Last checked at 7 Jun 2010 13:00
Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas
7 June 2010
Ascent Resources plc ('Ascent' or 'the Company')
Penészlek Production Update
Ascent Resources plc, the AIM-traded oil and gas exploration and production company, through its subsidiary PetroHungaria kft, has successfully acidized the PEN-101A well in the Penészlek area of the Nyírség exploration permits in eastern Hungary. Production is on-going from the PEN-105 well at an improved rate of 2.53 MMscfd with 37 barrels per day of condensate (71,700 m3/day; 459 boed) and PEN-101A will add to this production.
The PEN-101A well, which was side-tracked to bypass damaged cement, has been acidized and reperforated. Pressure test data showed that the formation near the well bore has been damaged by the drilling process and the two stage acidization has not managed to completely restore the productivity of the well. However, the PEN-105 well productivity, which produces from a similar Miocene volcanoclastic formation, is still improving and the PEN-101A well can be expected to behave in a similar way. So far, on test, the maximum production rate of the PEN-101A well has been 0.769 MMscfd (21,800 m3/day; 128 boed). Production rates through the production facility will be less than the rates measured during the test.
Ascent Resources' Managing Director Jeremy Eng said, "Although production from PEN 101A is modest, it is expected that these wells will produce steadily for some time to come. Our production in Hungary provides immediate cash flow, and whilst the Penészlek project is minor in comparison to other targets in our portfolio, these revenues are expected to provide the Company with positive cash flow during the remainder of 2010 and through 2011."
Ascent has a 48.776% interest in PEN-105 revenue and a 51.654% revenue in PEN-101A.
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 who has 29 years relevant experience in the evaluation of hydrocarbon resources.
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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 |
| Jerry Keen | Astaire Securities (Corporate Broking) | Tel: 020 7448 4492 |
| Gavin Burnell | Astaire Securities | Tel: 020 7448 4400 |
| Toby Gibbs | Astaire Securities | Tel: 020 7448 4400 |
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 would be offshore.