expected to be mobilized to the location late in January 2010.

Ascent Managing Director Jeremy Eng said, "We are pleased with the completed test results on the PEN-105 well and expect that it will be on production in February 2010, allowing us to take advantage of the strong Hungarian gas pricing. The productive formation of PEN-105 is the same as PEN-104AA. However PEN-104AA was drilled at deviations of up to 65°, and not only has a complex slotted liner completion but also experienced substantial losses whilst drilling. This is disappointing as the preliminary results are inconclusive meaning further testing is necessary to understand its potential. On the other hand, both of the two new planned wells have simple vertical profiles and therefore should be quick to drill and bring onto production on success."

Ascent has a 45.23% interest in the Penészlek Project; through its equity interest in PetroHungaria Kft. Other partners are; DualEx Energy (37.5%), Geomega (8%), Leni Gas & Oil (7.27%) and Swede Resources (2%).

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 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 are offshore.